Diana Choyleva

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US China Relations: Biden Assembles United Front Against Beijing

No time-out for tensions in the US-China relationship On his European diplomatic blitz, President Joe Biden made countering China a core part of discussions, and joint statements, with the G7, NATO and the EU. Beijing created new legal tools to retaliate against US sanctions, which put global firms in the crosshairs of their conflict. This article is a summary of important US China news in June 2021. Major democracies rallied together “to issue extraordinary back-to-back rebukes of Beijing, marking a shift toward collective action and pushing back against Xi Jinping’s strategies to position China as a global leader,” wrote the Wall Street Journal. China’s Foreign Ministry rejected the two statements as the misguided work of “small circles” and primarily the US. The G7’s Build Back Better World initiative (B3W) to counter Beijing’s Belt and Road Initiative was welcomed by countries in China’s immediate orbit of influence, but must overcome doubts…

US China Relations: Bills, Boats and a “Battle for the Century”

After 100 days as US President, Joe Biden showed little sign of backing down from a tough stance towards an equally stubborn Beijing that has kept tensions high in US China relations. The USA is “in competition with China” to “win the 21st century”, Biden told Congress. With stepped-up US reconnaissance in the disputed South China Sea, and a major bill to counter China in the Senate, only climate change appeared a promising area for co-operation. This article is a summary of important US China news in April 2021. It will be a high-stakes, high-tech battle, said Biden. “China and other countries are closing in fast. We have to develop and dominate the products and technologies of the future.” While they looked old school to non-experts, the three high-tech, world-class warships Xi Jinping commissioned on 23 April confirmed China’s ambitious naval expansion, military modernisation and preparation to take the island of…

China’s Economy: “A Free Market for Unfree People”?

Enodo Economics Chief Economist, Diana Choyleva with her thought of the day. https://vimeo.com/511604144 ‘’A free market for unfree people’’ This is how one author describes the vision of the world that China is offering. Free market for unfree people is a vision where prosperity and individual freedom no longer need to be intertwined. A vision compelling for all authoritarian regimes. A vision finding fertile ground in Western educational institutions, especially among the young. But does this phrase describe accurately China’s offering, and is China’s vision realistic in bifurcated world of competing ideologies? The answer to the first question is, no. China has allowed market forces to play a larger role in its economy, but it is not a free market economy. Land, labour, capital don’t move freely, and top-down party control is critical for all economic outcomes. Either way, whatever we call it, China’s system has delivered prosperity for its…

In Final Days, Outgoing President Trump Ramps up Pressure on US China Relations

The many challenges troubling US China relations stayed firmly in the news as the USA transited from the Donald Trump to the Joe Biden era. In its final days, the Trump administration did nothing to ease US China tensions, rather they raced to increase the pressure on Beijing. While Beijing may hope for a softer approach from the new president, his secretary of state nominee, Antony Blinken, said Trump’s tough approach to China was right but the tactics were wrong. This article is a summary of important US China news in January 2020. Blinken said he favoured cooperation with China on climate change and other issues, but reiterated that genocide had been committed against Uighur Muslims. John Kerry pledged that the White House would not make unsavoury concessions to China in exchange for climate progress. “China is a strategic adversary,” said US ambassador to the UN nominee Linda Thomas-Greenfield. Treating China as a “strategic…

Bitcoin To Play a Role in China US Relations?

Bitcoin in your wallet? China is mining it in Xinjiang. Enodo Economics Chief Economist, Diana Choyleva, with her thought of the day. https://vimeo.com/511603568 Bitcoin is crashing after reaching record hights. Views on it vary from Larry Summers saying it’s here to stay to Keneth Rogoff, the perennial sceptic, saying that government won’t allow Bitcoin on a large scale. I’ll say that the rationale for holding Bitcoin is very different when you think of it as digital gold, rather than digital currency. When it comes to demand, Asia and a big chunk of that is China, dominates cryptocurrency activity globally, accounting to 43%. Interestingly, among the American adults, the majority of whom are acquainted with cryptocurrencies, it’s the millennials that are the most avid buyers. And of course, we now have institutional investor interest in Bitcoin, but it is on the supply side that China absolutely dominates, accounting for 65% of…

Is China’s Victory Over Covid Real?

Enodo Economics Chief Economist, Diana Choyleva with her thought of the day. https://vimeo.com/511643865 I am sitting in London under lockdown and today I was choosing the design for our Chinese New Year greeting card. And it made me ask myself this question – Is China’s victory over Covid real and does the most gigantic human migration about to ensue over the CNY holidays pose a new Covid threat? Well through draconian lockdowns and Beijing’s ability to marshal its population into compliance, China did snatch pandemic victory from the jaws of Covid defeat. In that sense its victory is real, but Beijing genuinely believes that its ability to contain the pandemic shows yet again that its system works better. It thought the same after the Global financial Crisis. But in both cases the authorities have failed to acknowledge China’s role in precipitating each crisis, and as a result in the case…

US China Tensions Remain High as 2020 Draws to a Close

Tensions stayed high between the US and China as they ended 2020 in the same increasingly confrontational manner that characterised the rest of this deeply troubled year: swapping sanctions and accusations of foul play. This article is a summary of important news related to China US relations in December 2020. Even as time ticked down on his administration, President Trump and his opposite number kept the Sino-US relationship in turmoil with several moves that underscored strained ties between the world’s two strongest economies. China expressed anger after Trump signed into law measures to bolster support for Tibet and Taiwan, including sanctions against Chinese officials who interfere in the selection of the Dalai Lama’s successor, and support for Taiwan’s meaningful participation in UN bodies and regular arms sales. The US ambassador to the UN will visit Taiwan, said US Secretary of State Mike Pompeo, who called Taiwan “a reliable partner and…

Tough Times for Sino-US Relationship Despite Biden US Presidency Election Win

In late November, Chinese leader Xi Jinping finally congratulated his next US opposite number on his election victory over Donald Trump, despite Joe Biden calling Xi, more than once on the campaign trail, a “thug” for China’s human rights abuses. This article is a summary of major news items concerning China US relations in November 2020. Amid the vote count, Chinese Vice-Foreign Minister Le Yucheng hoped the next US administration would meet China halfway, manage differences and push China-US ties along the right track. Yet turmoil and a very bumpy ride still look more likely, with tensions high over trade, the military, the South China Sea, cyberspace – and actual space. Senior Trump officials said they were pushing for new hard-line measures against Beijing, even as he winds down his final two months in office. Among multiple thorny issues for Biden to tackle, the Trump administration approved the latest in a series of arms sales to Taiwan, while…

US Trade War With China Misses Targets as Election Nears

President Trump kept up the tough talk on China, who he blamed for hurting the world economy with Covid-19, but his trade war that has defined US China relations appeared to miss key targets as the election neared on 6 November. Tensions soared over Taiwan as Beijing stepped up military preparations to improve its invasion capability, and the US State Department approved the potential sale of three weapons systems to Taipei. This article is a summary of major news items concerning China US relations in October 2020. Focus on “preparing to go to war” Xi Jinping told marines at a Guangdong military base, while the PLA increased preparations by air, sea and land to exert pressure on the Taiwanese government. The USS Barry passed through the Taiwan Strait, enraging China. At least 60 American warplanes conducted close-up reconnaissance flights near China in September, and analysts concluded that the US is preparing for future long-distance missions in…

US China Turmoil May Split the Globe: UN

Sino-US decoupling took its most prominent global stage to date when Donald Trump and Xi Jinping brought their virus row and trade tensions to the 75th United Nations General Assembly. “We must hold accountable the nation which unleashed this plague onto the world, China,” said Trump. This article is a summary of major news items concerning China US relations in September 2020. “Any attempt of politicising the issue or stigmatisation must be rejected,” said Xi, also by pre-recorded video, who urged countries to respect the WTO and not bury their heads in the sand “like an ostrich” to avoid globalisation. “We are moving in a very dangerous direction,” warned António Guterres, the UN secretary general. “Our world cannot afford a future where the two largest economies split the globe in a great fraction, each with its own trade and financial rules and internet and artificial intelligence capacities.” Yet exactly such splitting continued throughout the month. In the digital war,…

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