Season’s Greetings!

December 25, 2020

Ho Ho Ho

And a Merry Christmas from Sarasota, Florida.

Another sunny Christmas day. At 57º maybe a little cooler than usual.

Once again, here is CHINADebate’s holiday card to you all.

For those of you who don’t know, the painting is the CHINADebate logo, with seasonally appropriate caps added to the elephant and the blind monks.

I use it every year because, frankly, I can’t come up with a better card.

The scene is a depiction of the story of the blind men and the elephant.

This is summarized in a Chinese chengyu as 瞎子摸象 (xiā zi mō xiàng), ‘blind men touch elephant.’
Here’s the story, which originated in India:

‘A group of blind men heard that a strange animal, called an elephant, had been brought to the town, but none of them were aware of its shape and form.’

‘Out of curiosity, they said: "We must inspect and know it by touch, of which we are capable".'

‘So, they sought it out, and when they found it they groped about it.’

‘The first person, whose hand landed on the trunk, said, "This being is like a thick snake".
‘For another one whose hand reached its ear, it seemed like a kind of fan.’
‘As for another person, whose hand was upon its leg, said, the elephant is a pillar like a tree-trunk.’
‘The blind man who placed his hand upon its side said the elephant, "is a wall". Another who felt its tail, described it as a rope.’
‘The last felt its tusk, stating the elephant is that which is hard, smooth and like a spear.’

This parable is used by many different religions and philosophies to illustrate many different points.

In one interpretation, the conflicting views of the blind men lead to arguments about what an elephant is.
But finally one of them figures out the reason for such divergent positions.
He suggests that instead of fighting they gather around and assemble their experiences.
The result: A reasonable, although imperfect, portrait of an elephant in each person's mind.

For CHINADebate, the painting and chengyu led to the tagline: ‘It takes a lot of different views to understand China.’

So for any given issue, we do our best to give you some different perspectives, and let you come to your own conclusion.

My best wishes to you all in this festive, if now muted, season.

And be on the lookout: the elephant and the blind men, differently attired, will be back on New Year’s Day

'Pound for Pound, Taiwan Is the Most Important Place in the World'

December 17, 2020

<div style="background-color:#f5f5f5; margin:0 auto; padding:0; text-align:center;"><table cellpadding="0" cellspacing="0" width="100%" style="background-color: #f5f5f5; text-align: center;"><tbody><tr><td><table cellspacing="0" cellpadding="0" style="width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td><div></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><h1 style="font-family: 'Lato';font-size: 26px;line-height: 36px;font-weight: 400;color: #001544;letter-spacing: 0.1px;display: inline-block;margin-block-end: 0;margin-inline-start: 0px;margin-inline-end: 0px;"><strong style="font-weight: bold">Greetings!</strong></h1><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">In this issue:</strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">1. Henry Paulson: How to Fix Our Relationship with China</strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">2. CFR: How 2020 Shaped U.S.-China Relations</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">‘Trump’s China Gift to Biden’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">‘Tech Rivalry Intensifies Over 5G, TikTok’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">3. Semiconductors & Taiwan</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Pound for Pound, Taiwan Is the Most Important Place in the World' </li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Taiwan, Biden and China’s High-Tech Ambitions'</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">4. China Economic Policy 2021</strong>:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Economic Policy Likely Less Accommodative Than Expected in 2021' </li></ul><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">CHINADebate, the publisher of the China Macro Reporter, aims to present different views on a given issue.</strong></em></h2><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">Including an article here does imply agreement with or endorsement of its contents.</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">First,</strong> there was ‘why can’t we just get along with China?’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Then in the last few years</strong> there has been the increasingly bipartisan judgment that ‘China is the primary threat to the U.S.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">During those years of ‘China as enemy’</strong> more moderate voices generally kept their heads down.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Now,</strong> with a more moderate administration about to take office, those voices are back.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Representative of these</strong> is former Treasurer Secretary Hank Paulson. In a <em style="font-style: italic">Wall Street Journal</em> op-ed, he counsels:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Competition without unnecessary confrontation</strong> should be our goal—because confrontation without effective competition has produced some poor results for the American people.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">'We must reject the notion</strong> that we don’t benefit from an economic relationship with China.'</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold"> 'It is not unpatriotic</strong> to say this.' </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">The debate</strong> about what China is and how the U.S. should relate to it is once again embracing a range of views.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">And that will certainly lead</strong> to more clarity and better policy than Evil Empire rhetoric.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">But, given the polling in the U.S. </strong>that<strong style="font-weight: bold"></strong>shows strong anti-China sentiments and the members of Congress who reflect those views of their constituents, expect a standoff between the Hawks and those who not exactly Doves for some time to come.</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"> </p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Liz Economy of the Council on Foreign Relations</strong> points out that the Trump administration is in a rush in its final days to enshrine that Evil Empire rhetoric in more policy actions:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In the weeks following the U.S. presidential election,</strong> administration officials have undertaken a flurry of activities related to Tibet, Taiwan, financial decoupling, and the South China Sea, adding to the vast edifice of initiatives they have constructed over the past four years.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">About these</strong>, Dr. Economy asserts a few counterintuitive points:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘While it may appear</strong> as though these last-minute actions will make it more difficult for the incoming Biden administration, the opposite is true.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The more policies the Trump administration piles on,</strong> the greater the leverage and range of options it leaves for the Biden team.’ </li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The Biden administration</strong> will have the luxury of deciding how much to retain of what the Trump team has built.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">BTW Dr. Economy’s comments</strong> come from a Council on Foreign Relations article, ‘How 2020 Shaped U.S.-China Relations.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">In addition to Dr. Economy's, </strong>there are<strong style="font-weight: bold"></strong>essays by Yanzhong Huang<em style="font-style: italic">, </em>Jerome A. Cohen<em style="font-style: italic">, </em>Adam Segal<em style="font-style: italic">, and </em>Julian Gewirtz</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"> </p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">A few months ago, </strong>I highlighted an essay by Harvard’s Graham Allison in which he suggested that U.S. efforts to starve Huawei – and China – of semiconductors could lead China to invade Taiwan to get control of its fabs.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">His analogy</strong> was to the months before World War II when the U.S. cut off Japan’s access to oil, and Japan saw itself as facing the choice: attack the U.S. or perish.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">While, as Dr. Allison admits,</strong> this is an unlikely scenario, it pointed up once again how critical Taiwan is as a supplier of semiconductors.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold"> </strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">That is reinforced</strong> in 'Pound for Pound, Taiwan Is the Most Important Place in the World,’ by Ruchir Sharma, chief global strategist, Morgan Stanley Investment Management, in <em style="font-style: italic">The New York Times</em>.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The new Cold War,</strong> between the United States and China, is increasingly focused on access to just one industry in one place: computer chips made in Taiwan.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Over the past year, </strong>Taiwan has taken a lead in the race to build thinner, faster and more powerful chips, or semiconductors.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘As of now, any country </strong>looking to dominate the digital future has to buy these superfast, ultrathin chips from either Taiwan or South Korea.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And Taiwan</strong> has the edge in both technology and market power.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Pound for pound,</strong> it is the most important place in the world.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">One more reason</strong> why Taiwan and the Taiwan Straits are the most dangerous flashpoints in the world.</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"> </p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Commenting</strong> on this year’s upcoming Central Economic Work Conference, MacroPolo’s Houze Song writes:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘A central theme </strong>of this year’s Central Economic Work Conference (CEWC) will likely focus on the implementation of the recently announced 14th Five–Year Plan (FYP) that starts in 2021.’ </li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This means the policy direction</strong> will center on supply side structural reforms, such as innovation, improving the business environment, and addressing inequality.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Meanwhile,</strong> de-risking and deleveraging are back on Beijing’s agenda, which implies that demand-side policies will be relatively restrictive as well.’  </li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Combined,</strong> this policy direction should inject some caution into the latest bullish growth forecasts for 2021, since the signal is still deemphasizing growth.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">This Conference</strong> will be a bigger deal than it sounds, and we’ll be following it closely.</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block; margin-bottom:20px; padding:15px 3.5% 20px 3.5%; color:#ffffff; background-color:#c80000; text-align:center; font-family:'Lato'; font-size:1.75rem; line-height:2.75rem; font-weight:bold;">1. Henry Paulson: How to Fix Our Relationship With China                                          </span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding:5% 3.5%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7a8LUO?track_p_id=6vi15lc82BRRG_D6ZsAgB6C" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/K9fKxwrt-0GqvuYSovNp30i__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:41px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/7a8LUO?track_p_id=7ahJJ6TK82BRRG_mmm15WNI" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'Henry Paulson: How to Fix Our Relationship With China'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td><a href="http://sco.lt/7a8LUO?track_p_id=1r82BRRG_MqMgv3qCYuviT3" target="_blank" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/CIYi4HIwGKk_rh9P_AtHYjl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display:block; width:100%; border:none; height:auto"></a></td></tr><tr><td style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The Wall Street Journal</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Hank Paulson</strong> | former Secretary of the Treasury</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">'We must reject the notion that we don’t benefit from an economic relationship with China. It is not unpatriotic to say this.' </strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘President-elect </strong><a href="https://www.wsj.com/topics/person/joe-biden" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">Joe Biden</strong></a> is inheriting a relationship with China that will be fraught for the foreseeable future.'</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Over the past several years</strong>—and increasingly during 2020—we’ve seen signs of stress: more tariffs, heightened restrictions, revoked visas, fewer student and scholar exchanges, inflammatory rhetoric and much more.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘To be sure,</strong> while the new administration can bring new policies, competition is the cornerstone of the U.S. relationship with a power that has a rival ideology and very different economic and political systems.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But keeping that competition healthy,</strong> and not pernicious, is vitally important.'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Relentless, debilitating competition</strong> where the two governments seek to curtail all trade, investment and technology flows will make that nearly impossible.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">'We must reject the notion</strong> that we don’t benefit from an economic relationship with China.'</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold"> 'It is not unpatriotic</strong> to say this.' </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘We will need to rebuild our relationships with allies</strong> and shape the environment to create incentives and disincentives for China’s choices and conduct.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It is essential to put in place</strong> new global rules for trade, investment, technology, the environment and the digital world.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Here, President Biden should join with our allies,</strong> such as Japan, the European Union, the U.K., South Korea and Australia, to leverage a coordinated policy to upgrade the global trading system and its governing bodies, like the World Trade Organization.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘If these allied economies</strong> can agree on a framework, they will be in a far stronger position to invite China to join, if it is willing to meet the agreed-upon global standards.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘If Beijing refuses to join us </strong>in this new multilateral effort, we should look to a punitive tool kit built on targeted reciprocity that includes jointly withholding access to our markets.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Biden administration</strong> should initiate a comprehensive new round of bilateral negotiations with China aimed at achieving a fair, sweeping and reciprocal trade relationship focused on markets of the future.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Such an agreement</strong> would open key areas to investment and export, address the market distortions of China’s state-owned firms, and deal with structural and process issues that include both services and goods.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">'In return, the U.S. should be more predictable</strong> and prepared to make our own market open to trade and investment from Chinese firms.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Of course, investments</strong> that threaten our national security should be prohibited.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But we must be careful to avoid</strong> sequestering so much technology that American companies lose their ability to commercialize and deploy their products in the world’s fastest-growing market.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Similarly,</strong> preventing legitimate Chinese companies from U.S. capital-market listings on vague national-security grounds only makes London, Hong Kong or Tokyo more attractive.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Such actions</strong> will do more to hurt America’s credibility, leadership and economic competitiveness than halt China’s progress.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The key</strong> is to get strategic competition with China right.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Competition without unnecessary confrontation</strong> should be our goal—because confrontation without effective competition has produced some poor results for the American people.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It has damaged our economy.</strong> It has stunted our export opportunities. In time, it will threaten the peace of the world and doesn’t make us safer.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And so,</strong> we will have chaos and conflict if we cannot get this right.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding:15px 3.5% 20px 3.5%;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">2. CFR: How 2020 Shaped U.S.-China Relations</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/99b5EG?track_p_id=1v5MUwTG_VsVng4zVjLjWhf" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/DKFLL_WFNIxtoniJ10LrLki__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:41px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/99b5EG?track_p_id=8ZHKLUu4J5MUwTG_2QxKjch" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">‘Trump’s China Gift to Biden’</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td><a href="http://sco.lt/99b5EG?track_p_id=ckrV%40YskiIEV65MUwTG_tWz" target="_blank" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/6i-e2nR-OfwewCybHAZRMjl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display:block; width:100%; border:none; height:auto"></a></td></tr><tr><td style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Council on Foreign Relations</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Elizabeth C. Economy</strong> | Council on Foreign Relations</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘The more policies the Trump administration piles on, the greater the leverage and range of options it leaves for the Biden team.’ </strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Trump administration’s China policy</strong> is here to stay—or at least that is what the administration is working furiously to ensure.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In the weeks following the U.S. presidential election,</strong> administration officials have undertaken a flurry of activities related to <a href="https://www.voanews.com/usa/tibetan-government-leader-makes-historic-white-house-visit" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">Tibet</a>, <a href="https://www.theguardian.com/world/2020/nov/21/us-and-taiwan-sign-five-year-agreement-on-health-tech-and-security" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">Taiwan</a>, financial <a href="https://www.reuters.com/article/uk-usa-china-securities-companies-factbo/factbox-list-of-31-chinese-companies-designated-by-the-us-as-military-backed-idUSKBN27T09E" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">decoupling</a>, and the <a href="https://www.voanews.com/east-asia-pacific/high-level-us-visit-asia-seen-locking-trumps-tough-china-policy" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">South China Sea</a>, adding to the vast edifice of initiatives they have constructed over the past four years.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘While it may appear</strong> as though these last-minute actions will make it more difficult for the incoming Biden administration, the opposite is true.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The more policies the Trump administration piles on,</strong> the greater the leverage and range of options it leaves for the Biden team.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Biden administration</strong> will have the luxury of deciding how much to retain of what the Trump team has built.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Some decisions,</strong> such as whether to <a href="https://www.wsj.com/articles/biden-is-expected-to-review-trumps-trade-tariffs-11604917803" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">maintain tariffs </a>on $370 billion worth of Chinese goods, will be challenging.'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The tariffs</strong> have hurt the U.S. economy, but they have also given the United States economic leverage.'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Moreover,</strong> unwinding them too quickly will leave the new administration open to accusations of being soft on China.'</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Other moves,</strong> including reviving the Quadrilateral Security Dialogue with Australia, India, and Japan; elevating the U.S.-Taiwan relationship; and sanctioning officials and companies suspected of <a href="https://www.cfr.org/backgrounder/chinas-repression-uighurs-xinjiang" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">human rights abuses in Xinjiang</a>, are likely here to stay.'</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Some efforts,</strong> such as the <a href="https://www.fbi.gov/investigate/counterintelligence/the-china-threat" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">aggressive prosecution </a>of those involved in Chinese influence activities in the United States, could be maintained but tempered significantly.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Biden administration</strong> could realize some quick wins by filling in the gaping holes the Trump team has created by abandoning traditional sources of U.S. leverage and influence.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Rejoining international institutions and agreements,</strong> partnering with European allies, strengthening the United States, and reconstructing the U.S.-China diplomatic framework are likely all on Biden’s agenda.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘But realizing the benefits</strong> and rectifying the mistakes of the Trump administration’s China policy is good only for the first one hundred days.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The true test</strong> for the Biden administration is what it will do about China in the remaining 1,360.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/78hZzs?track_p_id=cPCAYLTG4P4oq5V0uNC_Icy" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/DKFLL_WFNIxtoniJ10LrLki__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:41px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/78hZzs?track_p_id=1D5V0uNC_RUS5slyfSIa2QW" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">‘Tech Rivalry Intensifies Over 5G, TikTok’</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Council on Foreign Relations</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Adam Segal</strong> | Council on Foreign Relations</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘The U.S.-China struggle over technology will not disappear in 2021.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘This year saw significant escalation</strong> in the technology competition between the United States and China.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Most important,</strong> in May, the U.S. Commerce Department tightened the <a href="https://www.cfr.org/backgrounder/huawei-chinas-controversial-tech-giant" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">noose on Huawei</a>, cutting the telecommunications manufacturer off from critical semiconductor suppliers and expanding restrictions on U.S. technology.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘These measures</strong> dealt a severe blow to the company’s 5G business, and, as a result, several European countries announced restrictions on Huawei’s participation in their telecommunication networks.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In addition,</strong> the Trump administration moved to ban the Chinese-owned apps TikTok and WeChat for national security reasons, which would mark the first time the United States widely blocks foreign information technology.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘While these restrictions</strong> have so far been halted by the courts, the Trump administration further announced its intention to <a href="https://www.state.gov/announcing-the-expansion-of-the-clean-network-to-safeguard-americas-assets/" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">limit Chinese telecom carriers </a>and cloud service providers as well as restrict Chinese developers’ access to American mobile application stores.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Beijing is trying to insulate itself</strong> from Washington’s pressure.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In recent months,</strong> it announced a new strategy to maintain economic growth and reduce its reliance on foreign markets and technology.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The domestic chip industry</strong> is an especially important area of focus.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The government is spending billions of dollars</strong> to support research and development, encouraging small firms to enter the sector, recruiting talent from Taiwan and conducting cyberattacks on Taiwanese chip firms, and exploring open-source technologies that could be beyond the reach of American export control laws.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In addition,</strong> the Chinese leadership is asserting more political control over the technology sector:’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘it issued </strong><a href="https://www.nytimes.com/2020/09/17/business/china-communist-private-business.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">new guidelines </strong></a>to increase the influence of the Chinese Communist Party within firms; blocked the IPO of <a href="https://www.wsj.com/articles/china-president-xi-jinping-halted-jack-ma-ant-ipo-11605203556" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">Ant Group</a>, one of the world’s highest valued financial technology companies; and unveiled new anti-monopoly regulations that limit the influence of the biggest companies.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The U.S.-China struggle over technology</strong> will not disappear in 2021.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The Biden administration’s technology policy</strong> will likely be more multilateral and more closely tied to domestic economic initiatives, but still oriented toward <a href="https://www.foreignaffairs.com/articles/north-america/2020-09-09/coming-tech-cold-war-china" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">competition with China</a>.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Beijing will not abandon its efforts</strong> to increase indigenous innovation capabilities and reduce U.S. leverage.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Technology competition</strong> is now a defining element of the bilateral relationship.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">3. Semiconductors & Taiwan</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/68aB04?track_p_id=csoVvHVc%40VLET7NEnvS_3pQ" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/3QKIJ28TXRxlm_PNLipujEi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:41px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/68aB04?track_p_id=aun5B5Yb53V7NEnvS_SUwAY" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">Semiconductors | 'Pound for Pound, Taiwan Is the Most Important Place in the World' </a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td><a href="http://sco.lt/68aB04?track_p_id=9vwl1J6s6d7NEnvS_UUS3g3" target="_blank" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/Ao6ugt9Khys_FldzVJ_zUDl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display:block; width:100%; border:none; height:auto"></a></td></tr></tbody></table></div><div><blockquote style="font-family: Georgia, serif;font-size: 17px;line-height: 30px;font-weight: normal;color: #001544;display: block;border-left: 5px solid #ddd;padding-left: 1rem;margin-top: 1.5rem;margin-bottom: 1.5rem;margin-left: 1.2rem;margin-right: 1.5rem;"><strong style="font-weight: bold"> </strong><em style="font-style: italic"><strong style="font-weight: bold"> ‘TSMC has always insisted on building a strong, in-house R&D capability. As a global semiconductor technology leader, TSMC provides the most advanced and comprehensive portfolio of dedicated foundry process technologies.’  </strong></em><strong style="font-weight: bold">TSMC website</strong></blockquote></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The New York Times</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Ruchir Sharma</strong> | chief global strategist, Morgan Stanley Investment Management</h3><h2 style="font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;text-align: center;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘Taiwan is at the center of the battle for global technological supremacy. Pound for pound, it is the most important place in the world.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The new Cold War,</strong> between the United States and China, is increasingly focused on access to just one industry in one place:’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘computer chips</strong> made in Taiwan.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Over the past year, </strong>Taiwan has taken a lead in the race to build thinner, faster and more powerful chips, or semiconductors.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Its fastest chips</strong> are the critical building blocks of rapidly evolving digital industries like artificial intelligence and high-speed computing.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The thinnest chips</strong> will be powering the coming “internet of things,” in which homes, cars, appliances and even clothes will connect to smartphones and voice-activated speakers over 5G networks.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘As of now, any country </strong>looking to dominate the digital future has to buy these superfast, ultrathin chips from either Taiwan or South Korea.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And Taiwan</strong> has the edge in both technology and market power.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘It is a small island of just 24 million people,</strong> but it is at the center of the battle for global technological supremacy.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Pound for pound,</strong> it is the most important place in the world.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘After World War II,</strong> only two major emerging economies managed to grow faster than 5 percent for five decades in a row and to rise from poverty into the ranks of developed economies.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘One was Taiwan,</strong> the other South Korea.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘They kept advancing up the industrial ladder</strong> by investing more heavily in research and development than did any of their rivals among emerging economies.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Now they are among the research leaders</strong> of the developed economic world as well.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘How did they accomplish this feat?</strong> Competent governments played a major role.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘South Korea</strong> nurtured giant conglomerates like Samsung and Hyundai, which exported consumer products under their own brand names.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Taiwan </strong>cultivated smaller companies focused on making parts or assembling finished products for foreign brands.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Today</strong> the flexibility goes a long way toward explaining its success.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Taiwan</strong> always managed to stay near the cutting edge, at first by borrowing technology from Western nations.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘As early as the 1970s,</strong> electronics had <a href="http://press-files.anu.edu.au/downloads/press/p94971/pdf/article07.pdf" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">replaced textiles </a>as its leading manufacturing industry.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Through every phase of the computer revolution,</strong> from PCs to software to the mobile internet, Taiwanese factories managed to retool fast enough to remain important global suppliers.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Inspired by Silicon Valley,</strong> Taiwan’s government in 1980 set up the first of its science parks.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Each park</strong> would have its own tech-focused university, and the government offered bonuses for Taiwanese-born engineers to return home from other countries to work there.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Mixing overseas experience with young local graduates,</strong> the science parks became hothouses for entrepreneurial start-ups.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘A few start-ups</strong> went on to become giant companies, though still relatively unknown to the global public.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘By the 2010s a Taiwanese company,</strong> Foxconn Technology, was assembling <a href="https://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">40 percent </a>of the world’s consumer electronic products, using plants in Asia, Europe and Latin America.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Today Taiwanese companies</strong> are major suppliers of a wide range of parts — smartphone lenses, e-paper displays — and the indispensable suppliers of computer chips.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘One of the Taiwanese government’s early star recruits was Morris Chang,</strong> a graduate of the Massachusetts Institute of Technology and a veteran of Texas Instruments.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Tasked with building a semiconductor industry,</strong> Chang reviewed Taiwan’s strengths and weaknesses, and rejected the idea of trying to go head-to-head with global brands like Intel.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Instead,</strong> he built the world’s first chip foundry, Taiwan Semiconductor Manufacturing Company, or T.S.M.C.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Much like the Taiwan contract manufacturers</strong> that once made toys and textiles, a “pure foundry” like Mr. Chang’s stayed in the background, cranking out chips for global brands rather than its own devices.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Today foundries</strong> are a small corner of the <a href="https://www.wsts.org/76/Recent-News-Release" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">$430 billion </a>global chip market, but all of the most advanced chips come from foundries.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And two-thirds of foundry production comes out of Taiwan,</strong> most of it from T.S.M.C.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Intel fell behind </strong>the leaders this year because of production delays.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That left only two real competitors standing:</strong> Samsung and T.S.M.C.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Both introduced</strong> five-nanometer chips this year and plan to introduce the first three-nanometer chips in 2022.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Going forward,</strong> many tech analysts predict that Taiwan’s business model gives it a clear edge.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Most customers</strong> prefer a pure foundry that does not compete with them to design chips or build devices, and only Taiwan offers this service.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That is a big reason Apple</strong> has been switching from Samsung to T.S.M.C. for the processing chips in the iPhone and why Intel is expected to outsource production of its most advanced chips mainly to T.S.M.C.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Taiwan</strong> has tried to position itself as the “Switzerland” of chips, a neutral supplier, but it increasingly finds itself at the center of the jousting between China and the United States.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘U.S. sanctions</strong> against China’s leading smartphone maker, Huawei, were designed in part to block Huawei’s access to chips from T.S.M.C. Beijing <a href="https://www.cnbc.com/2020/09/14/china-semiconductor-industry-tries-to-catch-up-with-us-chip-makers.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">responded </a>by accelerating a campaign to build its own advanced chip plants on Chinese soil.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And the Trump administration</strong> countered by inviting T.S.M.C. to build <a href="https://www.nytimes.com/2020/05/14/technology/trump-tsmc-us-chip-facility.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">a U.S. chip fabrication plant</a>, which will be in Arizona.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In this contest,</strong> it is not clear which superpower has the upper hand.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China</strong> still relies more heavily on imports and foreign technology, but the United States is investing less aggressively in local production, and the Arizona plant won’t be nearly big enough to fill the gap.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Unlike Taiwan’s other factories,</strong> which are scattered worldwide, its chip fabrication plants are concentrated on its home island, just 100 miles off the mainland coast of China.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In the event of military conflict or rising tension, </strong>U.S. access to those chip fabrication plants could be vulnerable to missile threat or naval blockade.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/4jblvU?track_p_id=09Hfetq_oq3vItKKdxKDFh5" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/Q7K3LvBpUHwYzkoXdXm2WUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:41px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/4jblvU?track_p_id=9UJYkGsK5p9Hfetq_5oeMPk" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'Taiwan, Biden and China’s High-Tech Ambitions'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Bloomberg</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘As Biden ponders which path to choose on China’s technological ascent, it increasingly looks like Taiwan may play an outsized role in those deliberations.’ </strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘What’s going on</strong> at China’s largest chipmaker?’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Semiconductor Manufacturing International Corp.</strong> is trying to clarify the intentions of a top executive after reports he’d submitted his resignation, apparently <a href="https://www.bloomberg.com/news/articles/2020-12-16/top-chinese-chipmaker-plunges-after-reports-co-ceo-abruptly-quit" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">miffed</a> the company appointed a vice chairman without consulting him.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘What may seem like a little corporate intrigue</strong> in fact matters to China and the world.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The state-backed company</strong> lies at the heart of Beijing’s intentions to <a href="https://www.bloomberg.com/news/articles/2020-10-21/the-u-s-china-conflict-over-chips-is-about-to-get-even-uglier" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">build</a> a world-class semiconductor industry free of U.S. technology.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Co-Chief Executive Officer Liang Mong Song</strong> was seen as key to SMIC’s ambitions of eventually matching industry leaders Samsung or TSMC:</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘SMIC shares sank</strong> almost 10% on news of his apparent departure.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘SMIC</strong> is also at the forefront of navigating U.S.-China ties that have taken a dive during Donald Trump’s presidency.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Washington recently labeled SMIC</strong> a national security threat, threatening to cripple its access to crucial components.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘SMIC and Huawei Technologies</strong> are Chinese <a href="https://www.bloomberg.com/news/articles/2019-12-17/how-huawei-landed-at-the-center-of-global-tech-tussle-quicktake" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">national champions</a>, central to President Xi Jinping’s plans to become self-sufficient in future-oriented technologies from AI to 5G and autonomous vehicles.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Semiconductors</strong> lie at the core of all these developments.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The incoming administration of Joe Biden</strong> will now decide if SMIC is hobbled or allowed to continue its advance.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The role of democratically-governed Taiwan,</strong> which China regards as its territory, is another factor.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Liang is an alumnus of Taiwan’s TSMC,</strong> the world’s leading manufacturer of cutting-edge chips, underscoring how key the island is to China’s development.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘As Biden ponders which path to choose</strong> on China’s technological ascent, it increasingly looks like Taiwan may play an <a href="https://www.bloomberg.com/news/articles/2020-12-07/apple-preps-next-mac-chips-with-aim-to-outclass-highest-end-pcs?sref=nS0sgUem" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">outsized</a> role in those deliberations.’ </p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">4.  China Economic Policy 2021 </span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/8JldhI?track_p_id=080ye8U_jKM4KkXBNtsMdXW" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/4q8YTRvoY7LYzXxssuZgBUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:41px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/8JldhI?track_p_id=6D1aXUn80ye8U_2RbX3p%40xw" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'Economic Policy Likely Less Accommodative Than Expected in 2021' </a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td><a href="http://sco.lt/8JldhI?track_p_id=080ye8U_d6KcuqCSHyKBX3B" target="_blank" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/tQsozT0aRp2Tewt-DhPbqzl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display:block; width:100%; border:none; height:auto"></a></td></tr><tr><td style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">MacroPolo</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Houze Song</strong> | MacroPolo</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘There will likely be more fiscal consolidation in 2021, which means that fiscal spending will become more conservative, putting a drag on growth.’  </strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘A central theme </strong>of this year’s Central Economic Work Conference (CEWC) will likely focus on the implementation of the recently announced 14th Five–Year Plan (FYP) that starts in 2021.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This means the policy direction</strong> will center on supply side structural reforms, such as innovation, improving the business environment, and addressing inequality.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Meanwhile,</strong> de-risking and deleveraging is back on Beijing’s agenda, which implies that demand-side policies will be relatively restrictive as well.’  </li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Combined,</strong> this policy direction should inject some caution into the latest bullish growth forecasts for 2021, since the signal is still deemphasizing growth.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In fact,</strong> President Xi Jinping has already set <a href="https://news.sina.com.cn/c/xl/2020-11-03/doc-iiznezxr9714839.shtml" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">expectations on growth</a> by elaborating on why the 14th FYP doesn’t contain an explicit growth target as in the past.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It appears that Xi believes </strong>downplaying the growth target will help Beijing focus on improving productivity and avoid constantly diverting resources to prop up growth.’   </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘This apparent shift in emphasis</strong> from focusing on recovery to structural reforms takes place in a relatively deflationary environment.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘For example,</strong> November CPI is the weakest it has been in years.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Meanwhile,</strong> fewer migrants have so far managed to find jobs, suggesting there is still sizeable slack in the labor market.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In other words,</strong> the supply side still has a lot of potential for recovery.’  </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Yet unleashing that supply-side potential</strong> to support the recovery crucially depends on how accommodative policy will be, especially in the first half of 2021.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This is why the direction of policy </strong>from the Central Economic Work Conference will matter—prioritizing supply side reforms will naturally mean less attention paid to supporting growth.’  </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘At the same time,</strong> the demand side picture also does not look particularly rosy for growth, as de-risking climbs back to a top priority and as Beijing emphasizes economic security—including supply chain integrity, indigenous technology development, and financial stability—as an expansive and guiding principle.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Just last month,</strong>Ding Xuexiang, Xi’s chief of staff, instructed officials to treat <a href="http://cpc.people.com.cn/n1/2020/1120/c64094-31937699.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">tail risks</a> as if they are high probability events.’  </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Supply chains and technology decoupling</strong> have attracted much attention.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But it is the renewed emphasis on financial risk</strong> that will have the largest near–term impact on growth because it will lead to an aggressive withdraw of fiscal stimulus.’ </li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That’s because this year’s stimulus</strong> further increased local fiscal deficits, exacerbating existing <a href="https://macropolo.org/digital-projects/china-local-debt-hangover-map/" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">fiscal vulnerabilities</a>.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Reports of debt-fueled financing</strong> of <a href="http://economy.caixin.com/2020-12-14/101638976.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">white elephant </a>projects have once again alarmed Beijing.’  </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘So Beijing</strong> has recently signaled that policy needs to revert back to <a href="http://www.xinhuanet.com/politics/leaders/2020-12/11/c_1126850644.htm" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">proactive mitigation of risk</a> rather than simply preventing it, putting local government debt front and center once again.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But unlike</strong> the disruptive deleveraging campaign of 2017-2018, Beijing will likely employ a more targeted approach rather than one that was across the board.’ </li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘As a result,</strong> there will likely be more fiscal consolidation in 2021, which means that fiscal spending will become more conservative, putting a drag on growth.’  </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In general,</strong> the economic signals from Central Economic Work Conference will likely be broadly growth negative, even as the post-Covid recovery remains incomplete.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div></td></tr></tbody></table></td></tr></tbody></table></div>

Traitors Everywhere!

December 12, 2020

<div style="background-color:#f5f5f5; margin:0 auto; padding:0; text-align:center;"><table cellpadding="0" cellspacing="0" width="100%" style="background-color: #f5f5f5; text-align: center;"><tbody><tr><td><table cellspacing="0" cellpadding="0" style="width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h1 style="font-family: 'Lato';font-size: 26px;line-height: 36px;font-weight: 400;color: #001544;letter-spacing: 0.1px;display: inline-block;margin-block-end: 0.5rem;margin-inline-start: 0px;margin-inline-end: 0px;"><strong style="font-weight: bold">Greetings!</strong></h1><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">In this issue:</strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">1. Lock Him Up!</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Jimmy Lai Charged Under Hong Kong Security Law'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Hong Kong media tycoon Jimmy Lai used tabloid and Twitter to push for illegal sanctions against local and Chinese authorities, prosecutors say'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'HK anti-govt figure Lai charged under national security law; ‘severe sentence’ highly likely'</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">2. China, Wall Street, & the Art of Market Entry</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'China Has One Powerful Friend Left in the U.S.: Wall Street'</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">3. China, Wall Street, & the Art of the Spin</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'China Censors Viral Boast of Influence Over Wall Street, Biden'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Tucker Carlson: Our elites' collusion with China is real and widespread'</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">4. Riding the Default Wave</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Investors Are Learning to Live with China’s Corporate Defaults'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'No Guarantees - China’s Bond Market is Jolted by Some Surprising Defaults'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Guaranteed Government Bailouts: Is the End Nigh?'  </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">5. Katherine Tai & the Biden Trade Agenda</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Biden Can Make American Trade Deals Great Again'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Biden-Harris Transition Announcement: USTR'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Katherine Tai on Trade Policy'</li></ul><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">CHINADebate, the publisher of the China Macro Reporter, aims to present different views on a given issue.</strong></em></h2><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">Including an article here does imply agreement with or endorsement of its contents.</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"> <strong style="font-weight: bold">In 1992,</strong> before China had formally opened its life insurance market to foreign companies, AIG was unexpectedly granted a branch license to do business in Shanghai.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">All other insurers</strong> immediately stepped up their efforts to likewise be allowed to enter the market.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">But AIG</strong> had laid the groundwork, and the others hadn’t.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">In the late 1980s,</strong> when Zhu Rongji was mayor of Shanghai, AIG had sponsored a McKinsey study to help plan Shanghai’s ascent to become a world-class city.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">AIG had financially-backed</strong> the building of the first contemporary, multi-use complex in Shanghai since 1949, the Shanghai Center.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">AIG had granted a scholarship</strong> to Mayor Zhu’s child to study abroad.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">AIG had purchased at auction </strong>(this could have been after the license) for $500,000 artifacts looted from the Summer Palace during the Boxer Rebellion, which AIG president, Hank Greenberg, then presented to China.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">And more things</strong> I am sure than I remember both for Shanghai and China.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">AIG had bet</strong> on the right horse.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">In 1991,</strong> Zhu became vice-premier.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">And as mentioned got a license </strong>well-before any other firms were invited to apply.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">I remember talking</strong> with a senior executive at one of those firms who recounted seeing, before the granting of the AIG license, Hank Greenberg and Henry Kissinger together entering the offices of top finance officials.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">“How can I beat that,”</strong> he said.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">AIG has carried out </strong>a well-planned and ultimately successful campaign.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">I started my boutique investment bank,</strong> RiddellTseng, in 1988 in Taipei with aim of helping foreign insurers enter the Taiwan market – then a notoriously torturous and often unsuccessful endeavor.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">When China opened up,</strong> my clients said let’s go.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">The difficulties I encountered there </strong>were entirely different from those in Taiwan.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">In life insurance, </strong>the competition to get an invitation to apply for a license was fierce. (A firm couldn’t just apply in those days, it had to be invited – and only two a year received invitations.)</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Learning from AIG the field of competition</strong> became trying to outdo each other with favors to China.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Firms, for example, </strong>built or sponsored schools and medical facilities, even orphanages; gave endowments to graduate schools; and their CEOs joined the boards of top business schools. And training, always a lot of free training.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">All by way of saying that China</strong> has always been adept at squeezing benefits out of foreign financial services firms (and other industries as well of course) in exchange for a crack at the Chinese market.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Saying ‘just be patient,</strong> you’ll get your shot. In the meantime how about our seconding some more actuaries to your company for training’.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Fast forward a few decades. </strong>I wasn’t surprised when I read in 'China Has One Powerful Friend Left in the U.S.: Wall Street' (<em style="font-style: italic">WSJ</em>) that:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In February 2018,</strong> Beijing’s chief trade negotiator was in Washington to try to avert a trade war.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Before meeting his U.S. counterparts,</strong> he turned to a select group of American business executives—mostly from Wall Street.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">“We need your help,”</strong> Vice Premier Liu He told guests gathered in a hotel near the White House, according to people with knowledge of the matter.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Looking for allies in trade talks</strong> with the Trump administration, Mr. Liu dangled a prize, the people say:’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Beijing offered</strong> to give U.S. financial firms a new opportunity to expand in China.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The get-together helped turn Wall Street</strong> into one of the biggest cheerleaders for a deal.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In the trade agreement</strong> that was eventually signed in January, China’s financial opening stood out as a prominent concession.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Showing as always whether in financial services</strong> or any other industry, it pays to be a ‘Friend of China.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold"> </strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">But I was surprised a couple of days</strong> later when a friend, a former partner in a major Wall Street investment bank, sent me a clip of ‘The Tucker Carlson Show’ on Fox News. Mr. Carlson had picked up on a speech given by Di Dongsheng<strong style="font-weight: bold">,</strong> a professor at Renmin University, who said, according to <em style="font-style: italic">Bloomberg</em>, among many other things:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">“We have a network of ‘China’s old friends’ on Wall Street,</strong> who had access and control over the D.C. politicians,” Di said, adding that those connections failed to help during the trade war because “Wall Street can’t control Trump.”</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Di, </strong>bragged about Beijing’s sway over Wall Street and Biden’s son Hunter and said: “Biden is back! Our old game is back.” ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Carlson seized</strong> on these comments on his Monday broadcast as proof that U.S. elites have been working on behalf of China,’ <em style="font-style: italic">Bloomberg</em> reported.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘By Thursday,</strong> video of the talk had been removed from Chinese social media and video platforms.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Even the firebrand </strong><em style="font-style: italic"><strong style="font-weight: bold">Global Times</strong></em><strong style="font-weight: bold"> editor, </strong>Hu Xijin, tweeted, “There are some Chinese scholars who like to brag and spice-up tales about their ties with high-level figures to seek attention and promote oneself.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Mr. Carlson</strong> spun this speech, saying:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Top leaders in American government and business </strong><em style="font-style: italic">have</em> been compromised by a foreign power that seeks to undermine our country and our democratic system.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This is as close</strong> to a smoking gun as we have ever seen.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Mr. Carlson,</strong> that gun has been smoking for as long as I have been doing business in China – and that’s a long time.</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"> </p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">If you don’t follow finance in China,</strong> you may have missed a trend that may portend serious reform in the industry: </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Beijing is allowing a wave of defaults</strong> by state-linked companies in the country’s $15 trillion credit market.’ (<em style="font-style: italic">Bloomberg)</em></li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In China, about 96%of onshore credit ratings</strong> are the equivalent of investment-grade.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">“2021 could be an inflection point”</strong> for the introduction of a “genuine credit risk mechanism in China.” ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘A more accurate pricing of risk</strong> gives buyers of bonds greater transparency in a relatively opaque economy.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That would boost the allure of Chinese debt,</strong> drawing more inflows, which in turn would help reduce the reliance of the nation’s capital markets on the government.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">But, as he often does,</strong> Houze Song of MacroPolo, revealed the deeper implications:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘One of the main distortions</strong> in the Chinese economy is that local state-owned enterprises (SOEs) can borrow at artificially low interest rates, which affects credit allocation throughout the economy.’ </li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Investors widely believe that local governments</strong> will always bail out troubled firms, an implicit guarantee that meant investors did not need to price in the risk of default.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This is why the recent spate of local SOE defaults</strong> sent jitters among investors, because it appears that the previous assumption no longer held and a wholesale repricing of risk is in order.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">But ‘declaring the end</strong> of the implicit guarantee is still premature for several reasons.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘While the impact of this case </strong>could well lead to a systemic repricing of bonds, it has not shaken the foundation of the local government implicit guarantee.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That foundation</strong> is built on bank lending, which is about five times larger than bonds as a source of local financing.’ </li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘So long as the relationship</strong> between local governments and banks holds, a form of implicit guarantee will persist.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Stay </strong>tuned. </p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><br></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">President-elected Biden</strong> named Katherine Tai to be the U.S. Trade Representative.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Given the praise</strong> for the pick and her background, she seems qualified (although I would have preferred someone with more heft).</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Not knowing much about Ms. Tai,</strong> I looked for any public comments she had made on trade policy and China.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">I found a Center for American Progress</strong> webcast she participated in November.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Goodness knows</strong> that I have gotten tongue-tied in similar forums. But, then, I’m not up for the USTR post.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">I have transcribed </strong>her comments on China here.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">And…well,</strong> have a look and make your own judgment.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Same for a WSJ op-ed by Robert Zoellick.</strong> </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Believe me,</strong> I only included it because Mr. Zoellick wrote it – and that makes it important – certainly not for the deep insights.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"> </p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Finally, the news</strong> that I had been watching for finally appeared:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Jimmy Lai,</strong> 73-year-old billionaire and media magnate, has been formally charged under Hong Kong’s National Security Law.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">He faces</strong> life imprisonment.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">The Chinese Communist Party’s mouthpiece,</strong> the <em style="font-style: italic">Global Times</em>, says:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘He is a traitor,</strong> a criminal and a force of evil who has sowed violence and chaos in arguably one of the freest and most prosperous cities in the world.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">I say he’s a hero</strong> and incredibly courageous.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Looks as though Mr. Lai's indictment </strong>may be just the start. As the <em style="font-style: italic">Global Times </em>admits:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘As the Trump administration,</strong> which has been severely confronting with China over Hong Kong affairs, has now entered its transition period, observers see this as the window of opportunity to continue consolidating the victorious fruits of the national security law for Hong Kong, which aims at secessionists like Lai and Joshua Wong.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And in the coming months,</strong> more reforms in the law enforcement, legal, education and civil affairs sectors are expected to be accelerated to "clean up the mess" left by anti-government rioters in the Chinese city.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom:20px;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">1. Lock Him Up!</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7CoFPs?track_p_id=6lEU6rV5gpUnG_BfSScZiJy" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/3QKIJ28TXRxlm_PNLipujEi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/7CoFPs?track_p_id=d6ruuz53tWsERp5gpUnG_ps" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'Jimmy Lai Charged Under Hong Kong Security Law'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td><a href="http://sco.lt/7CoFPs?track_p_id=ecuWKwgKnmxDcnU5gpUnG_o" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/IdHpzTQ7sf3_XaszBee62Tl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display:block;width:100%;border:none;height:auto;margin-top: 10px;"></a></td></tr><tr><td style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The New York Times</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Vivian Wang & Chris Buckley</strong> | The New York Times</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">“This is a show of defiance telling the world that in spite of the sanctions and so forth, there is no possibility that they would relax this tight regime.”</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In two strokes unveiled on Friday,</strong> the Chinese Communist Party laid out in stark relief the rapidly shrinking space for speech and independent journalism in China.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In Hong Kong,</strong> the police said on Friday that Jimmy Lai, the outspoken founder of an ardently antigovernment newspaper, had been charged under the city’s new national security law with colluding with foreign forces.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The police</strong> did not specify what Mr. Lai was accused of having done to violate the security law.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Mr. Lai was already in jail</strong> after <a href="https://www.nytimes.com/2020/12/03/world/asia/jimmy-lai-hong-kong.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">being denied bail on unrelated fraud charges</a>, a decision he is appealing.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But because of the charge under the national security law,</strong> which grants the authorities sweeping powers to hold defendants without bail, it is unlikely that he will win release.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘As written,</strong> the law is not supposed to be retroactive.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And since it was imposed,</strong> Lai <a href="https://www.pbs.org/newshour/show/hong-kongs-jimmy-lai-on-life-under-new-national-security-law" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">has said </a>that he would be more careful about his words, shying away for example from explicit requests to American lawmakers.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The move against Mr. Lai,</strong> the most high-profile person to be charged under Hong Kong’s new law, was not a surprise.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘State-run news outlets</strong> have railed against him as a “black hand” behind last year’s protests, pointing to his <a href="https://www.scmp.com/news/hong-kong/politics/article/3017868/beijing-foreign-office-slams-hong-kong-tycoon-jimmy-lai-and" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">trip last year to the United States </a>to lobby Vice President Mike Pence and Secretary of State Mike Pompeo for action against China. Chinese officials have openly thirsted for him to be punished.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That call was answered in August,</strong> when Mr. Lai was arrested on suspicion of violating the security law, and police officers <a href="https://www.nytimes.com/2020/08/09/world/asia/hong-kong-arrests-lai-national-security-law.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">raided the headquarters of Apple Daily, his newspaper</a>.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The indictment on Friday</strong> stems from that arrest.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Under the national security law,</strong> court proceedings can be held behind closed doors, and defendants can even be removed to mainland China to stand trial.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘If convicted,</strong> Lai could face up to life in prison.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Hours later,</strong> Bloomberg News disclosed that plainclothes security officials had earlier that week detained Haze Fan, a Chinese staffer in Beijing, also on potential national security violations.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Chinese officials said only that Ms. Fan,</strong> who had been taken four days earlier from her apartment, was accused of “criminal activities that jeopardize national security,” <a href="https://www.bloomberg.com/news/articles/2020-12-11/chinese-authorities-detain-bloomberg-news-beijing-staff-member" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">according to Bloomberg’s report</a>.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In the mainland,</strong> the news of Ms. Fan’s detention sent ripples of disquiet among foreign news outlets, which have already been beleaguered by <a href="https://www.nytimes.com/2020/03/18/world/asia/china-expels-journalists.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">expulsions of journalists </a>and tightening reporting restrictions.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘But both cases</strong> made clear how potent the party’s aggressive use of national security concerns has been in spreading fear, both among its own people and in foreign organizations.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Pro-democracy activists in Hong Kong</strong> said the indictment of Mr. Lai was a clear warning that Beijing intended to use the security law, which was <a href="https://www.nytimes.com/2020/06/29/world/asia/china-hong-kong-security-law-rules.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">just enacted in June</a>, to silence dissent and erode free speech.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Mr. Lai</strong> had been <a href="https://www.nytimes.com/2019/08/23/world/asia/jimmy-lai-hong-kong-protests.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">one of the most internationally recognized faces </a>of last year’s massive pro-democracy protests, pouring his fortune and his platform into supporting them.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Many supporters of democracy</strong> in once-freewheeling Hong Kong have long feared that the Communist Party is seeking to turn the semiautonomous territory into just another mainland city.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Friday’s dual revelations</strong> showed some of them just how much the differences between the two places had collapsed.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘But Claudia Mo,</strong> a former pro-democracy lawmaker, said many believed the authorities were merely looking for a premise on which to shut down Apple Daily, which has continued to needle the government even after the security law was enacted.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “This seems likely a key part </strong>of their ideological control over Hong Kong,” Ms. Mo said.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “They hate Lai’s high political profile </strong>and find his media influence more than bothersome.” ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Mr. Lai’s indictment and Ms. Fan’s detention </strong>come at a potentially sensitive time for China geopolitically.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China has come under heavy fire</strong> from Western countries, especially the United States, Britain and Australia, for its new constrictions on Hong Kong.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Communist Party</strong> has aggressively rejected those criticisms.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But some officials and state newspapers</strong> have also indicated that they would seek a reset with the United States under Mr. Biden — a reset that these moves could endanger.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘But Willy Lam,</strong> a professor of Chinese politics at the Chinese University of Hong Kong, said China’s leader, Xi Jinping, was determined to broadcast strength against “the so-called bullying and intimidation from the U.S. and the Western world.” ’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">“This is a show of defiance,”</strong> Professor Lam said of the charge against Mr. Lai, “telling the world that in spite of the sanctions and so forth, there is no possibility that they would relax this tight regime.” ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/6kIP3Y?track_p_id=e2hNUUtUXBSCETU7zYhgM_I" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/fpGU-wSZv6h37ihY1x6e3Ui__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/6kIP3Y?track_p_id=7ao6cOmY7zYhgM_mK2tknh2" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'Hong Kong media tycoon Jimmy Lai used tabloid and Twitter to push for illegal sanctions against local and Chinese authorities, prosecutors say'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">South China Morning Post</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘According to prosecutors, Lai called for overseas countries to “voice out and take action” over Beijing’s suppression in a tweet tagging United States Secretary of State Mike Pompeo, even after the national security law came into force.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Hong Kong media tycoon </strong><a href="https://www.scmp.com/topics/jimmy-lai" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">Jimmy Lai</strong></a><strong style="font-weight: bold"> Chee-ying</strong> used his <em style="font-style: italic">Apple Daily</em> tabloid and his Twitter account to call for sanctions against local and mainland Chinese authorities, according to a document prosecutors submitted to court on Saturday.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The 17-page filing,</strong> obtained by the <em style="font-style: italic">Post</em>, was submitted to West Kowloon Court where Lai was charged with one count of colluding with foreign powers, an offence under the Beijing imposed on Hong Kong in June.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Lai, the 73-year-old founder</strong> of Next Digital that owns <em style="font-style: italic">Apple Daily</em>, was handcuffed and chained around the waist while being escorted to court.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘He was denied bail</strong> and is expected to spend the coming four months in detention while police comb through his social media posts and examine his overseas visits to gather evidence.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘According to prosecutors,</strong> Lai called for overseas countries to “voice out and take action” over Beijing’s suppression in a tweet tagging United States Secretary of State Mike Pompeo, even after the national security law came into force.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In another tweet,</strong> he urged the US to “be lenient” towards young Hongkongers seeking asylum in the country.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Prosecutors</strong> also targeted Lai’s commentaries published in his newspaper, in which he said he believed international sanctions against Beijing over the new law would be more severe than the penalties imposed over the 1989 Tiananmen Square crackdown.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘According to the filing,</strong> <em style="font-style: italic">Apple Daily</em> also hosted online chats with prominent guests such as Nicholas Kristof, a US-based journalist, and Mark Clifford, executive director of the Asia Business Council and former editor-in-chief of the <em style="font-style: italic">Post</em> more than a decade ago.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Prosecutors said Lai</strong> would discuss how he thought Western countries would unite against China and why the West should be on guard against Chinese President Xi Jinping – whom he called Mao Zedong No 2.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Some of the allegations</strong> also covered activities carried out before the national security law was enacted on June 30, including interviews he did with American news networks Fox News and CNN and a meeting with US Vice-President Mike Pence.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The document</strong> also noted Lai had 120,000 Twitter followers and pointed to prominent individuals he followed such as Pompeo and Taiwanese President Tsai Ing-wen, as well as Benedict Rogers and Luke de Pulford, from concern group Hong Kong Watch based in Britain.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Lai was not required</strong> to enter a plea at this stage.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/5D8NhQ?track_p_id=6Q5o6pP6wqA1e_ADp4HvNXM" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/TMRELHqhsIAO-3JasyRka0i__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/5D8NhQ?track_p_id=dkL6gLt41VXfhU6wqA1e_gR" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'HK anti-govt figure Lai charged under national security law; ‘severe sentence’ highly likely'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The Global Times</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘He is a traitor, a criminal and a force of evil who has sowed violence and chaos in arguably one of the freest and most prosperous cities in the world.’</strong></em></h2><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><em style="font-style: italic"><strong style="font-weight: bold">The Global Times is a daily newspaper under the auspices of the Chinese Communist Party's People's Daily newspaper.</strong></em></h3><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Anti-government media tycoon in Hong Kong Jimmy Lai</strong>, deemed as a "modern-day traitor" for his notorious acts and deeds in instigating one of the most violent and chaotic riots in the city in 2019, was officially charged under the national security law for Hong Kong.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘After an in-depth investigation</strong> by the National Security Department of the Hong Kong Police, the 72-year-old man was charged with an additional offense of "collusion with a foreign country or with external elements to endanger national security," the Hong Kong Police Force (HKFP).’<br></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Some Western media and political figures</strong> have been trying to portray Lai and his infamous Apple Daily newspaper as the spiritual leader of the so-called free press, which is considered as naïve thinking that fails to listen to the true voices of Hong Kong's people, experts said.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘To the fair-minded people</strong> familiar with the 72-year-old's words and actions - and the grave consequences of them for the roughly 7 million residents in the city - he is a traitor, a criminal and a force of evil who has sowed violence and chaos in arguably one of the freest and most prosperous cities in the world.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘He was arrested </strong>on August 10 by the HKPF, about 40 days after the enactment of the highly anticipated national security law for Hong Kong.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Being the most high-profile case,</strong> it also delivered a heavy blow to local secessionists, experts said.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Some legal experts</strong> considered that given Lai's infamous behaviors, it's highly possible that he could face a severe sentence under the national security law for Hong Kong, and "life imprisonment can't be ruled out," Tian Feilong, a legal expert at Beihang.’<br></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘As the Trump administration,</strong> which has been severely confronting with China over Hong Kong affairs, has now entered its transition period, observers see this as the window of opportunity to continue consolidating the victorious fruits of the national security law for Hong Kong, which aims at secessionists like Lai and Joshua Wong.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And in the coming months,</strong> more reforms in the law enforcement, legal, education and civil affairs sectors are expected to be accelerated to "clean up the mess" left by anti-government rioters in the Chinese city.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">2. China, Wall Street, & the Art of Market Entry</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/80ENOK?track_p_id=eVIt6ABzuoVwD6l5P0tKg_u" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/K9fKxwrt-0GqvuYSovNp30i__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/80ENOK?track_p_id=bYx32u2Bhvsf5P0tKg_1hhj" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'China Has One Powerful Friend Left in the U.S.: Wall Street'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td><a href="http://sco.lt/80ENOK?track_p_id=2j%405P0tKg_y2FRV2x4Zn2Di" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/hXbqz5rSapjwQKnO5KayeDl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display:block; width:100%; border:none; height:auto"></a></td></tr><tr><td style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The Wall Street Journal</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘Looking for allies in trade talks with the Trump administration, Mr. Liu dangled a prize, the people say: Beijing offered to give U.S. financial firms a new opportunity to expand in China.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The trade war</strong> presented a new opportunity for Wall Street.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Throughout the battle,</strong> Chinese leaders regularly counted on Stephen Schwarzman, the billionaire co-founder of private-equity firm Blackstone Group, Hank Paulson and John Thornton, another former Goldman senior executive, as go-betweens with the Trump administration.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In February 2018,</strong> Beijing’s chief trade negotiator was in Washington to try to avert a trade war.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Before meeting his U.S. counterparts,</strong> he turned to a select group of American business executives—mostly from Wall Street.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘ “We need your help,”</strong> Vice Premier Liu He told guests gathered in a hotel near the White House, according to people with knowledge of the matter.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘They included </strong><a href="https://www.wsj.com/market-data/quotes/BLK" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">BlackRock</a> <a href="https://www.wsj.com/market-data/quotes/BLK?mod=chiclets" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">BLK -0.47% </a>Chief Executive Larry Fink, David Solomon, then <a href="https://www.wsj.com/market-data/quotes/GS" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">Goldman Sachs Group</a>’s second-in-command, and <a href="https://www.wsj.com/market-data/quotes/JPM" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">JPMorgan Chase</a> & Co.’s Jamie Dimon, there as chairman of the Business Roundtable lobbying group.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Looking for allies in trade talks</strong> with the Trump administration, Mr. Liu dangled a prize, the people say:’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Beijing offered</strong> to give U.S. financial firms a new opportunity to expand in China.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The get-together helped turn Wall Street</strong> into one of the biggest cheerleaders for a deal.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In the trade agreement</strong> that was eventually signed in January, China’s financial opening stood out as a prominent concession.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘America’s money men</strong> have long held a special place in Beijing’s corridors of power, but until now their firms have had little to show for it.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Since the signing of the trade deal,</strong> JPMorgan will get full control of a futures venture in which it had a minority stake. Goldman Sachs and <a href="https://www.wsj.com/market-data/quotes/MS" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">Morgan Stanley </a>became controlling owners of their Chinese securities ventures. <a href="https://www.wsj.com/market-data/quotes/C" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">Citigroup</a>, meanwhile, won a custodian license to act as a safe keeper of securities held by funds operating in the country. And in August, BlackRock became the first foreign firm to win preliminary approval to start a wholly owned mutual-fund business in China, a potential admission ticket to a vast market of largely untapped mom-and-pop investors.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Despite the burst of activity,</strong> skeptics wonder whether Beijing will ever let Wall Street gain more than a foothold.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘They note</strong> that by delaying an opening for decades, the Communist Party has enabled Chinese institutions it largely controls to thoroughly dominate every sector in finance, from commercial and investment banking to private equity and asset management. Wall Street firms have little name recognition among average Chinese savers.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘As late and as limited as the opportunity</strong> is now, foreign financial firms are happy to get whatever perch they can:’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China is still the world’s fastest-growing market for financial services,</strong> at a time when their own margins are getting squeezed at home.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Their long-term lobbying efforts</strong>—including taking Beijing’s side in some heated disputes with the West—reflect their eagerness to crack the market.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In July,</strong><strong style="font-weight: bold">more than 40 American trade groups,</strong> representing industries from agriculture and pharmaceuticals to airlines, signed a letter urging Beijing to do more to implement the trade deal with Washington, which also laid out purchases of American airplanes, farm products, oil and others that China hasn’t yet made in full.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Unlike other business groups,</strong> Wall Street is pleased with how China has carried out its promises in January, according to people close to the industry.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘No group focused on banks and asset managers</strong> was among those who signed the letter.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Even after the January trade deal</strong> gave Wall Street what it had long sought, China’s financial markets remain highly regulated and Beijing still holds the key to who gets in.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Whether the Biden administration</strong> will help is an open question.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Senior Biden advisers</strong> say they want to de-emphasize financial firms’ access to the Chinese market in trade talks.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “Why, for example, should it be a U.S. negotiating priority</strong> to open China’s financial system for Goldman Sachs?” said Jake Sullivan, who has been tapped for national security adviser, in an article he co-wrote earlier this year.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘That view is becoming widely held in Democratic Party circles,</strong> including former Clinton Treasury Secretary Larry Summers, whose agency pushed for Chinese financial liberalization.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘He recently published a policy paper</strong> advising Mr. Biden “to be clear at the outset that you will not spend your scarce political capital or U.S. political capital on the commercial agenda of U.S. financial firms operating abroad where their success has almost no nexus with U.S. job creation.” ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">3. China, Wall Street, & the Art of the Spin</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/6ZQP7Q?track_p_id=cyEhyUHWTNlN27x7Smc_YVV" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/Q7K3LvBpUHwYzkoXdXm2WUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/6ZQP7Q?track_p_id=07x7Smc_5OigFVpnmbL3NdP" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'China Censors Viral Boast of Influence Over Wall Street, Biden'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td><a href="http://sco.lt/6ZQP7Q?track_p_id=07x7Smc_JRiDjRBAR6OSNlY" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/ivUbo4cTeSpPAlqzZ3ZKPzl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display:block; width:100%; border:none; height:auto"></a></td></tr><tr><td style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Bloomberg</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">“We have a network of ‘China’s old friends’ on Wall Street, who had access and control over the D.C. politicians.”</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘A Chinese professor’s speech</strong> boasting about Beijing’s influence over President-elect Joe Biden was removed from the country’s social media platforms after going viral in the U.S., underscoring how sensitive ties between the world’s two biggest economies are after strife under Donald Trump.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The speech by Di Dongsheng,</strong> a professor of international relations at Renmin University, was delivered in November, and boosted Monday after Fox News host Tucker Carlson talked about the remarks and Trump tweeted a clip.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Di, who was speaking at an annual event</strong> hosted by the nationalistic Chinese website Guan Video, bragged about Beijing’s sway over Wall Street and Biden’s son Hunter and said: “Biden is back! Our old game is back.” ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Carlson seized</strong> on the comments on his Monday broadcast as proof that U.S. elites have been working on behalf of China.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘By Thursday,</strong> video of the talk had been removed from Chinese social media and video platforms.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Di said that China</strong> “used to know people at the top” in the U.S. financial world.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “We have a network of ‘China’s old friends’ on Wall Street,</strong> who had access and control over the D.C. politicians,” Di said, adding that those connections failed to help during the trade war because “Wall Street can’t control Trump.” ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The incident</strong> illustrates the difficulty Biden faces crafting a China policy, after months of efforts by Trump and his supporters to paint the former vice president as soft on Beijing.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Such comments by a high-profile Chinese academic</strong> could add to the pressure on the incoming administration to take a harder line.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Di suggested that Biden’s son Hunter</strong> was a path to influence over the incoming president, feeding a narrative pushed by Trump and his supporters during the campaign.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “We just need to toss out</strong> some olive branch to signal some good will,” Di said.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Global Times Editor-in-Chief Hu Xijin,</strong> who also spoke at the Guan Video event, dismissed Di’s claims, commenting multiple times on Trump’s tweet.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “There are some Chinese scholars</strong> who like to brag and spice-up tales about their ties with high-level figures to seek attention and promote oneself,” he wrote.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “It’s unserious to judge China-U.S. relations</strong> with stories told by these kind of people.” ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td><a href="https://twitter.com/HuXijin_GT/status/1336484840275759107" target="_blank" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/pzWswbVXzSG_K1-3KPuO-jl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="display:block; width:100%; border:none; height:auto"></a></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/9N8uiu?track_p_id=8Z3Mgirde54E36U_snS13SL" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/ui0nxxsN-tiPVutKR7d3AEi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/9N8uiu?track_p_id=6bxyaYA54E36U_1yVN5RVDU" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'Tucker Carlson: Our elites' collusion with China is real and widespread'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td><a href="https://twitter.com/HuXijin_GT/status/1336484840275759107" target="_blank" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/lmWvKblFk7Sm0tS18ZV05zl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display:block; width:100%; border:none; height:auto"></a></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Fox News</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Tucker Carlson</strong> |Fox News</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘This is as close to a smoking gun as we have ever seen.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Top leaders in American government and business</strong> <em style="font-style: italic">have</em> been compromised by a foreign power that seeks to undermine our country and our democratic system.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It turns out that many of the very people</strong> who ranted so hysterically about Russia  were doing precisely what they claimed to decry.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘They were working on behalf</strong> of our chief global rival, the government of China.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘On Nov. 28, Di Dongsheng,</strong> a professor at Renmin University in Beijing, appeared on a Chinese television show about Wall Street and international trade.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Like so many in academia in China,</strong> Di is a servant of his country's government.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This video was deleted </strong>from Chinese social media soon after being uploaded, and here's why:’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><em style="font-style: italic"><strong style="font-weight: bold">‘DI DONSHENG (translation):</strong></em><em style="font-style: italic"> “The Trump administration is in a trade war with us, so why can't we fix the Trump administration? Why, between 1992 and 2016, did China and the U.S., use to be able to settle all kinds of issues? No mater what kind of crises we encountered ... things were solved in no time ... We fixed everything in two months. What is the reason? I'm going to throw out something maybe a little bit explosive here. It's just because we have people at the top. At the top of America's core inner circle of power and influence, we have our old friends.” ’</em></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘This is as close</strong> to a smoking gun as we have ever seen.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘So who are these people</strong> and how many of them work in our media and in our government?’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Well,</strong> Di didn't say precisely.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The problem</strong> came when Donald Trump was elected.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">After that,</strong> he says, everything changed.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><em style="font-style: italic"><strong style="font-weight: bold">‘DI DONGSHENG (translation):</strong></em><em style="font-style: italic"> “For the past 30 years, 40 years, we have been utilizing the core power of the United States ... Since the 1970s, Wall Street had a very strong influence on the domestic and foreign affairs of the United States, so we had a channel to rely on. But the problem is that after 2008, the status of Wall Street has declined, and more importantly, after 2016, Wall Street can't fix Trump. Why? It's very awkward. Trump had a previous soft default issue with Wall Street, so there was a conflict between them. But I won't go into details, I may not have enough time. So during the U.S.-China trade war they [Wall Street] tried to help. And I know that, my friends on the U.S. side told me that they tried to help, but they couldn't do much” ’.</em></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">The Chinese government,</strong> he says, has enormous influence on Wall Street, and that arrangement worked very well for a long time.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Then Donald Trump</strong> unexpectedly was elected in 2016 and Wall Street was infuriated.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">"Wall Street</strong> can't fix Trump," he said, but they tried.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">This gives</strong> the game away.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">4. Riding the Default Wave</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/914bMO?track_p_id=eoovOJPZ4uucnmp7AAl2c_4" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/Q7K3LvBpUHwYzkoXdXm2WUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/914bMO?track_p_id=6NQomaA7AAl2c_qaS%40CXJpQ" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'Investors Are Learning to Live With China’s Corporate Defaults'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td><a href="http://sco.lt/914bMO?track_p_id=eNtzZD1yxXoPwcw7AAl2c_M" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/aOczxxWvZnj7Zhr1HA1QIzl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display:block; width:100%; border:none; height:auto"></a></td></tr><tr><td style="padding: 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Bloomberg</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘Beijing is allowing a wave of defaults by state-linked companies in the country’s $15 trillion credit market.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Beijing is allowing a wave of defaults</strong> by state-linked companies in the country’s $15 trillion credit market.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This week,</strong> prominent chipmaker <a href="https://www.bloomberg.com/quote/FSINGZ:CH" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">Tsinghua Unigroup Co.</a>defaulted on $450 million of dollar debt triggering cross-defaults on another $2 billion -- equivalent to almost two-thirds of the total defaulted debt in China’s offshore bond market in 2019.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘While this may be bad news</strong> for the weakest state-owned enterprises, it’s an improvement for investors, the credit market and China overall.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘A more accurate pricing of risk</strong> gives buyers of bonds greater transparency in a relatively opaque economy.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That would boost the allure of Chinese debt,</strong> drawing more inflows, which in turn would help reduce the reliance of the nation’s capital markets on the government.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘State banks</strong> are among the biggest buyers of onshore corporate debt.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘ “For the first time</strong> we might have opportunity in the medium term to have a genuine local high-yield market, that’s what has been missing for years in China,” according to Jean-Charles Sambor, head of emerging markets fixed income at BNP Paribas Asset Management in London.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “2021 could be an inflection point”</strong> for the introduction of a “genuine credit risk mechanism in China.” ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In China, about </strong><a href="https://www.bloomberg.com/news/articles/2020-07-23/why-china-sought-help-with-credit-ratings-for-bonds-quicktake" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">96%</strong></a><strong style="font-weight: bold"> of onshore credit ratings</strong> are the equivalent of investment grade.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Yet the recent defaults </strong>are prompting investors to put a premium on state-owned firms, especially the weakest ones.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The average yield</strong> on riskier SOE bonds rose to a record 7.36% on Thursday.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Even top-rated SOEs</strong> are starting to feel some pain; the average yield on their bonds is about 5%. That’s up 32 basis points from a year earlier.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “Between the best and worst provinces</strong> and the best and worst SOEs there was a very limited difference in terms of credit risk, and this is changing,” Sambor said.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Authorities will be on guard</strong> to limit any broader impact from defaults, according to Thu Ha Chow, a portfolio manager at Loomis Sayles Investments Asia Pte.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “We do not expect regulators</strong> will allow for a disorderly sell-off to cause a systemic risk,” said Chow.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “What is important for China’s bond market development</strong> is for defaults to be resolved in a fast and predictable manner so that companies and investors can appropriately price risk rather than artificially avoid defaults which lead to moral hazard.” ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/5u7lh2?track_p_id=4VcEI6WF7rK_4q1faBMvf5Q" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/_WMiBTDcNqqcPnQt-JHFGUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/5u7lh2?track_p_id=2ni6WF7rK_3RS4i3MXxGHpR" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'No Guarantees - China’s Bond Market is Jolted by Some Surprising Defaults'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The Economist</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘But Yongcheng’s default has alarmed investors because it throws out the old rule-book that helped determine which groups would receive state support and which would be allowed to go bust.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘China’s credit-rating agencies</strong> do not disguise their love for the state.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Yongcheng Coal and Electricity’s state pedigree </strong>was at the top of a list of merits in a recent credit appraisal by ccxi, one such agency, which expressed its confidence in the group on October 10th with a top-notch aaa rating on a 1bn-yuan ($152m) bond.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Yongcheng’s default a month later</strong> on a different 1bn-yuan bond has sent a shockwave through China’s $14trn bond market.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The company paid</strong> overdue interest three days later, but not before investors dumped state-backed debt with links to Henan province, the region in central China where it is based.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The jarring news</strong> that a state group with a recent aaa-rating had defaulted halted at least 20bn-yuan-worth of planned debt issuance over the following week, as yields on state debt surged.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The concern was so great</strong> that a large state-owned company in neighbouring Shanxi province was forced to issue a rare statement to investors on November 14th pledging that the companies it controls would not default.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “The particular thing</strong> about this case was that it was completely unexpected,” said Charles Chang of S&P, another rating agency.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Investor panic</strong> has focused on Yongcheng, but there are signs of wider tumult.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Huachen Automotive,</strong> a carmaker owned by a provincial northern government, said on November 16th that it had sought restructuring after defaulting on a bond in October.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Tsinghua Unigroup,</strong> a technology firm controlled by Tsinghua University, failed to repay a 1.3bn-yuan bond on the same day.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The companies</strong> had enjoyed aaaand aa ratings, respectively.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘That state firms</strong> can default is no surprise.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Yongcheng</strong> is one of ten to have done so this year.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Regulators</strong> have realised they can no longer afford to bail out inefficient, loss-making companies.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘A small but steady stream</strong> of weak state firms have been allowed to default since 2015, part of a government plan to impose discipline on the market.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Defaults</strong> also make it possible to price in risk better, something foreign investors have struggled to do.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘As defaults</strong> have risen over the past three years, foreign investors have ploughed record sums into China’s bond market.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘But Yongcheng’s default</strong> has alarmed investors because it throws out the old rule-book that helped determine which groups would receive state support and which would be allowed to go bust.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Parent companies</strong> have been the strongest guiding light to date.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Yongcheng’s parent, </strong>for example, is one of Henan’s largest state-owned groups and is wholly owned by the province’s asset administrator, making Yongcheng state royalty in the region.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Huachen Automotive</strong> is owned by a similar entity.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Such proximity to powerful asset administrators</strong> used to give investors confidence that the state would swoop to the rescue at the first sign of distress. Not any more.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Scale </strong>also used to be important.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Large state groups</strong> have been valuable to cities and provinces because they give secure employment to tens of thousands of people.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Huachen Automotive</strong> alone has more than 40,000 employees.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Restructuring </strong>them would threaten jobs and social stability, but these are risks the government appears increasingly willing to take.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">“Parent company, size</strong>—these are the reasons people argue you should buy,” says Edmund Goh of Aberdeen Standard Investments, an asset manager. “This is starting to change, and people are going to be reading more of the details.” ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Investors and rating agencies </strong>will have to study state firms’ fundamentals, instead of relying on perceived government backing.’ </p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘S&P expects</strong> more defaults among large state groups that were once considered untouchable.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Zhu Ning,</strong> a professor at the Shanghai Advanced Institute of Finance, said that regulators may even launch “a crackdown on the rating agencies for better-informed ratings”.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The shift will prove awkward</strong> for local agencies, which are under pressure from state groups to hand out as many sparkling aaa ratings as possible.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/4jfek4?track_p_id=eqQYw%40hnxLDPbJO59HFoE_a" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/4q8YTRvoY7LYzXxssuZgBUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/4jfek4?track_p_id=5w3Xqz59HFoE_dB5QY%40je3f" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'Guaranteed Government Bailouts: Is The End Nigh?'  </a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td><a href="http://sco.lt/4jfek4?track_p_id=35Zk59HFoE_s3d3qZrY543I" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/m2sN6-f6kt7Pj0HPkIaDEjl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display:block; width:100%; border:none; height:auto"></a></td></tr><tr><td style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">MacroPolo</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Houze Song</strong> | MacroPolo</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘So even if bond holders start to discount the implicit guarantee, banks won’t be much deterred by these defaults because they can recover their lending to local SOEs in more ways than one. In fact, when regions have experienced large–scale defaults, bank lending actually increases relative to other forms of financing </strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘One of the main distortions</strong> in the Chinese economy is that local state-owned enterprises (SOEs) can borrow at artificially low interest rates, which affects credit allocation throughout the economy.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Investors widely believe that local governments</strong> will always bail out troubled firms, an implicit guarantee that meant investors did not need to price in the risk of default.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This is why </strong><a href="https://www.caixinglobal.com/2020-11-18/soe-bond-defaults-show-up-on-radar-of-chinas-top-economic-planner-101629472.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">the recent spate </strong></a><strong style="font-weight: bold">of local SOE defaults</strong> sent jitters among investors, because it appears that the previous assumption no longer held and a wholesale repricing of risk is in order.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘On the one hand,</strong> Beijing has been increasingly moving away from implicit guarantees on state assets and has become more tolerant of defaults.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This is ultimately a positive development</strong> for the Chinese economy because it gets rid of a major distortion.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But a sudden change to the prevailing belief</strong> of guaranteed bailouts invariably will be disruptive and spook markets.’  </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘On the other hand,</strong> declaring the end of the implicit guarantee is still premature for several reasons.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘For one,</strong> some of the latest defaults are not as surprising.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘As I’ve been highlighting,</strong> the deteriorating fiscal health of local governments has already <a href="https://macropolo.substack.com/p/houzes-two-fen-test" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">chipped away </a>at their ability to bail out local firms, particularly among the more <a href="https://macropolo.org/digital-projects/china-local-debt-hangover-map/" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">debt-laden provinces</a>.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Not only are those provinces</strong> less able to bail out firms, investors are also <a href="https://macropolo.substack.com/p/houzes-two-fen-test" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">less willing to </a>hold bonds of struggling firms.’     </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘More surprising was the case of Henan’s Yongcheng Coal,</strong> a gigantic triple-A rated SOE that <a href="https://www.caixinglobal.com/2020-11-13/default-by-henan-coal-mining-company-sends-tremors-across-china-101626996.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">suddenly defaulted</a> on its bond in early November.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That default roiled China’s bond market </strong>because it happened to a firm in a relatively fiscally sound province, upending the notion that defaults will be limited to financially struggling regions.’   </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘While the impact of this case </strong>could well lead to a systemic repricing of bonds, it has not shaken the foundation of the local government implicit guarantee.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That foundation</strong> is built on bank lending, which is about <a href="http://www.pbc.gov.cn/diaochatongjisi/resource/cms/2020/11/2020111616052956817.htm" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">five times larger </a>than bonds as a source of local financing.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Because bonds pale in comparison to bank financing, </strong>that also means bond investors are a much less important interest group than state banks for local governments.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘So long as the relationship</strong> between local governments and banks holds, a form of implicit guarantee will persist.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘First, banks have disproportionate influence</strong> over local finance because they provide around two–thirds of total credit and are the biggest holder of local government bonds.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This means local governments</strong> have reciprocal and entrenched relationships with banks and generally want to placate them.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘For instance,</strong> even a fiscally struggling local government controls many valuable resources, and it can award banks with fiscal deposits or financing opportunities for future infrastructure projects as compensation.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘So even if bond holders</strong> start to discount the implicit guarantee, banks won’t be much deterred by these defaults because they can recover their lending to local SOEs in more ways than one.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In fact,</strong> when regions have experienced large–scale defaults, bank lending actually increases relative to other forms of financing (see Figure 1, above).’  </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The recent SOE defaults</strong> may have rocked the bond market, and the eventual outcome will lead to some local SOEs paying higher interest rates.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But the local government implicit guarantee problem</strong> that distorts credit allocation has not been resolved.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘For that to happen will require</strong> a more fundamental reset of the relationship between local governments and banks.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That paradigm </strong>is starting to shift, but there is still quite a distance to go.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">5. Katherine Tai & the Biden Trade Agenda</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding:3.5%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><img height="50px" width="auto" alt="SourceLogo" src="https://assets-global.website-files.com/5c864c33af62620dca1373ac/5fc2c325b2be470b39241339_Malcolm%20Riddell.png" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><span style="color:#001544; text-decoration: none; border-bottom:none;">'Biden Can Make American Trade Deals Great Again'</span></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td><a href="http://sco.lt/8wX1HM?track_p_id=dy%40y13zd2sEFJR9IR0Va_Z2" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/dATOzOrryp0B6MRn_bJ8_Tl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display:block; width:100%; border:none; height:auto"></a></td></tr><tr><td style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The Wall Street Journal</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Robert Zoellick</strong> | former president of the World Bank (2007-12) and U.S. trade representative</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘Mr. Biden will have to defuse Donald Trump’s trade wars and connect his economic and foreign policies.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘President-elect </strong><a href="https://www.wsj.com/topics/person/joe-biden" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">Joe Biden</strong></a> probably wishes he could avoid trade policy. He can’t.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘To re-establish partnerships with allies,</strong> devise rules for a changing world economy, and prepare the American labor force for the future, Mr. Biden will have to defuse <a href="https://www.wsj.com/topics/person/donald-trump" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">Donald Trump</a>’s trade wars and connect his economic and foreign policies.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The press reported</strong> on Wednesday that Mr. Biden will nominate Katherine Tai, a talented trade lawyer with experience in Congress, to be U.S. Trade Representative.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Ms. Tai has an opportunity to reshape policy</strong> and realign trade politics.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Since 1947, America’s leadership</strong> has included setting the world’s trade agenda.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Yet last month, without U.S. participation,</strong> 15 other countries in the Asia-Pacific, including China and U.S. allies, signed a new Regional Comprehensive Economic Partnership to establish rules for the most dynamic 30% of the world economy.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Comprehensive and Progressive Agreement for Trans-Pacific Partnership,</strong> launched in 2018, drew from provisions in U.S. free-trade agreements. But President Trump dropped out.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘If for political reasons</strong> Biden decides not to rejoin President Obama’s Trans-Pacific Partnership, Mr. Biden could begin with a digital accord.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Countries around the world</strong> are negotiating the business standards of the future.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The new architects of international economics are</strong> adapting to changes in supply chains, including the move to digital platforms and services.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The U.S.</strong> has instead been preoccupied with raising tariffs.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘If the U.S. doesn’t show up for modern trade negotiations,</strong> it can hardly expect to set the rules.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Biden administration</strong> has an opportunity to build a new domestic coalition for trade.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Groups ranging from</strong> digital denizens to farmers know that economic isolationism is a loser.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Even so,</strong> Biden’s political advisers may be inclined to bury the trade topic to avoid fights with labor unions.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘A new Biden approach</strong> should highlight the digital economy, environmental goods and services, and health supplies, as well as intellectual property and agriculture.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘A Biden strategy</strong> also will need to face China.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The U.S. will gain leverage</strong> if it builds a liberalizing coalition connected with a modernizing agenda.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘China</strong> doesn’t want to be isolated.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The problem now is</strong> that Mr. Trump isolated America.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Mr. Biden</strong> shouldn’t double down on protectionism.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘He could package openness to trade</strong> with assistance to workers and an increase in the minimum wage.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Mr. Biden and Ms. Tai </strong>can redirect the future international economy by combining good trade policy and politics.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7N40US?track_p_id=elN53qb5s26UcAY6JhRPy_m" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/TLSKHpevFlJGCVD2nSRcmUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/7N40US?track_p_id=3C3U6JhRPy_TnfbwnETSQww" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'Biden-Harris Transition Announcement: USTR'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td><a href="http://sco.lt/6p08si?track_p_id=dvkD1E32sm4NaO5FDjLS_lN" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/9S8bZfLPl2HA2BRiYaVOsTl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display:block; width:100%; border:none; height:auto"></a></td></tr><tr><td style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><p style="margin: 0;font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong>'Katherine Tai</strong> is a dedicated, deeply respected public servant and veteran international trade expert who has spent her career working to level the playing field for American workers and families. Currently, Tai serves as the chief lawyer on trade to the Chairman and Democratic Members of the Committee on Ways and Means on matters of international trade as Chief Trade Counsel. In this role, she has secured key victories for workers in U.S. trade policy and has been praised by lawmakers and lawyers for her work. Prior to the Committee, Tai served in the USTR’s Office of the General Counsel, first as Associate General Counsel from 2007 to 2011 and then as Chief Counsel for China Trade Enforcement with responsibility for the development and litigation of U.S. disputes against China at the World Trade Organization (WTO).'</p><p style="margin: 0;font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong>'Before joining USTR,</strong> Tai worked in the international trade departments in various Washington, D.C. law firms. From 1996 to 1998, she lived and worked in Guangzhou, China teaching English at Sun Yat-Sen University as a Yale-China Fellow. Tai was born in Connecticut — the first American-born citizen in her family — and raised in the Washington, D.C. area.  She is a graduate of Yale University and Harvard Law School.'</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/6JcdrU?track_p_id=9eAbofYfxY587l5q_Rvd23f" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/6knk6uTQQ3UW67Lu4XBiCki__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/6JcdrU?track_p_id=9p4S4irHan587l5q_voiUeP" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'Katherine Tai on Trade Policy'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Center for American Progress</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Katherine Tai </strong>| Chief Trade Counsel, House Ways & Means Committee</h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Mara Rudman</strong> | Center for American Progress</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘We have to think about the fact that, yes, we are facing very stiff competition from China, but China is not going away.’</strong></em></h2><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Comments on China trade by Katherine Tai, President-elect Biden’s nominee for U.S. Trade Representative at an’ online discussion with a diverse group of progressive voices to chart a path forward on progressive trade policy’ held by the Center on American Progress on August 5, 2020.</strong></h3><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Mara Rudman:</strong> ‘Hi, Katherine. Let me turn to you now, and I'm going to ask you to focus particularly on China-related issues, given your experience and vantage point at the Ways and Means in the House, as well as a USTR, handling China trade enforcement.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘How would you characterize</strong> how the United States has approached economic and security competition with China, given the very strong competitor that China is at this point? And then would you have any kind of specific commentary on the current administration's approach in that respect as well?’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘How should we be thinking</strong> about this going forward?’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Katherine Tai:</strong> ‘So on your question on China, let me just start with also saying that I so appreciate that we are having this conversation and that, to me, this is an important indication that we are on a good path because we were talking about what a progressive vision for trade is.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘I think with respect to China,</strong> as a part of our trade landscape, what I would say about the dynamics on US-China competition, which has both economic elements and also strategic elements, which make it very challenging, but also incredibly important, is that the lessons that we have had over these most recent years in trying to formulate, articulate, and advance a progressive trade agenda should also be taken into consideration in the approach to China.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘And I think one of the most important lessons</strong> is to have robust political support, and that is within the Congress and also with the American people in terms of what you are going to do on trade.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘With the China issues,</strong> one of the really special aspects of the US-China trade dynamic is that traditionally you have really broad, robust bipartisan support on the issue of China and US-China competition.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘What I would say</strong> is we need to apply the same progressive principles to the US-China competitive aspect, which is to think hard about where the political support is in terms of rising up to all of the different China challenges, and also to be inclusive, which I think is a key part of progressive trade policy, in our strategy, and I think that also gets at the most critical part is we have to be really smart about what we are going to do here.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘So on the China issue</strong>, I think that it's not for fractured political support for taking steps.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘I think that there will be really robust,</strong> and we are seeing it, really robust political support for taking aggressive and bold steps with respect to how we compete with China.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘But what we need to do,</strong> and this will be my sort of oblique commentary on this administration's approach, is we have to be really strategic about it.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘We have to think about the fact</strong> that, yes, we are facing very stiff competition from China, but China is not going away.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And so I think</strong> that critically a good and progressive trade policy has to have both offensive and defensive elements.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘And on this,</strong> I would say that in terms of what we've experienced over these most recent years with this administration, they have been very strong on confronting China very aggressively, but I would characterize those measures as actually largely defensive.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And, again,</strong> you must have both defensive and offensive, but with respect to counteracting unfair trade practices, enforcing our trade rights, I see those primarily as defensive maneuvers.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That is to make sure that China</strong> is playing by the rules, or if not playing by the rules, that we are taking countermeasures.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘I think the offense</strong> has got to be about what we are going to do to make ourselves and our workers and our industries and our allies faster, nimbler, be able to jump higher, be able to be able to compete stronger and ultimately be able to defend this open democratic way of life that we have.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It is about more</strong> than just economics and economic values.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It is also about our political and our broader values,</strong> but there is a lot at stake, and I think that there is a lot of opportunity.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘There's clearly also</strong> a very, very great challenge.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div></td></tr></tbody></table></td></tr></tbody></table></div>

‘China Prefers to be Admired, but will Settle for Fear.’

December 9, 2020

<div style="background-color:#f5f5f5; margin:0 auto; padding:0; text-align:center;"><table cellpadding="0" cellspacing="0" width="100%" style="background-color: #f5f5f5; text-align: center;"><tbody><tr><td><table cellspacing="0" cellpadding="0" style="width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h1 style="font-family: 'Lato';font-size: 26px;line-height: 36px;font-weight: 400;color: #001544;letter-spacing: 0.1px;display: inline-block;margin-block-start: 0;margin-block-end: 0;margin-inline-start: 0px;margin-inline-end: 0px;"><strong style="font-weight: bold">Greetings!</strong></h1><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">In this issue:</strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">1. The DNI on China: 'China Is National Security Threat No. 1'</strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">2. China's Terms for the Biden Administration:  </strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'What Does China Think U.S.-China Relations Should Look Like?'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Cooperative Competition Is Possible Between China and the U.S.'</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">3. China Bullies Because It Works</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">‘China Prefers to be Admired, but will Settle for Fear.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'The Provocateur Driving China’s "Wolf Warrior" Pack' </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">4. The World China Wants</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'How Power Will—And Won’t—Reshape Chinese Ambitions'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'China: Present at the Creation of the Post-WW2 World Order'</li></ul><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">CHINADebate, the publisher of the China Macro Reporter, aims to present different views on a given issue.</strong></em></h2><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">Including an article here does imply agreement with or endorsement of its contents.</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Does China want to transform the global order </strong>to advance its own interests and to reflect its own image? That may be the most important question in geopolitics today,’ writes Oxford’s Rana Mitter.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Yet,’ he goes on,</strong> ‘the answers it elicits tend to reveal more about modern biases than they do about what a future Chinese superpower would look like.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">One answer is from John Ratcliffe:</strong> ‘As Director of National Intelligence, I am entrusted with access to more intelligence than any member of the U.S. government other than the president.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘If I could communicate one thing to the American people</strong> from this unique vantage point, it is that the People’s Republic of China poses the greatest threat to America today, and the greatest threat to democracy and freedom world-wide since World War II.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Beijing intends</strong> to dominate the U.S. and the rest of the planet economically, militarily and technologically.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Another answer is from Ambassador Fu Ying:</strong> ‘The United States believes that China craves world hegemony.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China does not want </strong>to replace U.S. dominance in the world.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Neither of these extreme answers </strong>can, of course, be proven or disproven. As Dr. Mitter points out:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Such projections</strong> are far too rigid and sweeping to usefully describe the complexity of China’s rise—either to capture the inherent uncertainty in China’s future aims or to recognize the essential elements that have shaped its aspirations.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China’s increasingly authoritarian direction under Xi</strong> offers only one possible future for the country.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">How then to analyze China’s ambitions </strong>in the face of ‘the inherent uncertainty in China’s future’?</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Dr. Mitter suggests a template:</strong> ‘Chinese power today is a protean, dynamic force formed by the nexus of:’</p><ol style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘authoritarianism,’</strong></li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘consumerism,’</strong></li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘global ambitions, and’</strong></li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘technology.’</strong></li></ol><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">He says, ‘Call it the ACGT model:</strong> with the same initials as the nucleotides in DNA, these strands of Chinese power combine and recombine to form China’s modern political identity and approach to the rest of the world.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The Chinese Communist Party (CCP)</strong> wants to firm up its grip on Chinese society, encourage consumerism at home and abroad, expand its global influence, and develop and export China’s own advanced technology.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China’s current standing and future prospects</strong> cannot be understood without seeing all four of those goals together.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">While I certainly </strong>am not good enough to determine if Dr. Mitter has selected the right forces, I do believe that in principle such a template gives us the best shot at tracking China’s ambitions.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">And, importantly for the makers of China policy,</strong> a better way to make decisions and allocate resources.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Because, as Dr. Mitter rightly concludes, ‘The four ACGT forces</strong> [or what whichever forces are selected to track] have a significance that extends beyond any one leader or crisis.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘They shape Beijing’s idea of its place in a reconstituted world order, </strong>in which China would take a preeminent role in Asia and export its model of economic investment, which draws on communitarian ideas of development and is indifferent to liberal norms (although not always actively hostile to them).’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">At present in the U.S.</strong> the narrative of China’s seeking dominance has taken hold. As DNI Ratcliffe contends:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China believes </strong>that a global order without it at the top is a historical aberration.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Given China’s earlier and long-held conception</strong> of itself as the ‘Middle Kingdom’ as well as elements of Xi Jinping’s ‘China Dream’ that assertion is not unreasonable.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Add to that</strong> China’s increasing assertiveness.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Take what </strong>has been called China’s bullying. ‘China bullies other countries because it works.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Once told</strong> that they have crossed a “red line” by harming China’s interests or calling out its misdeeds, many governments crumble swiftly.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Others fold</strong> after suffering months of threats, trade boycotts and cancelled official meetings.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But in China’s long experience,</strong> almost all—even sometimes America—climb down eventually, sending envoys to sue for peace.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">And</strong><strong style="font-weight: bold">Australia</strong> is the notable recent example. As <em style="font-style: italic">The Economist</em> reports:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Just now,</strong> it is Australia’s turn for punishment.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Its transgressions</strong> include taking a lead among American allies in banning the use of 5g network equipment from Huawei, a Chinese telecommunications giant, and calling for an independent probe into the origins of covid-19.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China has imposed hefty tariffs</strong> on Australian wine and blocked imports of everything from coal to lobsters.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘If Australia does not cave,</strong> and China decides to sacrifice relations with Australia for years to come, a ghastly warning will be sent to other trade partners that imagine they can criticise China with impunity.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China seems bent </strong>on changing countries that it deems hostile, so that governments, news outlets, universities and other institutions never defy China again.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">And nobody embodies</strong> this better than Minister of Foreign Affairs spokesperson, Zhao Lijian, who ‘has pioneered an extreme approach by becoming a populist provocateur who owes his career to a willingness to shock, needle and troll Beijing’s critics on Twitter.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘As China’s most high-profile official on Twitter,</strong> with nearly 860,000 followers, Mr Zhao, 48, has built a personal brand that is rare for a foreign ministry spokesperson.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Not sure where</strong> bullies and ‘Wolf Warriors’ fit in Dr. Mitter’s ACGT Model.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">‘But, as evidence of China’s immediate intentions, these and other similar actions put me more in DNI Ratcliffe’s camp than in Ambassador Fu Ying’s.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">One final thing.</strong> Dr. Mitter’s essay also described how the Chinese Communist Party is revising China’s role in World War II to give it standing within the post-WWII world order to call for changes as a founding member.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 40px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Fascinating analysis. </strong>It’s in the last post. Have a look.</li></ul></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">1. The DNI on China</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/570fI0?track_p_id=4N3554uAvDK_2RAlhswVECL" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/K9fKxwrt-0GqvuYSovNp30i__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/570fI0?track_p_id=3Dd54uAvDK_qUKku3Q4Dbhb" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">1. 'China Is National Security Threat Number 1'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="display:block; height: 400px; min-height: 300px; overflow: hidden; position: relative;"><a href="http://sco.lt/570fI0?track_p_id=7JHRNccR4uAvDK_EaCt5WS4" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/N9UhyNAQQodfE-CwAUZNZDl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display: flex; width: 100%; height: 100%; object-fit: cover; position: absolute; top: 0; bottom: 0; left: 0; right: 0; margin: auto; border: none; pointer-events: none; "></a></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The Wall Street Journal</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">John Ratcliffe</strong> | Director of National Intelligence</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><strong style="font-weight: bold">‘</strong><em style="font-style: italic"><strong style="font-weight: bold">The intelligence is clear: Beijing intends to dominate the U.S. and the rest of the planet economically, militarily and technologically.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘As Director of National Intelligence,</strong> I am entrusted with access to more intelligence than any member of the U.S. government other than the president.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘I oversee the intelligence agencies,</strong> and my office produces the President’s Daily Brief detailing the threats facing the country.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘If I could communicate one thing to the American people</strong> from this unique vantage point, it is that:’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘the People’s Republic of China</strong> poses the greatest threat to America today, and the greatest threat to democracy and freedom world-wide since World War II.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The intelligence</strong> is clear:’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Beijing intends</strong> to dominate the U.S. and the rest of the planet economically, militarily and technologically.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Many of China’s major public initiatives and prominent companies</strong> offer only a layer of camouflage to the activities of the Chinese Communist Party.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘To address these threats and more,</strong> I have shifted resources inside the $85 billion annual intelligence budget to increase the focus on China.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This shift must continue</strong> to ensure U.S. intelligence has the resources it needs to give policy makers unvarnished insights into China’s intentions and activities.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Within intelligence agencies,</strong> a healthy debate and shift in thinking is already under way.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘For the talented intelligence analysts and operators</strong> who came up during the Cold War, the Soviet Union and Russia have always been the focus.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘For others</strong> who rose through the ranks at the turn of this century, counterterrorism has been top of mind.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But today we must look with clear eyes </strong>at the facts in front of us, which make plain that China should be America’s primary national security focus going forward.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘We shouldn’t assume that Beijing’s efforts</strong> to drag the world back into the dark will fail just because the forces of good have triumphed before in modern times.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China believes </strong>that a global order without it at the top is a historical aberration.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It aims to change</strong> that and reverse the spread of liberty around the world.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Beijing is preparing</strong> for an open-ended period of confrontation with the U.S. Washington should also be prepared.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘This is our once-in-a-generation</strong> challenge.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Americans have always risen to the moment,</strong> from defeating the scourge of fascism to bringing down the Iron Curtain.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This generation</strong> will be judged by its response to China’s effort to reshape the world in its own image and replace America as the dominant superpower.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The intelligence</strong> is clear.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Our response</strong> must be as well.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">2. China's Terms for the Biden Administration</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/5PAzc8?track_p_id=8JVyaegZy6dbb2s_PsGSOAM" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/3QKIJ28TXRxlm_PNLipujEi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/5PAzc8?track_p_id=73pyvlyf6dbb2s_w4UcW6Qo" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank"> 'What Does China Think U.S.-China Relations Should Look Like?'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="display:block; margin-bottom:20px; height: 400px; min-height: 300px; overflow: hidden; position: relative;"><a href="http://sco.lt/5PAzc8?track_p_id=9dNMp3h4Ph6dbb2s_cZluvT" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/5P1uWJnK_xEMdvFVvR5ijDl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display: flex; width: 100%; height: 100%; object-fit: cover; position: absolute; top: 0; bottom: 0; left: 0; right: 0; margin: auto; border: none; pointer-events: none; "></a></td></tr><tr><td style="padding:0 3.5% 3.5% 3.5%;"><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The New York Times<br>Kathleen Kingsbury | </strong>Acting Editorial Page Editor, NYT</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘Ms. Fu is setting out the terms under which her government plans to work with a new Biden administration.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Today  [November 24], </strong><a href="https://www.nytimes.com/2020/11/24/opinion/china-us-biden.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">we are publishing an Op-Ed by Fu Ying</a>, a government official in China, which gives insight — in both what it says and what it doesn’t — into the thinking in Beijing in 2020.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Ms. Fu is an important person</strong> in China’s government — much more important than her titles convey.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘She is among the highest-ranking women in China </strong>and generally considered a moderate.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘So far, </strong>this Op-Ed is the only official statement, beyond the usual platitudes, that has come from the government about the election of Joe Biden to the presidency, and for that reason we thought it was worth publishing.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Ms. Fu is setting out the terms</strong> under which her government plans to work with a new Biden administration.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Those terms,</strong> which include both veiled threats and olive branches, could have significant consequences for American foreign policy for the rest of our lifetimes.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/5hLJwG?track_p_id=4bBIl4tSQUI_XqCHNB6ENoW" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/3QKIJ28TXRxlm_PNLipujEi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/5hLJwG?track_p_id=br1U5G1yhVc14tSQUI_aJe4" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank"> 'Cooperative Competition Is Possible Between China and the U.S.'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="display:block;margin-bottom: 0;height: 400px;min-height: 300px;overflow: hidden;position: relative;"><a href="http://sco.lt/5hLJwG?track_p_id=dTs6AZ3Z3RuRsP4tSQUI_m4" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/rQFsd85jiudnS3sdlgqKYzl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display: flex; width: 100%; height: 100%; object-fit: cover; position: absolute; top: 0; bottom: 0; left: 0; right: 0; margin: auto; border: none; pointer-events: none; "></a></td></tr><tr><td style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The New York Times</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Fu Ying</strong> | former ambassador and vice foreign minister of China</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘And it would be a tragedy of history if two countries of such power moved toward confrontation based on misperceptions.’</strong></em></h2><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;">  <a href="https://www.foreignaffairs.com/articles/shibaidedang" target="_blank" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><em style="font-style: italic">点击此链接阅读中文版</em></a><em style="font-style: italic"> (Read in Chinese)</em>.  </h3><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘There is no denying</strong> the fact that China-U.S. relations have suffered serious damage over the past four years. Each country has expressed much complaint and concern about the other.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The United States</strong> believes that China craves world hegemony.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China sees the United States</strong> as trying to block China’s way forward and as hindering its people’s pursuit of a better life.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘It seems that both sides</strong> are convinced it is always the other party that is in the wrong.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Any initiative</strong> one of them undertakes is invariably seen by the other as an attempt to undermine it.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘For example,</strong> China has proposed the Belt and Road Initiative as a global public good to promote more growth and greater connectivity.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But America interprets</strong> the project as a strategy for geopolitical dominance.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘To refresh the relationship,</strong> each side must accurately assess the other’s intentions.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China does not want </strong>to replace U.S. dominance in the world.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Nor does China need to worry</strong> about the United States changing China’s system.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘And it would be a tragedy of history</strong> if two countries of such power moved toward confrontation based on misperceptions.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It is possible for the two countries</strong> to develop a relationship of “coopetition” (cooperation + competition) by addressing each other’s concerns.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In the fields of economics and technology,</strong> rules and laws must prevail.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It is important that Beijing</strong> listen to and address the legitimate concerns of American companies in China, such as their calls for better intellectual property protection, cybersecurity and privacy.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Washington,</strong> for its part, should ensure a level playing field for Chinese enterprises to operate in the United States.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘America’s fear</strong> of Huawei’s cutting-edge advantages should not be expressed through government bullying. The U.S. government should instead be encouraging its companies to work and compete with Huawei.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Washington’s so-called national security argument</strong> against Chinese companies seems hypocritical to the Chinese, considering that China, over the course of four decades or more of reform and opening up, welcomed all kinds of Western technologies and American companies into China — all the while maintaining its own national security.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘On the political front,</strong> it is high time that the United States drop its habit of interfering in other countries’ internal affairs.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China finds it offensive</strong> when the United States points a finger at the Chinese system or takes action against Beijing for its policies on domestic matters.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But China</strong> also needs to be more proactive in providing the rest of the world firsthand information about what the country stands for and why it is doing what it is doing.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘A calmer atmosphere</strong> can be cultivated when China and the United States respect each other and acknowledge that the other has a different political system that is working in its own way.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In the security field, </strong>both countries shoulder responsibilities for ensuring that the peace and tranquillity that the Asia-Pacific region has enjoyed over the years continues to last.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The United States</strong> should be respectful of China’s sense of national unity and avoid challenging China on the issue of Taiwan or by meddling in the territorial disputes of the South China Sea.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Admittedly,</strong> China’s growing navy has put some pressure on the United States in the western Pacific.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The U.S. Navy,</strong> which has long claimed to be the dominant force in the region, finds the presence of a strong local military power today to be unsettling; its activities close to territories over which China claims sovereignty are met with growing objections from the Chinese military.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The United States’ insensitivity</strong> toward China’s concerns over Taiwan and territorial disputes in the South China Sea can only make Beijing suspect Washington’s motivations:’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Does America</strong> want to help Taiwan go independent? Is it siding with the other claimants in the region in order to humiliate China as the imperialists did in the past?’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Finally,</strong> a host of global issues call for close cooperation between China and the United States — the most urgent being the fight against the coronavirus pandemic.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘To tackle these challenges,</strong> China and the United States should join hands and cooperate with all other concerned parties.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Only then can multilateralism</strong> continue to bring hope for the betterment of humankind.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">3. China Bullies Because It Works</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/5zVeGO?track_p_id=7V3mJFjs5gwN14_eImLS1id" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/_WMiBTDcNqqcPnQt-JHFGUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/5zVeGO?track_p_id=1G5gwN14_CdeyKZ1uCqMT4k" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">‘China Prefers to be Admired, but will Settle for Fear.’</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="display:block;margin-bottom: 0;height: 400px;min-height: 300px;overflow: hidden;position: relative;"><a href="http://sco.lt/5zVeGO?track_p_id=05gwN14_N2ggbVkGp2ZTB2b" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/HKR3ytkpMIyOLkglsgiLZTl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display: flex; width: 100%; height: 100%; object-fit: cover; position: absolute; top: 0; bottom: 0; left: 0; right: 0; margin: auto; border: none; pointer-events: none; "></a></td></tr><tr><td style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The Economist</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘China prefers to be admired, but will settle for fear.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘China bullies</strong> other countries because it works.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Once told</strong> that they have crossed a “red line” by harming China’s interests or calling out its misdeeds, many governments crumble swiftly.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Others fold</strong> after suffering months of threats, trade boycotts and cancelled official meetings.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But in China’s long experience,</strong> almost all—even sometimes America—climb down eventually, sending envoys to sue for peace.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘True, some Western leaders</strong> pay public lip-service to their own country’s values as they land in far-off Beijing.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Once the press</strong> is shooed from the room, however, the foreign visitors get down to dealmaking.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘They bow</strong> to China’s mix of market power, geopolitical importance and ruthlessness.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Lately,</strong> bullying others into furtive submission has not been enough for Communist Party chiefs.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Increasingly,</strong> they seem bent on humiliating countries that show defiance, notably small or mid-sized allies of America.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Just now,</strong> it is Australia’s turn for punishment.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Its transgressions</strong> include taking a lead among American allies in banning the use of 5g network equipment from Huawei, a Chinese telecommunications giant, and calling for an independent probe into the origins of covid-19.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China has imposed hefty tariffs</strong> on Australian wine and blocked imports of everything from coal to lobsters.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In November Chinese diplomats</strong> made public a list of 14 ways in which Australia was “poisoning bilateral relations”.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The charge-sheet</strong> rebuked Australia for allowing news outlets, members of parliament and think-tanks to criticise China.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Late last month China’s foreign ministry </strong>pounced on an Australian government report into unlawful, brutal killings of prisoners and civilians in Afghanistan by Australian troops.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Zhao Lijian</strong>, [more about him below] a ministry spokesman and licensed provocateur on social media, said the report exposed the hypocrisy of Western concerns about human rights.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘On November 30th</strong> Mr Zhao tweeted a crude photo-montage made to look like an Australian soldier slitting an Afghan child’s throat.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Mr Zhao</strong> demanded that troops be held accountable—serenely ignoring the fact that Australia’s inquiry had already recommended that 19 soldiers face criminal investigation.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘At first sight,</strong> such Chinese provocations look clumsy, indeed self-defeating.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘By offending lots of ordinary Australians,</strong> they complicate life for those businesspeople and politicians who want their government to placate China in hopes of restoring normal, profitable trade flows.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That underestimates</strong> the calculating nature of Mr Zhao’s tweets and other Chinese attacks, which are not intended to win over Australian hearts and minds.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Their aim is partly domestic:</strong> to demonstrate the foreign ministry’s fighting spirit to Chinese leaders and online nationalists.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The intention</strong> is also to demonstrate China’s strength and to provoke such a sense of crisis that Australian political and business leaders are desperate to seek a truce.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China’s outlandish attacks</strong> are pseudo-populism: a calculated ploy to press elites into cutting a deal.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘China seems bent </strong>on changing countries that it deems hostile, so that governments, news outlets, universities and other institutions never defy China again.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘If Australia does not cave,</strong> and China decides to sacrifice relations with Australia for years to come, a ghastly warning will be sent to other trade partners that imagine they can criticise China with impunity.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/8QNRtg?track_p_id=2Op83CBmo_hAu3S641nqg%406" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/zxbyrGBKPhFFZLzMYqfYnUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/8QNRtg?track_p_id=9AcgbUJXgw83CBmo_xjnsIW" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'The Provocateur Driving China’s "Wolf Warrior" Pack' </a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="display:block;margin-bottom: 0;height: 400px;min-height: 300px;overflow: hidden;position: relative;"><a href="http://sco.lt/8QNRtg?track_p_id=6NrfClr83CBmo_Jvb5FGrlP" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/wcxD0RO33wIoD4W8evPwEDl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display: flex; width: 100%; height: 100%; object-fit: cover; position: absolute; top: 0; bottom: 0; left: 0; right: 0; margin: auto; border: none; pointer-events: none; "></a></td></tr><tr><td style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The Financial Times</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘Aggressive promotion of China’s interests is expected for a foreign ministry spokesperson, but foreign ministry spokesperson Lijian Zhao has pioneered an extreme approach by becoming a populist provocateur who owes his career to a willingness to shock, needle and troll Beijing’s critics on Twitter.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Zhao Lijian</strong> thrives on controversy.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Aggressive promotion of China’s interests</strong> is expected for a foreign ministry spokesperson, but Mr Zhao has pioneered an extreme approach by becoming a populist provocateur who owes his career to a willingness to shock, needle and troll Beijing’s critics on Twitter.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘For Beijing,</strong> he has crystallised a model for diplomacy with a jagged edge and driven the shift away from an older generation of more conservative and restrained engagement.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The diplomatic furore</strong> that Mr Zhao set off last week, when he tweeted a computer-generated image of an Australian soldier holding a bloody knife to the throat of an Afghan child, was the latest in a string of incendiary incidents that delight Chinese nationalists.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="display:block; height: 400px; min-height: 300px; overflow: hidden; position: relative;"><a href="http://sco.lt/8QNRtg?track_p_id=083CBmo_mjKHf3W%40XSOBNqf" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/kK0eT7YFbrSB8zSrLWJBijl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display: flex; width: 100%; height: 100%; object-fit: cover; position: absolute; top: 0; bottom: 0; left: 0; right: 0; margin: auto; border: none; pointer-events: none; "></a></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In a sign of acceptance of Mr Zhao’s tactics,</strong> the Chinese Academy of Social Sciences, a think-tank that reports to China’s State Council, in May released a series of strategy documents on the need to “strengthen China’s ability to fight for international public opinion”.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It said China had to “counterattack”</strong> against critics on Twitter, Facebook and YouTube, all of which are blocked in mainland China.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘As China’s most high-profile official on Twitter,</strong> with nearly 860,000 followers, Mr Zhao, 48, has built a personal brand that is rare for a foreign ministry spokesperson.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘A position of middling power in the Chinese bureaucracy,</strong> spokespeople had typically confined themselves to scripted reiteration of Beijing’s stance and the occasional outburst over issues such as the South China Sea or Taiwan.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “Historically,</strong> there was quite a lot of criticism [within China] of the Ministry of Foreign Affairs for being too willing to compromise or even lacking in backbone,” Dali Yang, of the University of Chicago, said.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Mr Zhao’s eagerness to push boundaries</strong> has occasionally sparked resistance in China’s foreign policy establishment.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘When he backed a conspiracy theory</strong> in March that the US army could have brought the virus to Wuhan during Military World Games, it was followed by a flurry of statements from senior diplomats, including Fu Ying [see her NYT op-ed above], deputy chairperson of the National People’s Congress Foreign Affairs Committee, calling for restraint in diplomacy.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘But these differences</strong> probably reflect contrasting styles among diplomats rather than a substantive disagreement, said Mr Yang.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “Overall [the young generation’s] hardline stance</strong> and ability to have such influence on the global discourse means they clearly enjoy support within the Chinese leadership,” he said.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Chinese president Xi Jinping</strong> has done away with China’s policy to “bide its time and hide its strength”, instead calling for Beijing to be more assertive in spreading its message.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In response,</strong> the foreign ministry has raised its profile, intensifying a no-holds-barred approach to combating perceived slights, which has been dubbed “wolf warrior” diplomacy after a series of jingoistic Chinese action films.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The tactics,</strong> however, risk a backlash.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Surveys suggest perceptions of China</strong> are at an all-time low in western democracies but the new strategy is hugely popular at home, said Yun Jiang, a director at the China Policy Centre, a research institute in Canberra.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “Everyone loves</strong> good old-fashioned nationalism,” she added.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Starting in 2015,</strong> Mr Zhao pioneered his aggressive Twitter use while rebuffing criticism of China’s investment in Pakistan as minister counsellor at the embassy in Islamabad.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘As his following grew,</strong> he began to post outside his brief, frequently accusing the US of hypocrisy and ulterior motives in sanctioning Chinese telecommunications company Huawei.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In July 2019,</strong> Mr Zhao engaged in a sparring match with Susan Rice, former national security adviser to Barack Obama, the former US president.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘He had defended China’s mass internment campaign in Xinjiang</strong> by comparing tensions between the Han majority and mostly Muslim Uighur minority with race relations in the US.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In a now deleted tweet,</strong> Mr Zhao wrote: “If you’re in Washington, D.C., you know the white never go to the SW area because it’s an area for the black & Latin. There’s a saying ‘black in & white out’.” ’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Ms Rice responded</strong> by calling him “a racist disgrace”.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘A month later,</strong> he was promoted to foreign ministry spokesman.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Mr Zhao is a relative outsider</strong> of China’s diplomatic establishment, having attended Central South University instead of one of the usual feeder universities for the foreign ministry.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘His career</strong> has instead been propelled by his loyal following on Chinese social media, where he is known as an “internet celebrity diplomat”.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Many of his fans </strong>are young, tech savvy and openly nationalist.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Hua Zhong,</strong> a student in her early 20s, said she liked Mr Zhao because of his sharp tone and his “persistence in fighting tirelessly [with] shameless western politicians”.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Despite Twitter</strong> having been blocked in China since 2009, their diplomats have opened dozens of new accounts in the past two years.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Posts from Chinese officials</strong> are often translated and shared widely on social media.'</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Mr Yang said China’s foreign ministry</strong> has an advantage against interlocutors because it has ready access to international social media platforms, while accounts of foreign leaders and diplomats are regularly censored in China.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Last Wednesday WeChat,</strong> one of China’s largest social media platforms, removed a post by Australian prime minister Scott Morrison about Mr Zhao’s tweet directed at Chinese Australians.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘ “I don’t think the west</strong> has fully appreciated that China can create a bubble of its own [at home],” said Mr Yang, “and at the same time interact with the rest of the world in this new way [on western social media].” ’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">4. The World China Wants</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/6HfyaW?track_p_id=aanaIf4hvbj7VpCk2_rP6zC" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/2P2LxiV-sg54VayqL9X2F0i__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/6HfyaW?track_p_id=aCXJHmaoPNp7VpCk2_VE1Bu" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'How Power Will—And Won’t—Reshape Chinese Ambitions'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="display:block; height: 400px; min-height: 300px; overflow: hidden; position: relative;"><a href="http://sco.lt/6HfyaW?track_p_id=2cY7VpCk2_PyYXFgg3TQSuP" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/nhAT51hOn_Mh-DNER-LnPTl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display: flex; width: 100%; height: 100%; object-fit: cover; position: absolute; top: 0; bottom: 0; left: 0; right: 0; margin: auto; border: none; pointer-events: none; "></a></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Foreign Affairs</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Rana Mitter</strong> | University of Oxford</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘Does China want to transform the global order to advance its own interests and to reflect its own image? That may be the most important question in geopolitics today.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Does China want to transform the global order </strong>to advance its own interests and to reflect its own image?’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘That may be the most important question in geopolitics today, </strong>yet the answers it elicits tend to reveal more about modern biases than they do about what a future Chinese superpower would look like.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Those who want to project forward</strong> to a malevolent, expansionist China point to evidence of aggression in Beijing’s posture today.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Those with a less apocalyptic view</strong> highlight more accommodating features in Chinese policy or note that China will face plenty of challenges that will keep it from reshaping the world even if it wants to.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Many Western observers</strong> see a burgeoning new Cold War, with China serving as a twenty-first-century version of the Soviet Union.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Such projections</strong> are far too rigid and sweeping to usefully describe the complexity of China’s rise—either to capture the inherent uncertainty in China’s future aims or to recognize the essential elements that have shaped its aspirations.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China’s increasingly authoritarian direction under Xi</strong> offers only one possible future for the country.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Chinese power today</strong> is a protean, dynamic force formed by the nexus of:’</p><ol style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘authoritarianism,’</strong></li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘consumerism,’</strong></li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘global ambitions, and’</strong></li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘technology.’</strong></li></ol><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Call it the ACGT model:</strong> with the same initials as the nucleotides in DNA, these strands of Chinese power combine and recombine to form China’s modern political identity and approach to the rest of the world.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The Chinese Communist Party (CCP)</strong> wants to firm up its grip on Chinese society, encourage consumerism at home and abroad, expand its global influence, and develop and export China’s own advanced technology.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China’s current standing and future prospects</strong> cannot be understood without seeing all four of those goals together.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘But the four ACGT forces</strong> have a significance that extends beyond any one leader or crisis.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘They shape Beijing’s idea of its place in a reconstituted world order, </strong>in which China would take a preeminent role in Asia and export its model of economic investment, which draws on communitarian ideas of development and is indifferent to liberal norms (although not always actively hostile to them).’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘To legitimize its approach,</strong> China often turns to history, invoking its premodern past, for example, or reinterpreting the events of World War II.’ [please see the next post]</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/6ZqIue?track_p_id=9%40v%401dWHEY6Legv8_OJYyCQ" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/2P2LxiV-sg54VayqL9X2F0i__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/6ZqIue?track_p_id=c%40n55dDliAkOd6Legv8_skP" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'China: Present at the Creation of the Post-WW2 World Order'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Foreign Affairs</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Rana Mitter</strong> | University of Oxford</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold"> ‘In the past two decades, however, China has cast itself not just as a participant in but also as a pivotal founder of the international order that emerged in the wake of World War II.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The various strands of Chinese power</strong> emerged not from whole cloth but from a set of historical frameworks that continue to weigh heavily on all Chinese decision-making.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Chinese leaders draw from the past</strong> in understanding the country’s growing role in the world.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘They now make a revisionist claim </strong>to a founding role in the post-1945 international order, espouse traditional Chinese norms of governance, seek leadership of the global South, and make use of explicitly Marxist-Leninist language and symbols.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In the past two decades,</strong> however, China has cast itself not just as a participant in but also as a pivotal founder of the international order that emerged in the wake of World War II.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘At the 2020 Munich Security Conference,</strong> Foreign Minister Wang Yi <a href="https://www.chinadaily.com.cn/a/202002/16/WS5e490ce7a310128217277dc8.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">reminded </a>listeners that China was the first signatory of the UN Charter in 1945, a fact repeatedly mentioned in recent years by Chinese leaders.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But to embrace that moment</strong>—when representatives of the ruling Nationalists (Kuomintang) dominated the delegation from China that helped establish the UN—the CCP had to reframe the very twentieth-century history that underpins its right to rule China.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Since the 1980s,</strong> the party has acknowledged that its old enemies, the Nationalists and their Western allies, were crucial partners in winning the war against Japan between 1937 and 1945.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Previously,</strong> CCP leaders had taken sole credit for <a href="https://www.nytimes.com/2013/10/18/opinion/the-worlds-wartime-debt-to-china.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">fending off the Japanese invasion </a>of mainland China.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘That recognition</strong> has allowed the party to make a larger reinterpretation of Chinese history that sees the founding of modern China not just in the 1949 communist revolution—as originally imagined—but also in World War II itself.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This shift is not a matter of historical trivia;</strong> instead, it reflects how China imagines itself and wants to be understood.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘China now places itself</strong> centrally in the Allied victory and the creation of the post-1945 order.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It played a crucial role</strong> in defending Asia and pinning down over half a million Japanese troops until the arrival of the Americans and the British after Pearl Harbor, at the cost of as many as 14 million Chinese lives.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This immense contribution </strong>underlies Beijing’s insistence that China was “present at the creation” of the postwar world.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div></td></tr></tbody></table></td></tr></tbody></table></div>

China Policy: The View from the U.S.-China Commission

December 5, 2020

<div style="background-color:#f5f5f5; margin:0 auto; padding:0; text-align:center;"><table cellpadding="0" cellspacing="0" width="100%" style="background-color: #f5f5f5; text-align: center;"><tbody><tr><td><table cellspacing="0" cellpadding="0" style="width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h1 style="font-family: 'Lato';font-size: 26px;line-height: 36px;font-weight: 400;color: #001544;letter-spacing: 0.1px;display: inline-block;margin-block-start: 0;margin-block-end: 0;margin-inline-start: 0px;margin-inline-end: 0px;"><strong style="font-weight: bold">Greetings!</strong></h1><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">In this issue:</strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">1 | U.S.-China Economic & Security Review Commission: 2020 Annual Report</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Us Lawmakers Urged to Put ‘Reciprocity’ at Heart of China Relationship'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Us Panel Calls For "Ambassador-Grade" Envoy ‘n Taiwan'</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">2 | Chapter 1: U.S.-China Global Competition</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">‘Section 1: A Global Contest for Power And Influence: China’s View Of Strategic Competition With The United States’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">‘Section 3: China’s Strategic Aims in Africa’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">3 | Chapter 2: U.S.-China Economic And Trade Relations</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">‘Section 2: Vulnerabilities in China’s Financial System and Risks For The United States’  </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">4 | Chapter 3: U.S.-China Security, Politics, And Foreign Affairs</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">‘Section 2: China’s Growing Power Projection and Expeditionary Capabilities’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">5 | The Commission’s Key Recommendations</strong></p><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">CHINADebate, the publisher of the China Macro Reporter, aims to present different views on a given issue.</strong></em></h2><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">Including an article here does imply agreement with or endorsement of its contents.</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">The U.S.-China Economic & Security Review Commission</strong> recently published its ‘2020 Report to Congress.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Not only does it contain recommendations for Congressional action,</strong> it also serves as a treasure trove of analysis on ‘China's view of strategic competition with the United States; China's promotion of alternative global norms and standards; China's strategic aims in Africa; vulnerabilities in China's financial system and risks for the United States; U.S.-China links in healthcare and biotechnology; China's growing power projection and expeditionary capabilities; Taiwan; Hong Kong; and a review of economics, trade, security, political, and foreign affairs developments in 2020.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">The bi-partisan Commission</strong> was created by Congress in 2000 ‘with the legislative mandate to monitor, investigate, and submit to Congress an annual report on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China, and to provide recommendations, where appropriate, to Congress for legislative and administrative action.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">As the primary body</strong> advising Congress on China – and given the Commission’s track record of influencing legislation and policy - you would think that the publication of the annual report, with its specific and substantive recommendations, would be a major story across the globe.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">But a quick Google search</strong> shows that in fact media coverage was neither in-depth nor widespread.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">So since</strong> you may not have been alerted to seek out and read the report, I am devoting this issue to it alone.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">The report is nearly 600 pages,</strong> and I am still plowing through.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">I have depended on the Executive Summary</strong> to choose the topics to include here- you can see them above - and then I read the section in the main body to be sure I understood all the points.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Also I’ve </strong>included a couple of media descriptions of key recommendations.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Because the Commission </strong>serves Congress and because it looks as though the structure of the two houses isn’t going to change, this report would be important to understand regardless of whether Mr. Trump or Mr. Biden won the presidency.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">But given that Mr. Biden did win</strong> and that we will be looking for indications of the direction of a new China policy under his administration, the Commission report is one starting point to see which way Congress at least may be moving.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">1 | U.S.-China Economic & Security Review Commission: 2020 Annual Report</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7kh9CS?track_p_id=bVhlZM5GoHT16uQsbG_UA1Z" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/fpGU-wSZv6h37ihY1x6e3Ui__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/7kh9CS?track_p_id=9g4ZeC1Uvm6uQsbG_mKkrHs" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'US lawmakers urged to put ‘reciprocity’ at heart of China relationship'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="margin:0 auto; background:#fff;"><tbody><tr><td style="max-width:600px;"><img width="100%" src="https://img.scoop.it/GChJ08lmMnagl0iHm4Di_zl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="display:block; width:100%; border:none; height:auto"></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">South China Morning Post</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘Once considered an outlier for its hawkish views on China, the USCC, whose recommendations are not binding, has in recent years become increasingly representative of a rising, overwhelmingly bipartisan consensus in Washington about the perceived need for stronger policies to counter Beijing.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The </strong><a href="https://www.scmp.com/topics/chinas-communist-party" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">Chinese Communist Party</strong></a> had systematically sought to “hollow out global governance institutions, suppress internal opposition, subjugate free peoples in Hong Kong and around China’s periphery, dominate global economic resources and project military power”, theUS-China Economic and Security Review Commission (USCC) said in its annual report.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “These efforts threaten vital interests of the United States</strong> and the security and vitality of an increasing number of countries around the globe,” it said.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">'Beijing has previously accused </strong>the panel of an “entrenched” bias against China, and has denied visas to commission members seeking to conduct on-the-ground research in the country.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘United States lawmakers</strong> should place the principle of “reciprocity” at the heart of all future legislation relating to the <a href="https://www.scmp.com/topics/us-china-relations" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">US-China relationship</a>, a congressional advisory body said on Tuesday, echoing a tactic that has defined the <a href="https://www.scmp.com/news/china/diplomacy/article/3109496/us-china-relations-trump-divisions-could-haunt-biden" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">Trump administration’s aggressive China policy</a> over the past four years.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In particular,</strong> the US-China Economic and Security Review Commission (USCC) said legislators should push for greater reciprocity in areas including the treatment of journalists, market access for internet companies, the ability of non-governmental organisations to engage with civil society and diplomats’ freedom of travel.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Critics of such an approach</strong> have argued that an undue focus on reciprocity risks undermining the United States’ highly vaunted principles of an open market and a free press, while also failing to secure substantive change from Beijing.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Even the Trump administration’s own ambassador to Beijing,</strong> Terry Branstad, publicly acknowledged before stepping down in September that US efforts to balance the relationship had only succeeded in prompting further retaliation from the Chinese government.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Criticising the Trump administration’s fixation on reciprocity</strong> at a Bloomberg New Economy event last month, former US Treasury secretary Henry Paulson warned the US would “not remain competitive if we become more like China, with its closed, statist model”.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The call from the USCC, </strong>a panel that monitors the national security implications of Washington’s relationship with China, was among more than a dozen recommendations for a more aggressive China policy in the face of what it considered an increasingly assertive Beijing.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Alngside its calls for greater reciprocity</strong> in China-related legislation, the USCC said lawmakers should also establish a “Manhattan Project”-like effort to bolster US self-sufficiency in the medical industry, and direct the Department of State to increase scrutiny of China’s efforts to “subvert the principles and purposes” of the United Nations and its subordinate agencies.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The report </strong>also recommended an expansion of the Federal Trade Commission’s remit to limit the ability of foreign companies receiving direct or indirect state subsidies to take part in mergers or acquisitions in the US.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘With respect to Taiwan,</strong> the USCC called on lawmakers to pass legislation that would elevate the role of Washington’s representative in the self-governed island – the director of the American Institute in Taiwan – to a president-nominated, Senate-confirmed position.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Such a move would put</strong> the posting on a par with ambassadors to any other sovereign nation.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The USCC‘s report</strong> drew a strong rebuke from the Hong Kong government, which released a statement in the early hours of Tuesday shooting down the “unfounded accusations” about the city and urging the US to stop its interference in the city’s affairs.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “The HKSAR government </strong>will continue to discharge its duty to safeguard national security in Hong Kong in accordance with the law and without fear or anxiety. We will not be intimidated by the so-called sanctions unjustifiably imposed by foreign countries,” the statement read.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Once considered an outlier for its hawkish views on China,</strong> the USCC, whose recommendations are not binding, has in recent years become increasingly representative of a rising, overwhelmingly bipartisan consensus in Washington about the perceived need for stronger policies to counter Beijing.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/5hfeUa?track_p_id=9CaZIXScM35Pc34A_XdQPWv" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/qEkV02U-QW3pdvCJaMF2VUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/5hfeUa?track_p_id=3WU15Pc34A_6VadAlfm6XYh" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'US panel calls for "ambassador-grade" envoy in Taiwan'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Nikkei Asia Review</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">"It's part of our constant thinking in these report recommendations for ways to reduce the isolation of Taiwan, only as China is constantly trying to increase it."</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The influential U.S.-China Economic and Security Review Commission,</strong> a bipartisan group that monitors the effect of Sino-U.S. relations on national security, said in its annual report that Congress should strengthen its support for Taiwan.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The U.S. operates the American Institute in Taiwan, </strong>a body that is the de facto U.S. embassy for the territory.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The director of the de facto U.S. embassy in Taiwan</strong> is currently appointed by the U.S. secretary of state, and the selection is not subject to confirmation by the Senate.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Congress should enact legislation</strong> that makes the institute's director subject to advice and consent by the Senate, the commission, or USCC, said.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The move</strong> would place the director of the American Institute in Taiwan on a similar level as an ambassador.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Both Carolyn Bartholomew,</strong> vice chairman of the USCC and James Talent, a former senator and a USCC commissioner said their recommendations do not create an ambassadorial position.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘They still think</strong> of it as a director position.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘ "It's part of our constant thinking</strong> in these report recommendations for ways to reduce the isolation of Taiwan, only as [China] is constantly trying to increase it," said James Talent.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ "We thought this was a way to signal American support</strong> without changing the underlying diplomatic status." ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">2 | Chapter 1: U.S.-China Global Competition</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/6XtqQS?track_p_id=09CMJdW_RkUyPu%40b1Fs3CUV" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/VmfwcvEii8kT6rmQ4UwKOUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/6XtqQS?track_p_id=e51tV2NE25kmVX29CMJdW_W" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'SECTION 1: A GLOBAL CONTEST FOR POWER AND INFLUENCE: CHINA’S VIEW OF STRATEGIC COMPETITION WITH THE UNITED STATES'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">U.S.-China Economic & Security Review Commission</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">'The CCP believes China faces a rare historic opportunity to establish control over a cluster of revolutionary, networked technologies, including high-speed internet, sensors, telecommunications, artificial intelligence, robotics, and smart city infrastructure.'</strong></em></h2><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><a href="https://www.uscc.gov/sites/default/files/2020-12/2020_Executive_Summary.pdf" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">Read</strong></a><strong style="font-weight: bold"> the 40-page Executive Summary.</strong> </h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><a href="https://www.uscc.gov/sites/default/files/2020-12/2020_Annual_Report_to_Congress.pdf" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">Read</strong></a><strong style="font-weight: bold"> the 587-page ‘Annual Report to Congress.’</strong> </h3><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">[A few] ‘Key Findings'</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Beijing has long held the ambition</strong> to match the United States as the world’s most powerful and influential nation. Over the past 15 years, as its economic and technological prowess, diplomatic influence, and military capabilities have grown, China has turned its focus toward surpassing the United States. Chinese leaders have grown increasingly aggressive in their pursuit of this goal following the 2008 global financial crisis and General Secretary Xi’s ascent to power in 2012.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Beijing views economic competition</strong> with the United States in the context of its broader economic development strategy. Beginning in 2006, the United States, as the global economic and technological leader, became a target to chase and surpass as the CCP fostered domestic production and innovation through successive waves of industrial plans (see Figure 1).’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In China’s most recent industrial policy wave,</strong> set by the 2016 InnovationDriven Development Strategy, which includes the Made in China 2025 plan, policymakers have promoted the development of China’s digital ecosystem and accompanying regulatory architecture. The CCP believes China faces a rare historic opportunity to establish control over a cluster of revolutionary, networked technologies, including high-speed internet, sensors, telecommunications, artificial intelligence, robotics, and smart city infrastructure. Doing so could allow Beijing to leapfrog the United States and other powerful competitors and lead in the next generation of global innovation.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="margin:0 auto; background:#fff;"><tbody><tr><td style="max-width:600px;"><img width="100%" src="https://img.scoop.it/zVWw-EGKhJvy6-RYkSxdfDl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="display:block; width:100%; border:none; height:auto"></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/6q4Aka?track_p_id=eamPfWACrKASfd15gZa5W_4" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/VmfwcvEii8kT6rmQ4UwKOUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/6q4Aka?track_p_id=3tDo5gZa5W_dCneKtkQmG2h" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'SECTION 3: CHINA’S STRATEGIC AIMS IN AFRICA'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">U.S.-China Economic & Security Review Commission</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘Although China seeks to minimize its visible military presence on the continent, it nonetheless employs a multidimensional approach to security engagement with African countries that supports its political, economic, and military interests .'</strong></em></h2><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><a href="https://www.uscc.gov/sites/default/files/2020-12/2020_Executive_Summary.pdf" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">Read</strong></a><strong style="font-weight: bold"> the 40-page Executive Summary.</strong> </h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><a href="https://www.uscc.gov/sites/default/files/2020-12/2020_Annual_Report_to_Congress.pdf" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">Read</strong></a><strong style="font-weight: bold"> the 587-page ‘Annual Report to Congress.’</strong> </h3><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Over the last two decades,</strong> China has reinvigorated its longstanding ties to African countries, placing the continent squarely at the center of its ambitions to become a global political and economic leader.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Beijing views Africa</strong> as a testing ground for the export of its political and economic model and believes that if more African countries emulate China’s system of governance, it will be easier for Beijing to advance its strategic objectives across the continent and globally.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘To this end,</strong> the Chinese government regularly hosts African political and military leaders for training sessions (see Figure 3), many of which stress the superiority of China’s autocratic governance model.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The CCP</strong> has used the influence it gains from its political engagement with African countries to enlist African support for its geopolitical objectives, diminishing the impact of U.S. diplomacy in African countries and in the international system.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="margin:0 auto; background:#fff;"><tbody><tr><td style="max-width:600px;"><img width="100%" src="https://img.scoop.it/4IdSiAkqa2d4JtCHVLHaUzl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="display:block; width:100%; border:none; height:auto"></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><p style="margin: 0;font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong>‘Economics is a key pillar in Beijing’s Africa strategy,</strong> with China surpassing the United States as Africa’s largest trading partner in 2009 (see Figure 4).’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="margin:0 auto; background:#fff;"><tbody><tr><td style="max-width:600px;"><img width="100%" src="https://img.scoop.it/HkqHqumqRWy4YsRrDoi7uzl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="display:block; width:100%; border:none; height:auto"></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><p style="text-align: left;font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Today,</strong> China is also Africa’s largest bilateral creditor.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Though China’s growing presence</strong> in African economies can bring muchneeded infrastructure to many countries, the Chinese government’s lack of transparency, accountability, and adherence to global development standards raises concerns, including over its support for corruption and repression.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Beijing’s increasing control</strong> over the supply of key African commodities such as cobalt could threaten U.S. access to inputs for emerging technologies.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Additionally,</strong> China’s infrastructure financing often comes with requirements that Chinese firms complete the projects, depriving non-Chinese firms of important business opportunities in many African countries.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Chinese loans</strong> also risk creating an unsustainable debt burden in some African countries, which may leave them vulnerable to Chinese government coercion.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Separately,</strong> the United States and other responsible lenders might end up shouldering an outsized burden in debt relief efforts, essentially bailing out Beijing’s irresponsible lending practices.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘While commodities and infrastructure</strong> continue to dominate China-Africa economic relations, China has also focused increasing attention on Africa’s emerging digital economy.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Chinese firms</strong> already dominate Africa’s mobile phone handset market and have made increasing investments in its venture capital market, providing China with opportunities to set emerging technological standards in Africa.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Although China</strong> seeks to minimize its visible military presence on the continent, it nonetheless employs a multidimensional approach to security engagement with African countries that supports its political, economic, and military interests (see Figure 5).’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Beijing primarily relies</strong> on private military contractors and African partners to protect its investments, and there is evidence it has shown a willingness to leverage its influence in the UN peacekeeping operations system to advance its economic goals in Africa.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China’s permanent military base in Djibouti</strong> improves its ability to deploy and sustain troops on the continent, while substantial investments in civilian ports could lead to dual-use arrangements or the establishment of additional military bases in the future.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘If China further expands</strong> its military presence on and around the continent, it could allow the PLA to impede the movement of the U.S. Navy in the western Indian Ocean and even the southern Atlantic in the event of a future conflict in East Asia.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="margin:0 auto; background:#fff;"><tbody><tr><td style="max-width:600px;"><img width="100%" src="https://img.scoop.it/8azvC0XLyC7F3nOo70-U3zl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="display:block; width:100%; border:none; height:auto"></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">3 |  Chapter 2: U.S.-China Economic and Trade Relations</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/78EV4i?track_p_id=b65VsbxDygP%406mli5W_3GdA" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/VmfwcvEii8kT6rmQ4UwKOUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/78EV4i?track_p_id=4MsE16mli5W_VSyq2ep6Xi4" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'SECTION 2: VULNERABILITIES IN CHINA’S FINANCIAL SYSTEM AND RISKS FOR THE UNITED STATES'   </a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">U.S.-China Economic & Security Review Commission</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold"> ‘Increased financial exposure to China threatens to undermine U.S. efforts to defend against China’s unfair economic practices and protect U.S. policy interests.'</strong></em></h2><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><a href="https://www.uscc.gov/sites/default/files/2020-12/2020_Executive_Summary.pdf" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">Read</strong></a><strong style="font-weight: bold"> the 40-page Executive Summary.</strong> </h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><a href="https://www.uscc.gov/sites/default/files/2020-12/2020_Annual_Report_to_Congress.pdf" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">Read</strong></a><strong style="font-weight: bold"> the 587-page ‘Annual Report to Congress.’</strong> </h3><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In 2020, the Chinese government</strong> leaned on state control to contain the economic fallout of the COVID-19 pandemic, instructing banks to lend to companies hard hit by the virus and deploying the country’s financial system to absorb the pandemic’s shocks.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘While Beijing’s response</strong> has enabled a rapid recovery in China’s economy, it has done so by fortifying the role of the state in managing economic activity and promoting policies similar to those that have generated misallocation of credit and ballooning debt in the past.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Chinese government’s tenacious commitment</strong> to economic stability above all else reinforces public expectations that it will always be there to bail out struggling banks or companies.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This implicit guarantee</strong> of government support contributed to local governments and companies taking on increasing amounts of credit after the 2008 crisis, leading to current concerns about the stability of the financial system.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China’s first economic contraction</strong> in four decades also raises renewed concerns that debt levels will continue to rise.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Chinese government</strong> is beginning to experiment with breaking this implicit guarantee and to defuse risks in China’s financial system as regulators embark on a cleanup of the banking sector and assess systemic problems caused by a decade of rapidly accumulated debt (see Figure 6).’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="margin:0 auto; background:#fff;"><tbody><tr><td style="max-width:600px;"><img width="100%" src="https://img.scoop.it/UhkBDS87iyW3IyXYI8fUHDl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="display:block; width:100%; border:none; height:auto"></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><p style="margin: 0;font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong>‘Confronting the scale of these problems,</strong> the Chinese government increasingly views foreign capital as part of the solution.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘Beijing’s financial opening</strong> in recent years thus reflects a calculated strategy to secure foreign investment inflows and use them to shore up the domestic economy and strengthen its companies.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘As this opening continues,</strong> exposure to unique risks in China’s financial system rises for foreign investors, and their financial wellbeing becomes increasingly staked on Beijing’s management of the Chinese economy.’</li></ul><p style="margin: 0;font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong>‘China’s financial opening</strong> is also deepening U.S.-China financial integration just as the U.S. government takes more concerted steps to confront China’s unfair economic policies and threats to U.S. interests.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘Of particular concern</strong> is the rising inclusion of Chinese securities in global investment indices. These inclusions are funneling hundreds of billions of U.S. investment dollars toward a financial system that lacks transparency, adequate pricing of risks, and regulatory oversight (see Figure 7).’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘They are also financing companies</strong> whose operations are otherwise antithetical to U.S. national security and foreign policy objectives.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="margin:0 auto; background:#fff;"><tbody><tr><td style="max-width:600px;"><img width="100%" src="https://img.scoop.it/MIQzYn7VE0o2yn8AJ_gG1jl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="display:block; width:100%; border:none; height:auto"></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><p style="margin: 0;font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong>‘Local governments shoulder</strong> crushing debt levels, banks remain undercapitalized, and increased public expenditure on caring for an aging population will erode national savings.’</p><p style="margin: 0;font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong>‘U.S. portfolio investment inflows</strong> to China are also poised to grow significantly, especially if China recovers from the pandemic ahead of other economies, making Chinese financial markets more attractive.’</p><p style="margin: 0;font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong>‘As these trends converge</strong> and U.S. exposure to risks in China’s financial system rises, doubts about whether deepening U.S.-China financial integration is desirable are coming into sharper relief.’</p><p style="margin: 0;font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong>‘Key Findings’ </strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘China’s formal financial system</strong> is dominated by state-owned banks, whose position has been strengthened in the wake of the COVID-19 pandemic in 2020 (see Figure 8). These banks favor state-owned enterprises (SOEs) and privileged companies, leaving other Chinese companies starved for capital. Between 2008 and 2016, a large and unwieldy shadow banking sector emerged to fill this gap, leading to a proliferation of risky financial products and rising leverage across China’s financial sector.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="margin:0 auto; background:#fff;"><tbody><tr><td style="max-width:600px;"><img width="100%" src="https://img.scoop.it/KXpH0vw-fJ03x8q35GJWIjl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="display:block; width:100%; border:none; height:auto"></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘In 2016,</strong> Beijing launched a financial de-risking campaign to rein in shadow banking activity and clean up the financial sector. This campaign choked off small private companies’ access to financing. The COVID-19 pandemic has further deteriorated the financial health of these companies, forcing the government to ease its regulatory tightening and prioritize economic stability over financial de-risking. With such vulnerabilities remaining unaddressed, investors in China’s capital markets are increasingly exposed to structural problems in China’s financial system.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘As Beijing strategically opens</strong> its financial sector to secure foreign capital and global investment indices shift asset allocations toward Chinese securities, U.S. investors’ exposure to the unique and significant risks accumulated in China’s capital markets rises (see Figure 9). These risks center around the opacity of China’s financial system and ‘Beijing’s interference in market activity to advance its political objectives.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="margin:0 auto; background:#fff;"><tbody><tr><td style="max-width:600px;"><img width="100%" src="https://img.scoop.it/RraMSvH6-PFK1d5-IgwRSjl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="display:block; width:100%; border:none; height:auto"></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘Increased financial exposure to China</strong> threatens to undermine U.S. efforts to defend against China’s unfair economic practices and protect U.S. policy interests. Several Chinese companies included in global investment indices are subject to U.S. export controls but not investment restrictions. This mismatch enables problematic Chinese companies to continue raising U.S. capital and reduces the strength with which the United States can defend against companies that threaten national security.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘While China’s leadership speaks</strong> of developing more dynamic capital markets, liberalizing interest rates, and imposing market discipline on the banking sector, these ambitions are tempered by a low tolerance for market instability and a strong bias in favor of stateowned companies to maintain economic growth and safeguard employment.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘After years of unbridled lending,</strong> China’s financial system is facing mounting problems. Local governments have recorded significant revenue shortfalls, banks remain undercapitalized, and an aging population threatens persistent current account deficits. The Chinese government seeks to attract large volumes of new foreign investment to meet these capital shortfalls. These circumstances provide the key context for the entry of foreign capital and expertise into the country’s financial system.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘Beijing continues to deny U.S. audit regulators</strong> full visibility into the financials of U.S.-listed Chinese companies in line with U.S. accounting standards. These evasions from effective regulation and oversight, together with U.S.-listed Chinese companies’ complex ownership structures, deprive U.S. investors of both full transparency and the opportunity for legal redress in cases of accounting fraud, eroding the integrity of U.S. capital markets.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘The COVID-19 pandemic</strong> has exacerbated key risks in China’s already strained financial system. Although a full accounting of economic damage is still underway, China’s first economic contraction in four decades will make it more difficult to tackle the country’s debt burden, resolve nonperforming loans, and efficiently allocate capital.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘Beijing’s imposition of the national security law in Hong Kong</strong> has accelerated the territory’s assimilation into China’s national governance system, which could erode its status as a global financial hub. As the Chinese government calibrates financial opening, it may lean more on Hong Kong to raise foreign capital and serve Chinese companies and continue to rely on the territory as an extension of mainland capital markets.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">4 | Chapter 3: U.S.-China Security, Politics, and Foreign Affairs</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7QOpOq?track_p_id=dWDaXfcJNNpNvn5QSqSM_Vo" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/VmfwcvEii8kT6rmQ4UwKOUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/7QOpOq?track_p_id=7mwqEpXt5QSqSM_Yy3DAOac" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'SECTION 2: CHINA’S GROWING POWER PROJECTION AND EXPEDITIONARY CAPABILITIES'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 0 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"> <strong style="font-weight: bold">U.S.-China Economic & Security Review Commission</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold"> ‘China’s power projection capabilities are currently most developed in East and Southeast Asia, where its activities threaten the security of the United States and its allies and partners, but these capabilities diminish as distance from the region increases.’</strong></em></h2><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><a href="https://www.uscc.gov/sites/default/files/2020-12/2020_Executive_Summary.pdf" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">Read</strong></a><strong style="font-weight: bold"> the 40-page Executive Summary.</strong> </h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><a href="https://www.uscc.gov/sites/default/files/2020-12/2020_Annual_Report_to_Congress.pdf" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">Read</strong></a><strong style="font-weight: bold"> the 587-page ‘Annual Report to Congress.’</strong> </h3><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘China has made changes</strong> to its military strategy, equipment, and global posture over the last two decades that now enable it to project power at greater distances from its shores.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Under the leadership of General Secretary Xi,</strong> the PLA has begun the process of transforming itself into a “world-class military” to support his ambitions for national rejuvenation.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘China’s strategic requirements</strong> relating to the projection of military power are:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘defending</strong> sovereign territory as the CCP defines it;’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘delaying or denying</strong> potential threats or intervention in a regional conflict or sovereignty dispute by other powers, such as the United States; and’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘protecting</strong> China’s overseas economic interests and sea lines of communication.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘PLA strategists</strong><strong style="font-weight: bold">argue</strong> that a world-class military must possess a blue-water navy capable of conducting expeditionary operations with air and ground forces on faraway continents.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Authoritative sources</strong> suggest Chinese leaders aspire to project force and be capable of fighting limited wars around the globe by the middle of the century.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Today,</strong> the PLA is vigorously updating its equipment, training, and organization in ways that increase the capacity and range of its power projection capabilities.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The force’s efforts</strong> focus on rectifying shortfalls in six operational areas: amphibious assault, naval power projection, air power projection and delivery, long-range precision strike, global logistics, and global command and control.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Two notable dimensions </strong>of the PLA’s capability-building efforts are its incorporation of cyber and space technologies for power projection and its reliance on civilian entities for global logistics and force sustainment.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China’s base in Djibouti</strong> and its expanding access to civilian ports and airfields around the world also help support the PLA’s global operations.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘China’s power projection capabilities </strong>are currently most developed in East and Southeast Asia, where its activities threaten the security of the United States and its allies and partners, but these capabilities diminish as distance from the region increases.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘To prepare the groundwork</strong> for a future network of overseas military bases and dualuse logistics facilities, the PLA uses traditional military diplomacy and humanitarian activities to burnish its image and sway host nation leaders.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China’s overseas access model</strong> also relies on civilian ports operated or majority owned by Chinese SOEs, which may become dual-use logistics facilities.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The PLA’s power projection capabilities</strong> have already had significant ramifications for the U.S. security architecture in East Asia and could eventually affect the United States’ ability to defend its interests across the globe.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="margin:0 auto; background:#fff;"><tbody><tr><td style="max-width:600px;"><img width="100%" src="https://img.scoop.it/CKvV-zrb0eeTTs8tmINPZzl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="display:block; width:100%; border:none; height:auto"></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><p style="margin: 0;font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong>‘Key Findings’</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘Recent advances </strong>in equipment, organization, and logistics have significantly improved the PLA’s ability to project power and deploy expeditionary forces far from China’s shores. A concurrent evolution in military strategy requires the force to become capable of operating anywhere around the globe and of contesting the U.S. military if called upon to do so. Chinese leaders have vigorously pushed the PLA to develop power projection and expeditionary capabilities over the last 20 years.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘China’s power projection capabilities</strong> are developing at a brisk and consistent pace, reflecting the civilian leadership’s determination to transform the PLA into a global expeditionary force in a matter of decades. In the short term (next five years), the PLA will focus on consolidating the capabilities that would enable it to conduct large-scale military operations around its maritime periphery. In the medium term (next 10–15 years), the PLA aims to be capable of fighting a limited war overseas to protect its interests in countries participating in the BRI. By mid-century, the PLA aims to be capable of rapidly deploying forces anywhere in the world.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘China’s basing model</strong> includes military facilities operated exclusively by the PLA as well as civilian ports operated or majority-owned by Chinese firms, which may become dual-use logistics facilities. Chinese firms partially own or operate nearly 100 ports globally, more than half of which involve a Chinese SOE.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘Despite the PLA’s progress</strong> in building expeditionary capabilities, it continues to face a number of challenges in projecting power. These challenges grow more pronounced the farther away the PLA operates from China’s immediate periphery and include inadequate airlift, sealift, at-sea replenishment, and in-air refueling capabilities.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong>‘</strong><strong>China’s power projection capabilities</strong> are robust in East and Southeast Asia, where it is building military bases (see Figure 11). In the Indian Ocean, the PLA deploys naval task forces that regularly operate for seven to eight months as far away as Africa’s eastern seaboard (see Figure 10). While the PLA’s power projection capabilities diminish the farther it operates from China, it is beginning to develop the ability to project power in the South Atlantic, where it occasionally conducts naval operations, makes port calls, and carries out military exercises with local partners. In Latin America and the Caribbean, where PLA power projection capabilities are weakest, the force is cultivating political influence and greater access to the region that will complement the satellite tracking station it already maintains in Argentina.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%" style="margin:0 auto; background:#fff;"><tbody><tr><td style="max-width:600px;"><img width="100%" src="https://img.scoop.it/b2risfU84nvbsKmjxR02CTl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="display:block; width:100%; border:none; height:auto"></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">5 | The Commission’s Key Recommendations</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7iZ9iy?track_p_id=9strgvnIMI78LDyQ_LYOcd3" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/VmfwcvEii8kT6rmQ4UwKOUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/7iZ9iy?track_p_id=6a%40sk2r78LDyQ_eaGOJHlt4" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">The Commission’s Key Recommendations</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">U.S.-China Economic & Security Review Commission</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><strong style="font-weight: bold">The Commission considers 10 of its 19 recommendations to Congress to be of particular significance. </strong></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;">The Commission recommends:</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;">1. Congress adopt the principle of reciprocity as foundational in all legislation bearing on U.S.-China relations. Issues to be considered in applying this principle should include but are not limited to the following:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">The ability of journalists and online media to operate without undue restriction;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">The ability of nongovernmental organizations to conduct meaningful engagement with civil society;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Access to information, including but not limited to financial and research data;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Access for social media and mobile apps from U.S. companies;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Access for diplomatic personnel, including but not limited to diplomats’ freedom of travel and ability to meaningfully exchange views with the host country public; and</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Market access and regulatory parity, including but not limited to companies’ ability to participate in trade, investment, and financial market transactions, cross-border capital transfer, and protections of intellectual property.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;">2. Congress expand the authority of the Federal Trade Commission (FTC) to monitor and take foreign government subsidies into account in premerger notification processes.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">The FTC shall develop a process to determine to what extent proposed transactions are facilitated by the support of foreign government subsidies.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">The definition of foreign government subsidies shall encompass direct subsidies, grants, loans, below-market loans, loan guarantees, tax concessions, governmental procurement policies, and other forms of government support.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Companies operating in the United States that benefit from the financial support of a foreign government must provide the FTC with a detailed accounting of these subsidies when undergoing FTC premerger procedures.</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">If the FTC finds foreign subsidies have facilitated the transaction, the FTC can either propose a modification to remedy the distortion or prohibit the transaction under Section 7 of the Clayton Act, which prohibits mergers and acquisitions where the effect “may be substantially to lessen competition, or to tend to create a monopoly.”</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;">3. Congress direct the U.S. Department of State to produce an annual report detailing China’s actions in the United Nations and its subordinate agencies that subvert the principles and purposes of the United Nations. Such a report would at a minimum document the following:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">China’s actions violating United Nations treaties to which it is a party;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">China’s actions to influence the votes of United Nations members, including through coercive means;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">China’s actions to nominate or support candidates for United Nations leadership positions that do not adhere to United Nations standards for impartiality or are subject to the influence of the Chinese government;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Actions by nationals of the People’s Republic of China and others currently holding United Nations leadership positions that appear to support the interests of the Chinese government in violation of United Nations impartiality standards;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Actions by nationals of the People’s Republic of China serving in functional positions in United Nations organizations impacting hiring practices, internal policies, and other functions that appear to support the interests of the Chinese government in violation of United Nations impartiality standards;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Actions by Chinese military and support personnel engaged in United Nations peacekeeping operations that are inconsistent with the principles governing these missions, including China’s deployment of these personnel to protect its economic interests and improve the power projection capabilities of the People’s Liberation Army; and</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">The number and positions of United States personnel employed by the United Nations and its agencies.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;">4. Congress hold hearings to consider the creation of an interagency executive Committee on Technical Standards that would be responsible for coordinating U.S. government policy and priorities on international standards. This Committee would consist of high-level political appointees from executive departments with equities relating to international technical standards, including the Department of Commerce, the Department of State, the Department of Defense, the Department of Energy, the Office of Science and Technology Policy, and other agencies or government stakeholders with relevant jurisdiction. The Committee’s mandate would be to ensure common purpose and coordination within the executive branch on international standards. Specifically, the Committee would:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Identify the technical standards with the greatest potential impact on American national security and economic competitiveness;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Coordinate government efforts relating to those standards;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Act as a liaison between government, academia, and the private sector to coordinate and enhance joint efforts in relation to standards;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Manage outreach to counterpart agencies among U.S. allies and partners;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Set funding priorities and recommendations to Congress; and</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Produce annual reports to Congress on the status of technical standards issues and their impact on U.S. national security and economic competitiveness.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;">5. Congress consider establishing a “Manhattan Project”-like effort to ensure that the American public has access to safe and secure supplies of critical lifesaving and life-sustaining drugs and medical equipment, and to ensure that these supplies are available from domestic sources or, where necessary, trusted allies. Such a project would supplement the recommendation the Commission made in its 2019 Annual Report that Congress hold hearings with a view toward enacting legislation requiring the U.S. government to procure medicines only from U.S. production facilities or from facilities that have been certified compliant with U.S. standards.</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;">6. Congress enact legislation establishing a China Economic Data Coordination Center (CEDCC) at the Bureau of Economic Analysis at the U.S. Department of Commerce. The Center would be mandated to collect and synthesize official and unofficial Chinese economic data on developments in China’s financial markets and U.S. exposure to risks and vulnerabilities in China’s financial system, including:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Data on baseline economic statistics (e.g., gross domestic product [GDP]) and other indicators of economic health;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Data on national and local government debt;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Data on nonperforming loan amounts;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Data on the composition of shadow banking assets;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Data on the composition of China’s foreign exchange reserves; and</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Data on bank loan interest rates.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;">7. Congress direct the Administration, when sanctioning an entity in the People’s Republic of China for actions contrary to the economic and national security interests of the United States or for violations of human rights, to also sanction the parent entity.</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;">8. Congress consider enacting legislation to make the Director of the American Institute in Taiwan a presidential nomination subject to the advice and consent of the United States Senate.</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;">9. Congress amend the Immigration and Nationality Act to clarify that association with a foreign government’s technology transfer programs may be considered grounds to deny a nonimmigrant visa if the foreign government in question is deemed a strategic competitor of the United States, or if the applicant has engaged in violations of U.S. laws relating to espionage, sabotage, or export controls. Association with a foreign government’s technology transfer programs can include any of the following:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Participation in a foreign government-sponsored program designed to incentivize participants to transfer fundamental research to a foreign country via a talent recruitment program or in a foreign government-sponsored startup competition;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Acceptance of a government scholarship that requires recipients to study specific strategic scientific and technological fields, to return to the foreign country for a government work requirement after the scholarship term ends, or facilitates coordination with talent programs;</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Association with a university or a department of a university that the U.S. government has designated as a participant in the foreign government’s military-civil fusion efforts; or</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">Status (current or past) as a scientist, technician, or officer for a foreign military, if the applicant does not disclose such information when applying for a visa.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;">10.Congress direct the Administration to identify and remove barriers to receiving United States visas for Hong Kong residents attempting to exit Hong Kong for fear of political persecution.'</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div></td></tr></tbody></table></td></tr></tbody></table></div>

The Best Strategy to Counter China

December 2, 2020

<div style="background-color:#f5f5f5; margin:0 auto; padding:0; text-align:center;"><table cellpadding="0" cellspacing="0" width="100%" style="background-color: #f5f5f5; text-align: center;"><tbody><tr><td><table cellspacing="0" cellpadding="0" style="width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h1 style="font-family: 'Lato';font-size: 26px;line-height: 36px;font-weight: 400;color: #001544;letter-spacing: 0.1px;display: inline-block;margin-block-start: 0;margin-block-end: 0;margin-inline-start: 0px;margin-inline-end: 0px;"><strong style="font-weight: bold">Greetings!</strong></h1><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">In this issue:</strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">1. 'Jim Mattis: Why U.S. Security Depends on Alliances—Now More Than Ever'</strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">2. Old Alliance: NATO on China</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'NATO Should Expand Its Focus to Include China, Report Says'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">‘NATO 2030: United for a New Era’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">3. A Sort-Of Alliance: 'The Quad'</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'An Indo-Pacific Club Builds Heft'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'Why the Quad Should Focus on a Strategy to Contain China'</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">4. New Alliance Proposal: 'D-10' or 'Democracy 10,'</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'A Council of Democracies Can Save Multilateralism'</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">5. Another New Alliance Proposal: 'T-10' or ‘Technology 10’</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'US, Europe, and UK Must Unite to Keep Chinese Tech at Bay'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;">'How Should Democracies Confront China’s Digital Rise? Weighing the Merits of a T-10 Alliance'</li></ul><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">CHINADebate, the publisher of the China Macro Reporter, aims to present different views on a given issue.</strong></em></h2><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">Including an article here does imply agreement with or endorsement of its contents.</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Jim Mattis,</strong> along with his co-authors, is not the first to say, ‘America First’ is ‘America Alone,’ but he is certainly the most influential. In ‘Why U.S. Security Depends on Alliances—Now More Than Ever,' he and the others write:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The best strategy</strong> for ensuring safety and prosperity is to buttress American military strength with enhanced civilian tools and a restored network of solid alliances—both necessary to achieving defense in depth.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The principal external threat the United States</strong> faces today is an aggressive and revisionist China—the only challenger that could potentially undermine the American way of life.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The United States’ goal, however,</strong> should not only be to deter great-power war but to seek great-power peace and cooperation in advancing shared interests.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘For that,</strong> the United States’ alliances and partnerships are especially crucial.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Since the major democracies</strong> are in agreement or moving toward agreement with these insights, the alliance-friendly Biden administration will have plenty to work with.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">Here are</strong> just a few of the alliances – old, sort-of, and proposed.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"> </p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">NATO is on board </strong>with countering China’s threats.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">The alliance just put out</strong> ‘NATO 2030: United for a New Era.’ The report states:</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The growing power and assertiveness of China</strong> is the other major geopolitical development that is changing the strategic calculus of the Alliance.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘At their meeting in London in December 2019</strong>, NATO leaders stated that China’s growing influence and international policies present both opportunities and challenges that need to be addressed as an Alliance.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold"> </strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Then there is ‘The Quad.’</strong> According to <em style="font-style: italic">The Economist</em>:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘When America, Australia, India, and Japan</strong> met in 2007 for a “quadrilateral dialogue” on security matters, many bet the new grouping would fizzle, despite acquiring the much snappier title of “the Quad”.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Once non-aligned India,</strong> still suspicious of anything that smacked of an alliance, was non-committal, but in the end, it was Australia, discomfited by China’s prickly reaction, that was the first to break ranks.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘What has changed, says Kevin Rudd,</strong> a former prime minister of Australia, is that President Xi Jinping has since “fundamentally altered the landscape” by projecting Chinese power across Asia and the Pacific.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And so, since 2017,</strong> the Quad is back.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘China grumps that the Quad,</strong> a league of like-minded Indo-Pacific democracies, is an “Asian NATO” or “mini-NATO” hellbent on “containing” China,’ writes James Holmes of The Naval War College.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The Quad is no NATO.</strong> The Quad is an option.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It lays the groundwork for multinational operations </strong>should Quad leaders choose to avail themselves of that option, while not committing them to collective ventures from which they choose to abstain.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><br></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">With the Quad</strong> as an option in the Indo-Pacific and the NATO alliance in the North Atlantic, we have military configurations to deal with China.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">What about the range </strong>of other China issues from tech to trade?</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">These are increasingly covered</strong> by the Quad and NATO.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">But a more effective forum</strong> would the ‘D-10’ or ‘Democracy 10.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold"> </strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In May, Boris Johnson</strong> proposed forging an alliance of ten leading democracies—consisting of the G-7 countries plus Australia, India, and South Korea and dubbed the “D10”—to coordinate telecom policy and develop an alternative to China’s market leader Huawei, whose dominance in 5G technology has created widespread security concerns,’ reports Edward Fisher and Siddharth Mohandas in <em style="font-style: italic">Foreign Affairs.</em></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Johnson’s D10</strong> is just the type of body the world needs: a group of capable, committed, and cohesive democracies that could muster political will and real resources.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘It takes the historic strengths of the G-7</strong> and expands them by bringing in the most internationally-minded major democracies in Asia.’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘South Korea</strong> has led the world in COVID-19 containment and burnished its soft power by helping the rest of the world fight the virus.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Australia</strong> has established itself as an influential “middle power” and recently adopted an ambitious new defense strategy.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And India</strong> is Asia’s other emerging giant, and after its recent clash with China high in the Himalayas, it may elect to pursue closer ties with the United States.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Such a structure</strong> would enable the D10 to tackle an expansive array of projects.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"> </p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">An offshoot of the D-10</strong> is the ‘T-10’ or ‘Technology 10,’ proposed by Anja Manuel and others:</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This would build on</strong> a recent UK initiative to create a “Democracy 10” that aims to group G7 countries with South Korea, India, and Australia to co-ordinate on global 5G standards, and secure supply chains.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Tech </strong>10 should begin with a few narrow issues and then create additional groups as needed.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Topics might include:</strong> ensuring that Tech 10 countries maintain their lead in semiconductor design and production; co-ordinating on investment screening and export controls; regaining the lead in fintech innovation; and defining norms to govern safe uses of AI and other advanced technologies.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Future groups</strong> might co-ordinate resources for research on advanced biotechnology and quantum computing.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">'Coordinating among allies</strong> is the most effective way to counterbalance China.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Initiatives such as Made in China 2025 and China Standards 2035</strong> aim to end the technological lead of the west and its allies by dominating market share, controlling international standards, and hollowing out industrial capacity.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold"> </strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">Old alliances rethought,</strong> sort-of alliances solidified, and new alliance models proposed – all to bring the aggrieved together to counter China.</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">If Xi Jinping</strong> was worried before about being surrounded by enemies, then he is really in for some sleepless nights as these alliances converge on him.</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">1. 'Jim Mattis: Why U.S. Security Depends on Alliances—Now More Than Ever'</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/6S0ziq?track_p_id=1A6UCuPW_36ZnSLBK1LXNjQ" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/2P2LxiV-sg54VayqL9X2F0i__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/6S0ziq?track_p_id=ds6MCS6uS%40rGCp6UCuPW_2T" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'Jim Mattis: Why U.S. Security Depends on Alliances—Now More Than Ever'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="display:block; height: 400px; min-height: 300px; overflow: hidden; position: relative;"><a href="http://sco.lt/6S0ziq?track_p_id=22Y6UCuPW_RqXaTTbtqqnI%40" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/Px7rBeFH-MNmiU6xSnoSxTl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display: flex; width: 100%; height: 100%; object-fit: cover; position: absolute; top: 0; bottom: 0; left: 0; right: 0; margin: auto; border: none; pointer-events: none; "></a></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Foreign Affairs</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Jim Mattis</strong> | former U.S. Secretary of Defense</h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Jim Ellis</strong> | former Commander, U.S. Strategic Command.</h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Kori Schake</strong> | American Enterprise Institute</h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Joe Felter</strong> | Hoover Institution</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘The principal external threat the United States faces today is an aggressive and revisionist China—the only challenger that could potentially undermine the American way of life.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The United States</strong> today is undermining the foundations of an international order manifestly advantageous to U.S. interests, reflecting a basic ignorance of the extent to which both robust alliances and international institutions provide vital strategic depth.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In practice,</strong> “America first” has meant “America alone.” ’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That has damaged</strong> the country’s ability to address problems before they reach U.S. territory and has thus compounded the danger emergent threats pose.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The principal external threat the United States</strong> faces today is an aggressive and revisionist China—the only challenger that could potentially undermine the American way of life.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The United States’ goal, however,</strong> should not only be to deter great-power war but to seek great-power peace and cooperation in advancing shared interests.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘For that,</strong> the United States’ alliances and partnerships are especially crucial.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Credibly sustaining </strong>the United States’ forward military strategy in Asia will require changes and improvements on a number of fronts:’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘more effective </strong><a href="https://www.foreignaffairs.com/articles/united-states/2020-04-29/keeping-peace-nuclear-age" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">nuclear deterrence</strong></a><strong style="font-weight: bold">, </strong>enhanced capabilities in space and cyberspace, dramatic improvements in the ability to project military power, and a renewed willingness to shift resources from lesser priorities.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Since China is utilizing asymmetric strategies </strong>and technological innovation, the United States also needs a comprehensive approach to restoring what should be, and typically have been, its comparative advantages.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The nature of competition</strong> has changed dramatically since the Cold War: earlier struggles for technological dominance played out in secretive national labs and other classified, government-sponsored domains, but today, state-of-the-art technology with military applications is being developed largely in the commercial sector with advances driven by consumer demand rather than government directive.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Such technologies</strong> must be rapidly integrated into weapons systems and other defense platforms to empower new operational concepts and doctrines.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘It will also be imperative</strong> to maintain robust <a href="https://www.foreignaffairs.com/reviews/review-essay/2017-04-17/asia-trump-era" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">alliances in Asia</a>, especially with Australia, Japan, and South Korea; to strengthen relationships with partners such as India, Indonesia, and Vietnam that share an interest in maintaining a free and open region; and to participate more fully in and work to improve international organizations so that China cannot manipulate them to the United States’ disadvantage.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Those partnerships</strong> are also important when it comes to strengthening and diversifying critical supply chains and reducing the country’s dependence on China for critical goods and materials (particularly for rare-earth materials), which the pandemic has highlighted in alarming ways.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Crucially,</strong> the United States should not press countries to choose outright between the two powers.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘A “with us or against us” approach</strong> plays to China’s advantage, because the economic prosperity of U.S. allies and partners hinges on strong trade and investment relationships with Beijing.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">'Rather than treating countries as pawns</strong> in a great-power competition, a better approach would emphasize common codes of behavior and encourage states to publicly promulgate a vision for their country’s sovereign future and the types of partnerships they need to pursue it.'</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">'It would also expand the cooperative space</strong> in which all countries supporting a rules-based order can work together to advance shared interests.'</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">'Cooperation across different ideological systems</strong> is difficult but necessary.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘There should be opportunities</strong> to cooperate with China in areas of overlapping interests, such as pandemic response, climate change, and nuclear security.' </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In January,</strong> when President Joe Biden and his national security team begin to reevaluate U.S. foreign policy, we hope they will quickly revise the national security strategy to eliminate “America first” from its contents, restoring in its place the commitment to cooperative security that has served the United States so well for decades.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The best strategy</strong> for ensuring safety and prosperity is to buttress American military strength with enhanced civilian tools and a restored network of solid alliances—both necessary to achieving defense in depth.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 1px;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">2. Old Alliance: NATO on China</span></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="display:block; height: 400px; min-height: 300px; overflow: hidden; position: relative;"><a href="http://sco.lt/6kBK2y?track_p_id=cBmIvs6XwfEcF6Hueq6_5Rt" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/qZBwvZ32iMt0GGM0SosHhTl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display: flex; width: 100%; height: 100%; object-fit: cover; position: absolute; top: 0; bottom: 0; left: 0; right: 0; margin: auto; border: none; pointer-events: none; "></a></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/6kBK2y?track_p_id=1i6Hueq6_aLbiZgWWLfg5oV" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/K9fKxwrt-0GqvuYSovNp30i__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/6kBK2y?track_p_id=55QnKx6Hueq6_XlNWe625VS" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'NATO Should Expand Its Focus to Include China, Report Says'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The Wall Street Journal</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">“The really big message is that NATO has to adapt itself for an era of great power competition that includes not only Russia, but also China.”</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The North Atlantic Treaty Organization</strong> should devote much more of its time and resources to security threats posed by China even while seeking to deter Russian aggression, a high-level assessment of the alliance’s future says in a report to be made public Tuesday.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “The really big message</strong> is that NATO has to adapt itself for an era of great power competition that includes not only Russia, but also China,” said A. Wess Mitchell, who served as the top State Department official for Europe from 2017 to 2019 and co-chaired the group that wrote the 67-page report.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “China does not share our values,” </strong>Stoltenberg told reporters Monday. “It does not respect fundamental human rights and tries to intimidate other countries.” ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘A Chinese Embassy spokesman</strong> said China “has always been a builder of world peace and defender of the international order,” and that the country’s development is widely seen as a global opportunity.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘ “We hope NATO</strong> will have a correct view of China, look at China’s development and domestic and foreign policies in a rational manner,” the spokeswoman said.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/72LeN6?track_p_id=8vy2EUcPQ8zxBqI_UZ4R52t" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/KLz1CD8C2OIQYK8WWidfi0i__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/72LeN6?track_p_id=75giyzeb8zxBqI_dbUYD3Wl" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">‘NATO 2030: United for a New Era’</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">North Atlantic Treaty Organization</strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘The growing power and assertiveness of China is the other major geopolitical development that is changing the strategic calculus of the Alliance.’</strong></em></h2><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Excerpt from the 67-page paper: </strong><a href="https://www.nato.int/nato_static_fl2014/assets/pdf/2020/12/pdf/201201-Reflection-Group-Final-Report-Uni.pdf" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">Read ‘NATO 2030: United for a New Era’</strong></a></h3><p style="text-align: left;font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘NATO’s external security environment </strong>has changed dramatically since 2010, when the most recent NATO Strategic Concept was published.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That Strategic Concept</strong> recommended cultivating a strategic partnership with Russia, made limited mention of terrorism, and no mention of China.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Since then,</strong> fundamental shifts have occurred in NATO’s security environment that are likely to intensify over the coming decade and require greater efforts at both political cohesion and adaptations to NATO strategy.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Transnational threats and risks</strong> continue to pose a major challenge to the Alliance, from terrorism to the security challenges posed by pandemics, climate change, and migratory flows.'</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The changing instruments of state power</strong> – such as cyber and space capabilities – will continue to shape the nature of conflict.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Yet the main characteristic</strong> of the current security environment is the re-emergence of geopolitical competition – that is, the profusion and escalation of state-based rivalries and disputes over territory, resources, and values.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In the Euro-Atlantic area, </strong>the most profound geopolitical challenge is posed by Russia.'</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The growing power and assertiveness of China</strong> is the other major geopolitical development that is changing the strategic calculus of the Alliance.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘At their meeting in London in December 2019</strong>, NATO leaders stated that China’s growing influence and international policies present both opportunities and challenges that need to be addressed as an Alliance.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘China poses</strong> a very different kind of challenge to NATO than Russia.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Unlike the latter</strong> it is not, at present, a direct military threat to the Euro-Atlantic area.'</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Nevertheless,</strong> China has an increasingly global strategic agenda, supported by its economic and military heft.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It has proven its willingness </strong>to use force against its neighbours, as well as economic coercion and intimidatory diplomacy well beyond the Indo-Pacific region.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Over the coming decade,</strong> China will likely also challenge NATO’s ability to build collective resilience, safeguard critical infrastructure, address new and emerging technologies such as 5G, and protect sensitive sectors of the economy including supply chains.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Longer term,</strong> China is increasingly likely to project military power globally, including potentially in the Euro-Atlantic area.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China’s industrial policy</strong> and military-civil fusion (MCF) strategy are central components of this systemic challenge.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Its military modernisation</strong> in all domains, including nuclear, naval, and missile capabilities, introduces new risks and potential threats to the Alliance and to strategic stability.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Its approach</strong> to human rights and international law challenges the fundamental premise of a rules-based international order.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Grave risks are posed by China </strong>in some critical sectors such as telecommunications, space, cyberspace, and new technologies, as well as disinformation campaigns.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Since the start of the COVID-19 pandemic,</strong> China has conducted a disinformation campaign in numerous Allied states.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It has also committed </strong>widespread intellectual property theft with implications for Allied security and prosperity, as well as cyber attacks on NATO governments and societies which have been attributed by Allies as originating inside China.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘At the same time,</strong> because of its scale and economic trajectory, China is a driver of global growth, trade and investment, and a significant investor in many NATO countries.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It has begun to develop</strong> a strategic-commercial presence in the Euro-Atlantic Area via the Belt and Road Initiative, the 17+1 format, numerous bilateral agreements, and its MCF strategy.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Allies will continue</strong> to seek relations with China, build economic and trading ties and seek to work with China on issues such as climate change and biodiversity.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘China’s actions</strong> are central to prospects of tackling global challenges such as the Sustainable Development Goals, as it produces one-third of global emissions and almost half of global investment in green technology.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">3. A Sort Of Alliance: 'The Quad</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/6HnR2W?track_p_id=54CHoJ5LFBtO_zT2AAtJI2T" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/_WMiBTDcNqqcPnQt-JHFGUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/6HnR2W?track_p_id=71CR3d%40A5LFBtO_6i14oTzR" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'An Indo-Pacific Club Builds Heft'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr height="0"><td width="0"></td></tr><tr><td width="0"></td><td align="center"><div style="width:600px;"><img src="https://img.scoop.it/aVqwvk0AhYOi7LEdlBi8HDl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="border-style: none;" alt=""></div></td><td width="0"></td></tr><tr height="0"><td width="0"></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The Economist </strong></h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘President Xi Jinping has since “fundamentally altered the landscape” by projecting Chinese power across Asia and the Pacific. And so, since 2017, the Quad is back.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘When America, Australia, India and Japan</strong> met in 2007 for a “quadrilateral dialogue” on security matters, many bet the new grouping would fizzle, despite acquiring the much snappier title of “the Quad”.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Once non-aligned India,</strong> still suspicious of anything that smacked of an alliance, was non-committal, but in the end it was Australia, discomfited by China’s prickly reaction, that was the first to break ranks.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘What has changed, says Kevin Rudd,</strong> a former prime minister of Australia, is that President Xi Jinping has since “fundamentally altered the landscape” by projecting Chinese power across Asia and the Pacific.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And so, since 2017,</strong> the Quad is back.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘All four members</strong> have seen their relationship with China deteriorate.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Chinese incursions</strong> around islands that Japan controls but that China claims in the East China Sea have grown ever more frequent and forceful.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Australia faces Chinese restrictions</strong> on all manner of exports, from punchy Barossa Shirazes to coking coal, following its call for an independent inquiry into the origins of the coronavirus pandemic.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Indian and Chinese troops</strong> have been locked in a high-altitude border stand-off since the spring, resulting in the first fatal clashes in 45 years.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Defence ties</strong> are strengthening fast among the four countries.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This week their navies</strong> came together for the second phase of India’s annual “Malabar” exercises—Australia’s after a 13-year absence.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In principle,</strong> the exercises have nothing to do with the Quad.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In practice,</strong> they mark growing naval priorities among the four.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Submarine-hunting drills</strong> were prominent. Chinese subs are extending their reach into the Indian Ocean.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Malabar</strong> is just the start.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘America and India</strong> have signed agreements on logistical support, encrypted communications and the exchange of geospatial intelligence, such as secret maps.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘America, Australia and Japan</strong> are all preparing to operate America’s new f-35 fighter jet, allowing better integration among their forces.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘On November 17th Scott Morrison,</strong> Australia’s prime minister, agreed to a defence pact with his Japanese counterpart, Suga Yoshihide, facilitating joint operations.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Even India</strong> is “veering towards some sort of an alliance relationship” with the Quad countries, says Gurpreet Khurana, an Indian naval officer and think-tanker.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Quad does not convince everyone.</strong> Nick Bisley of La Trobe University in Melbourne says the emphasis on a “free and open Indo-Pacific” papers over big differences between the two halves of that vast region.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In the western Pacific,</strong> China is challenging the longtime hegemon, the United States.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In the Indian Ocean,</strong> the problem is not strong states but weak ones.'</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Other critics</strong> say the Quad is too exclusive a club.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Quad’s defenders </strong>retort that it embodies the grammar of modern diplomacy.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It is a compact bloc,</strong> rather than a sprawling multilateral organisation.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Yet it is capable of broadening its agenda</strong>, from disaster relief to cyber-security to ensuring supply chains for critical minerals.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And it is suitably elastic, </strong>for instance embracing New Zealand, South Korea and Vietnam during the early weeks of the pandemic to discuss economic recovery.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Advisers to President-elect Joe Biden</strong> have suggested that his administration will emphasise the formation of flexible coalitions of the willing on different issues, including pushing back against China.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That fits</strong> with the Quad’s catholic interests.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Tanvi Madan of the Brookings Institution</strong> in Washington predicts that, in security terms, the Quad countries will do “a lot of the heavy lifting in Asia”.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But even Mr Rudd,</strong> a supporter of the Quad, warns that anyone who thinks that these powers can ever be coequals to America “has got rocks in their head”.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This week America’s navy secretary,</strong> Kenneth Braithwaite, called for a new American fleet based in the Indian Ocean, akin to the Seventh Fleet in Japan.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘And China?’</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘At times,</strong> it claims that all the talk of a free and open Indo-Pacific is, as its foreign minister, Wang Yi, once put it, so much ocean spume.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘But if that is off the mark,</strong> so too is the claim of an Asian NATO-in-the-making.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Instead,</strong> in the region’s turbulent seas, the Quad, once adrift, is now shaping an increasingly confident course.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7apufw?track_p_id=cggL1rqkP64Fi7wTLm2_v3i" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/15iB4h5--Bc60ZQrlKal_0i__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/7apufw?track_p_id=dvsqy3VIYgI3TF7wTLm2_EM" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'Why the Quad Should Focus on a Strategy to Contain China'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr height="0"><td width="0"></td></tr><tr><td width="0"></td><td align="center"><div style="width:600px;"><img src="https://img.scoop.it/VmCPhsBBe3xhCQHHrnAXyTl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="border-style: none;" alt=""></div></td><td width="0"></td></tr><tr height="0"><td width="0"></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The National Interest</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">James Holmes</strong> | Naval War College</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘The Quad is no NATO. The Quad is an option.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘China grumps that the Quad,</strong> a league of like-minded Indo-Pacific democracies, is an “<a href="https://www.nationalreview.com/2020/10/an-asian-nato/" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">Asian NATO</a>” or “<a href="https://www.reuters.com/article/us-japan-usa-defence-idUSKBN27B1HM" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">mini-NATO</a>” hellbent on “<a href="https://global.oup.com/ushe/product/strategies-of-containment-9780195174472?cc=us&lang=en&" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">containing</a>” China.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘If only.’ </strong></li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Now, Beijing</strong> is not entirely wrong to liken the Quad to the North Atlantic Treaty Organization.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Quad governments</strong>—representing India, Australia, Japan, and the United States—sometimes do things reminiscent of the Atlantic alliance.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘For instance</strong>, the four Quad navies <a href="https://www.thehindu.com/news/national/exercise-malabar-concludes-in-arabian-sea/article33143581.ece" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">just finished up with this year’s Malabar exercise</a> in the Arabian Sea, showing they can work together and push back as China tries to make itself a serious if not dominant player in the Indian Ocean region.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘NATO navies</strong> commonly maneuver together, casting a counterweight to Russian ambitions in the Atlantic Ocean and adjacent seas.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘But one of these things</strong> is not like the other.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In reality,</strong> the Quad is a loose consortium, not a standing alliance anchored by a collective defense treaty.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The arrangement</strong> bears more resemblance to the pre-World War I “<em style="font-style: italic">entente cordiale</em>” than to NATO.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Quad is no NATO.</strong> The Quad is an option.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It lays the groundwork for multinational operations </strong>should Quad leaders choose to avail themselves of that option, while not committing them to collective ventures from which they choose to abstain.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Exercises like Malabar</strong> acquaint the partners with one another’s hardware, procedures, tactics, and cultural quirks.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘They build “interoperability,”</strong> or even “<a href="https://nationalinterest.org/blog/buzz/royal-navy-and-us-navy-are-embracing-interchangeability-could-it-backfire-171371" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">interchangeability</a>,” between particularly close partners.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Capability accumulated</strong> during peacetime does not have to be invented on the fly during wartime.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘What is that option for?</strong> Here it’s worth parsing <a href="https://nationalinterest.org/blog/reboot/nowhere-earth-will-be-safe-us-china-war-172523" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">China’s “containment” metaphor</a>. Containment, of course, is a Cold War term.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘According to George F. Kennan’s </strong><a href="http://www.historyguide.org/Europe/Kennan.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">iconic diagnosis </strong></a><strong style="font-weight: bold">of the Soviet challenge</strong> and his prescribed remedy, resisting communist expansionism would deprive Marxism-Leninism of its motive force over time.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘If denied the ability</strong> to claim that communism stood at the vanguard of history and was sweeping the globe, Moscow and fraternal governments would mellow over time. They might fall.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Containment</strong> was both a policy and a strategy.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘As a policy,</strong> it does not fit contemporary China. Apart from being a big, ambitious, often domineering power, China today is not the Soviet Union circa 1949 when the <a href="https://www.nato.int/cps/en/natolive/official_texts_17120.htm" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">North Atlantic Treaty</a>—the Atlantic alliance’s founding document—was signed.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Beijing does not appear intent</strong> on subverting or overthrowing foreign governments and turning them communist.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It is economically intertwined</strong> with the noncommunist world <a href="https://nationalinterest.org/feature/secrets-and-lies-role-truth-great-power-information-warfare-170579" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">to a degree unimaginable </a>for the Soviet Union.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Policy vis-à-vis China </strong><a href="https://nationalinterest.org/blog/reboot/what-if-china-launched-surprise-attack-us-military-173082" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">is something different</a> and merits a different title.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘As a strategy</strong>—in particular a military and naval strategy—containment is a fitting metaphor.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This is clearest in East Asia,</strong> where the U.S. armed forces are reconfiguring themselves to fight among the islands, denying China’s navy and air force <a href="https://nationalinterest.org/blog/reboot/without-allies-america-has-no-shot-competing-china%E2%80%99s-huge-navy-173051" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">control of sea and sky</a>.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘This approach comes straight out of the Cold War playbook,</strong> from the days when Secretary of State Dean Acheson called for making the first island chain America’s “<a href="https://www.cia.gov/library/readingroom/docs/1950-01-12.pdf" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">defensive perimeter of the Pacific</a>.” ’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The approach applies in the Indian Ocean</strong> as well, albeit in a fashion that is more scattered and not so visually striking when plotted on the map.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Curbing Beijing’s effort</strong> to gain military access to Indian Ocean seaports is itself a way to contain China’s martial reach—and one well worth pursuing.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Quad members</strong> may shy away from the containment metaphor, and that is understandable.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘They mainly need</strong> to be precise when explaining their purposes and how they intend to put power to work attaining them.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘That means</strong> being circumspect about the terms they use to describe China policy.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘But they should own it</strong> on the military side.’ </li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">4. New Alliance Proposal: 'D-10'</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7KVyhE?track_p_id=4IjCb5dyiTe_Y2nOZe1Nd2J" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/2P2LxiV-sg54VayqL9X2F0i__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/7KVyhE?track_p_id=05dyiTe_qULcpc4Vsn2h4FW" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'A Council of Democracies Can Save Multilateralism'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="display:block;margin-bottom: 0;height: 400px;min-height: 300px;overflow: hidden;position: relative;"><a href="http://sco.lt/7KVyhE?track_p_id=bEFnJ3Jc%40GVy5dyiTe_htb3" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><img width="100%" src="https://img.scoop.it/u6kUY9pOPdNikvw2MYU0hjl72eJkfbmt4t8yenImKBWpnB4YU4myT9-8UqDpoJyK" style="display: flex; width: 100%; height: 100%; object-fit: cover; position: absolute; top: 0; bottom: 0; left: 0; right: 0; margin: auto; border: none; pointer-events: none; "></a></td></tr><tr><td style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Foreign Affairs</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Edward Fishman</strong> | Atlantic Council</h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Siddharth Mohandas</strong> | Center for a New American Security</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘Johnson’s D10 is just the type of body the world needs.'</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In May, Boris Johnson</strong> proposed <a href="https://www.businessinsider.com/how-uk-proposed-telecom-coalition-could-counter-huawei-2020-6" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">forging an alliance of ten leading democracies</a>—consisting of the G-7 countries plus Australia, India, and South Korea and dubbed the “D10”—to coordinate telecom policy and develop an alternative to China’s market leader Huawei, whose dominance in 5G technology has created widespread security concerns.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Johnson’s D10</strong> is just the type of body the world needs: a group of capable, committed, and cohesive democracies that could muster political will and real resources.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘It takes the historic strengths of the G-7</strong> and expands them by bringing in the most internationally-minded major <a href="https://www.foreignaffairs.com/articles/south-asia/2019-01-04/future-democracy-south-asia" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">democracies in Asia.</a>’ </p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘South Korea</strong> has led the world in COVID-19 containment and burnished its soft power by helping the rest of the world fight the virus.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Australia</strong> has established itself as an influential “middle power” and recently adopted an ambitious <a href="https://www.defence.gov.au/strategicupdate-2020/" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">new defense strategy</a>.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘And India</strong> is Asia’s other emerging giant, and after its recent clash with China high in the Himalayas, it may elect to <a href="https://www.foreignaffairs.com/articles/asia/2020-06-22/china-losing-india" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">pursue closer ties with the United States</a>.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Such a structure</strong> would enable the D10 to tackle an expansive array of projects.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In the security realm,</strong> the D10 could coordinate the enforcement of norms, such as<a href="https://warontherocks.com/2020/04/same-as-it-ever-was-chinas-pandemic-opportunism-on-its-periphery/" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"> </a><a href="https://warontherocks.com/2020/04/same-as-it-ever-was-chinas-pandemic-opportunism-on-its-periphery/" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">freedom of navigation, sovereignty, and territorial integrity</a>.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It could establish</strong> collective defense frameworks against cyberattacks and other nonmilitary threats.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The D10</strong> would also be a natural forum for <a href="https://www.lawfareblog.com/how-fix-americas-failing-sanctions-policy" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">coordinating multilateral sanctions</a> and<a href="https://www.foreignaffairs.com/articles/2019-08-12/internet-freedom-league" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"> setting and policing behavioral standards in cyberspace</a>.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The D10</strong> has similar potential in the economic realm.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The COVID-19 pandemic</strong> has unleashed a devastating economic crisis likely to exacerbate poverty and inequality worldwide.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The D10 could chart a path</strong> out of this abyss by helping to address wealth and income disparities within countries while also making supply chains more resilient.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘They could also</strong><a href="https://www.aspistrategist.org.au/democracies-need-alliances-to-secure-vital-supply-chains/" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold"> </strong></a><a href="https://www.aspistrategist.org.au/democracies-need-alliances-to-secure-vital-supply-chains/" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;"><strong style="font-weight: bold">design alternative supply chains</strong></a> for critical products—such as pharmaceuticals, medical equipment, computer chips, and aircraft parts—that can come online rapidly in times of crisis.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Climate change,</strong> too, would be susceptible to concerted action on the part of the D10.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;">‘<strong style="font-weight: bold">To ensure that its members </strong>continue to lead the world in science and technology, the D10 could <a href="https://www.cnas.org/publications/reports/forging-an-alliance-innovation-base" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">pool resources</a> to finance and develop cutting-edge innovations.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td style="height:2rem; font-size:0; background-color:#f5f5f5;"> </td></tr><tr><td width="100%"><span style="display: block;margin-bottom: 0;padding: 10px;color:#ffffff;background-color:#c80000;text-align:center;font-family:'Lato';font-size:1.75rem;line-height:2.75rem;font-weight:bold;">5. Another New Alliance Proposal: 'T-10'</span></td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7cgJ1M?track_p_id=eOPuN1QnM%40E%40zUj6quoog_4" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/zxbyrGBKPhFFZLzMYqfYnUi__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/7cgJ1M?track_p_id=3IIy6quoog_3q%402xU3Lv5Xu" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'US, Europe and UK Must Unite to Keep Chinese Tech at Bay' </a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr height="0"><td width="0"></td></tr><tr><td width="0"></td><td align="center"><div style="width:600px;"><img src="https://img.scoop.it/JMIvVayyNOHKcmyz76X8jzl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e" style="border-style: none;" alt=""></div></td><td width="0"></td></tr><tr height="0"><td width="0"></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">The Financial Times</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Anja Manuel</strong> | Rice, Hadley, Gates & Manuel</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘It is time for a Tech 10.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘After the second world war</strong>, Europe and the US created an international order.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘They established norms</strong> for peaceful economic relations, and international standards governing everything from telecommunications to satellites and safe flight paths.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘It is now time</strong> to do the same for tech development:’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘a proposal</strong> I call the “Technology 10”.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘This would build on</strong> a recent UK initiative to create a “Democracy 10” that aims to group G7 countries with South Korea, India and Australia to co-ordinate on global 5G standards, and secure supply chains.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘So far,</strong> no country has engaged meaningfully.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The UK and US</strong> must double down on the effort.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘If Joe Biden is elected US </strong>president in November, UK prime minister Boris Johnson will have a real partner in such an endeavour.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Mr Biden</strong> has said he would “build a united front of friends and partners to challenge China’s abusive behaviour” in stealing “technology and intellectual property”; confront its “high-tech authoritarianism”; and build a safe 5G infrastructure and the “rules, norms and institutions” to govern the global use of new technologies.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The Tech </strong>10 should begin with a few narrow issues and then create additional groups as needed.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Topics might include:</strong> ensuring that Tech 10 countries maintain their lead in semiconductor design and production; co-ordinating on investment screening and export controls; regaining the lead in fintech innovation; and defining norms to govern safe uses of AI and other advanced technologies.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Future groups</strong> might co-ordinate resources for research on advanced biotechnology and quantum computing.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">'Coordinating among allies</strong> is the most effective way to counterbalance China.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Initiatives such as Made in China 2025 and China Standards 2035</strong> aim to end the technological lead of the west and its allies by dominating market share, controlling international standards, and hollowing out industrial capacity.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘It is time</strong> for like-minded nations to unite. It is time for a Tech 10.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" width="100%" style="background-color:#f5f5f5;"><tbody><tr><td style="height:2rem; font-size:20px;"> </td></tr></tbody></table></div><div><table class="noBorder" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td class="noPadding" style="padding: 3.5%;"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7uqdLU?track_p_id=d%403iqWMiSfWCFz6Bfl1i_iN" target="_blank" title="SourceLogo" style="color: #001544!important;text-decoration: none!important;border-bottom: 0px solid #008dc8!important;"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/2P2LxiV-sg54VayqL9X2F0i__cjguAuwrRM5-qsdIhQ=" style="border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%; color:#001544; font-size:27px; line-height:42px; font-weight:700; font-family: 'Lato'"><a href="http://sco.lt/7uqdLU?track_p_id=4egp%406Bfl1i_Q6x4lSrFXbW" style="color:#001544; text-decoration: none; border-bottom:none;" target="_blank">'How Should Democracies Confront China’s Digital Rise? Weighing the Merits of a T-10 Alliance'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td class="noPadding" style="padding:0 3.5% 3.5% 3.5%;"><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Council on Foreign Relations</strong></h3><h3 style="font-family: 'Lato';font-size: 14px;line-height: 21px;font-weight: normal;color: #5d5d5f;display: block;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;"><strong style="font-weight: bold">Steven Feldstein</strong> | Carnegie Endowment</h3><h2 style="text-align: center;font-family: Georgia, serif;font-size: 20px;line-height: 34px;font-weight: normal;color: #c80000;display: block;background-color: #f5f5f5;padding: 2.5% 5%;margin-block-start: 2rem;margin-block-end: 2rem;"><em style="font-style: italic"><strong style="font-weight: bold">‘Many experts are proposing the creation of “Technology 10” or “T-12” groupings to counter China’s digital ambitions, safeguard the West’s technological leadership, and allow liberal democracies to shape emerging technologies.’</strong></em></h2><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘An idea that is gaining traction</strong> is for the United States to initiate an alliance of democracies to combat China’s technological expansion and check the spread of digital autocratic norms.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Specifically,</strong> many experts are proposing the creation of “<a href="https://www.ft.com/content/bc7abf86-f13e-4025-a120-004361aef21a" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">Technology 10</a>” or “<a href="https://www.foreignaffairs.com/articles/united-states/2020-10-13/uniting-techno-democracies" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">T-12</a>” groupings to counter China’s digital ambitions, safeguard the West’s technological leadership, and allow liberal democracies to shape emerging technologies.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘While such alliances are instinctively appealing,</strong> especially in light of the Trump administration’s abdication of international leadership, policymakers should ask tough questions about what a T-10 or T-12 alliance would accomplish and whether putting together such a group is even feasible.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘To start, what would be the purpose of a democratic tech alliance?’</strong></p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Commentators cite</strong> a variety of challenges that a T-10 or T-12 group could tackle.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The potential scope is wide,</strong> such as ensuring China doesn’t stake an insurmountable lead in emerging technologies such as artificial intelligence (AI) and quantum computing, developing a more coherent framework for deterring cyberattacks, and providing a counterweight to China’s digital authoritarian ambitions.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The breadth of its agenda </strong>underlies its potential weakness—unless policymakers confine the group’s mandate to a core set of issues, its value is doubtful.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘A second challenge is whether a small club of democracies represents the best way to counter China’s digital rise.’</strong></p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘By design,</strong> such a narrow group of ten or twelve countries will exclude many digital “<a href="https://www.newamerica.org/cybersecurity-initiative/reports/digital-deciders/internet-governance-and-todays-context/" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">swing states</a>,” such as Indonesia, Kenya, or Brazil, which will either facilitate or thwart China’s rise in their neighborhoods.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The paradoxical result </strong>is that battlegrounds of digital competition—regions like Southeast Asia, Africa, and Latin America—would remain underrepresented under a T-10/T-12 configuration.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Additionally,</strong> the proposed member states of a T-10/T-12 alliance bring contrasting tech outlooks that will be challenging to reconcile.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘The European Union</strong>, for instance, has made significant progress developing a unified approach on tech policy that will culminate in the release of the <a href="https://www.europarl.europa.eu/RegData/etudes/STUD/2020/648780/IPOL_STU(2020)648780_EN.pdf" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">Digital Services Act</a>[PDF] (regulating how tech platforms with a gatekeeping role may operate in Europe), the <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1352" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">European Democracy Action Plan</a> (featuring a strong emphasis on combatting online disinformation), and <a href="https://www.sciencemag.org/news/2020/02/europe-plans-strictly-regulate-high-risk-ai-technology" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">laws regulating AI technology</a> in the coming months.’</li><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Not only will these regulations</strong> generate disagreement with the United States, but they could bring serious financial costs to American tech companies.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘These differences</strong> point to fundamental gaps between how Europe and the United States view core issues of privacy, government regulation, and data use.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘Finally,</strong> before the United States assumes global leadership on tech policy, it needs to determine what its own orientation will be.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘Domestic consensus</strong> on tech policy appears to be breaking down.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘In recent months,</strong> Republicans and Democrats have clashed about whether to <a href="https://www.cnbc.com/2020/10/15/fcc-chairman-says-he-will-to-clarify-tech-legal-shield-section-230.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">revise intermediate liability protections</a> for internet platforms, whether social media sites are <a href="https://www.washingtonpost.com/technology/2020/09/23/trump-doj-censorship-section-230/" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">demonstrating bias</a> against conservative commentators, and whether platforms like <a href="https://www.nytimes.com/2020/10/20/technology/google-antitrust.html" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">Google</a> have formed illegal monopolies.’</p><ul style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 1rem!important;margin-bottom: 1rem!important;margin-block-start: 0px!important;margin-block-end: 0px!important;margin-inline-start: 0px!important;margin-inline-end: 0px!important;padding-left: 40px!important;padding-inline-start: 20px!important;"><li style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;margin-top: 1rem!important;margin-bottom: 0rem!important;padding-top: 0rem!important;padding-bottom: 0rem!important;padding-left: 0rem!important;"><strong style="font-weight: bold">‘In the meantime,</strong> President Trump has <a href="https://www.scmp.com/comment/opinion/article/3105716/forcing-tiktok-sale-us-taking-page-out-chinas-playbook" rel="nofollow" style="color: #001544!important;text-decoration: none!important;border-bottom: 1px solid #008dc8!important;">borrowed a page from China's playbook</a> by attempting to unilaterally ban TikTok and WeChat from the U.S. marketplace and pressing for TikTok’s sale to a politically favored American company.’</li></ul><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"><strong style="font-weight: bold">‘The United States</strong> cannot credibly lead a democratic tech agenda without first resolving its internal contradictions and laying out much more clearly its own policy direction on a host of contentious issues.’</p><p style="font-family: Georgia, serif!important;font-size: 17px!important;line-height: 30px!important;font-weight: normal!important;color: #001544!important;display: block!important;margin-top: 0rem!important;margin-bottom: 0rem!important;margin-block-start: 1.5rem!important;margin-block-end: 0.75rem!important;margin-inline-start: 0rem!important;margin-inline-end: 0rem!important;"></p></td></tr></tbody></table></div></td></tr></tbody></table></td></tr></tbody></table></div>

CHINAMacroReporter Archive

December 2020

Season’s Greetings!

December 25, 2020

'Pound for Pound, Taiwan Is the Most Important Place in the World'

December 17, 2020

Traitors Everywhere!

December 12, 2020

‘China Prefers to be Admired, but will Settle for Fear.’

December 9, 2020

China Policy: The View from the U.S.-China Commission

December 5, 2020

The Best Strategy to Counter China

December 2, 2020

CHINAMacroReporter Archive

December 2020

Season’s Greetings!

December 25, 2020

'Pound for Pound, Taiwan Is the Most Important Place in the World'

December 17, 2020

Traitors Everywhere!

December 12, 2020

‘China Prefers to be Admired, but will Settle for Fear.’

December 9, 2020

China Policy: The View from the U.S.-China Commission

December 5, 2020

The Best Strategy to Counter China

December 2, 2020

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