China Strategic Review
China Strategic Review - 3-4/2021
Release Time:2021-04-15

Support to the Development of Small and Medium-sized Enterprises Should be Elevated to the Level of China's National Strategy

Yang Yiyong/Zhou Shi

In the new stage of China's development, the development trend and challenges facing China's small and medium-sized enterprises are the evolution of international competition from individual competition to industrial cluster competition, the transformation of innovation mode from imitation innovation to independent innovation, and the advancement of economic form from industrial economy to digital economy. It is imperative to make supporting the development of small and medium-sized enterprises a national strategy, and support them to grow through the path of cluster supply chain network, breakthrough in innovation and digital empowerment. By 2035, a number of innovative small and medium-sized enterprises and industrial clusters with global competitiveness will be formed.

Thoughts on Strengthening China’s Epidemic Surveillance Capacity in Rural Areas

Yang Yiyong/Wang Zhe

Rural areas have become the weakest areas of COVID-19's prevention and control in China. Whether the epidemic surveillance network in rural areas can be built in time and the ability to detect suspected patients can directly influence the overall situation of epidemic prevention and control in China. This round of epidemic situation in Shijiazhuang and Xingtai of Hebei Province has exposed two major problems: the risk awareness of grassroots officials and communities need to be raised, and the ability of primary medical system to detect suspected patients need to be improved. In order to effectively prevent the rebound of the epidemic situation during the Spring Festival, it is suggested that short, medium and long-term measures should be combined, and priority should be given to the surrounding rural areas in the low temperature areas of north of the Qinling Mountains-Huaihe River line, so as to shore up the weak spots of rural epidemic situation monitoring.

A Follow-up of the Latest Development of Global Terrorism and Anti-Terrorism in the Post-Islamic State Era

Yuan Ze

On January 21, 2021, two successive suicide bombings occurred in the urban area of Baghdad, the capital of Iraq, killing 32 people and injuring 110 people. Since the remnants of the Islamic State (IS) were forcibly expelled from Baghouz in Eastern Syria by the Syrian democratic Army (US backed Kurdish armed forces) on March 22, 2019, except for sporadic terrorist attacks, there have been no large-scale terrorist attacks involving more than 100 people in Baghdad or even in Iraq.

I. Is the Islamic State Bouncing Back?

The intention of Islamic State to kill civilians in Baghdad city can be summarized as follows: First, in the period of Post IS and Post Baghdadi, it will continue to create panic and expand effects to promote the sense of its existence as a state. Second, it is to provoke ethnic conflicts, intensify sectarian conflicts, increase political unrest, and thus deplete the ability of the Iraqi government to maintain stability and resources to combat terrorism, thus creating conditions for a comeback. Third, to regain prestige in the terrorist organizations outside Iraq and Syria, so as to integrate the Middle East and Africa branches of Al Qaeda and expand their sphere of influence by virtue of the aura of Islamic State. Fourth, it is to encourage extremist organizations or terrorists who have infiltrated into European and American countries and even some Asian countries, so as to help them recruit troops and develop new revenue channels with the help of the brand effect of Islamic State in the past and with the spread of coronavirus to reinforce its forces.

II. Changes in the Focus of the War on Terror

For the international coalition forces led by the US against ISIS, the terrorist attack on Baghdad on Jan. 21 indicates the beginning of a new round of anti-terrorism war in Iraq. That is to say, after the military capture of Ramadi, Fallujah, Mosul and other towns once hold by terrorists, the war on terror has shifted from the armed attack and defense in the frontal battlefield to the invisible secret warfare in the underground battlefield. That is, to compete with a more scattered, hidden, cunning and crazy strategy of the Islamic State. In this stage, the confrontation highlights the comprehensive, long-term, multi-field and multi-level characteristics, including to starve the organization, purify the network, and deradicalize terrorists. This battle will be as difficult as the elimination of the visible caliphate. On October 26, 2019, ISIS leader Abu Bakr al-Baghdadi hiding in northern Syria, was beheaded by US troops. Baghdadi's martyrdom has led to the resurgence of the Islamic State.

III. The Fine Mess Left by US War on Terror

In more than 20 years, the Pentagon has paid a heavy price sending troops to Iraq, and has not achieved any results, much less to win no local people's hearts. What it has brought to the locals has turned out to be turbulence. Therefore, the conditions to eradicate the remains of ISIS and other terrorist forces in Iraq are far more than ground forces, advanced equipment, ballistic missiles and drone attacks. Biden government, trapped by domestic epidemic, business, social, ethnic and political conditions, has no intention of undertaking the unfinished mission left by Trump government. It must be said that this is totally abandonment. The US, with two oceans as protection, is running away from Iraq in order to implement a high-intensity big power competition strategy. But European countries, close to the Middle East and North Africa, dare not to let their guard down in case the spread of the terrorism across the shore.

Since September 11, 2001, the international war on terror has been a long journey with trials and hardships. When the White House is eager to withdraw troops from Iraq, the complex situation of the new Middle East landscape and the severe terrorist situation in the African continent indicate that international terrorist activities have entered a new active period, which is very risky and has immense harm. No country is safe until all is safe. Although ISIS has been seriously damaged, the remnants and heresy are overflowing, and all countries are threatened by it. National security and common security complement each other, and international security and cooperation security are on the same table. Iraq is also an important stakeholder in the security interaction with Egypt, Jordan, Syria and other neighboring countries, as well as with the United States and Europe. Therefore, for Iraq's short counter-terrorism capability, relevant countries should respect sovereignty, increase support, benefit each other and take an integrated approach based on common security objectives, so as to achieve sustainable security with interethnic harmony and social stability.

The Status Quo and Prospects of China-U.S. Trade and Economic Relations

Li Changjiu

According to the statistics of the General Administration of Customs of China, the trade volume between China and the United States increased by 8.3% year on year in 2020, reaching 586.72 billion US dollars. China's trade surplus was 316.9 billion US dollars, more than 250.7 billion US dollars in 2016. China remains the largest trading partner of the United States. The establishment of diplomatic relations between China and the United States put an end to mutual estrangement for more than 20 years, transcended ideological differences. Since then, the complementary and mutually beneficial bilateral cooperation has developed rapidly. The bilateral trade volume between China and the United States has increased from US $2.45 billion in 1979 to US $583.7 billion in 2017, an increase of 237 times in 38 years. It has not only brought great benefits to the Chinese and American people, but also greatly promoted the development and prosperity of world economy and trade.

On March 8, 2018, President Trump officially announced that the United States would impose 25% and 10% tariffs on imported steel and aluminum, starting global trade frictions and provoked a trade war with China on the ground of a massive trade deficit with China. However, the US trade deficit with China in 2019 was almost the same as that in 2016. Stephan Roach, a former Morgan Stanley Asia chairman, has pointed out that the United States has trade deficits with 102 nations, but the United States is still the country that benefits the most from the world. As the research report published by third party such as Deutsche Bank confirms, for a long time, the United States has actually gained more net commercial benefits in bilateral trade between China and the United States.

In early 2021, after Joe Biden takes office, the research report jointly released by Amcham China Center and Rhodium Group on February 17 deeply analyzed that if the US-China Economic and trade relations were completely decoupled, it would seriously damage the US interests. In the article The factors that could lead to war between the US and China on March 2, Harvard University Professor Joseph Nye pointed out, “American hubris is always a danger but so is exaggerated fear, which can lead to overreaction...Both sides must beware of miscalculation. After all, more often than not, the greatest risk we face is our own capacity for error.” In the article on March 3, Michael Klare point out, "the United States and China should form a" survival alliance " put forward, "The only way to avert catastrophic climate change is for the United States to avoid a new cold war with China by devising a cooperative set of plans with Beijing to speed the global transition to a green economy.”

So far, China has become the world's second largest economy, the largest industrial country, the largest goods trading country, the largest foreign exchange reserve country, the largest inflow country of foreign direct investment (FDI) and the first engine of world economic growth. China's 14th Five-Year plan has been implemented to facilitate the domestic and international circulations. China's vast market is full of great vitality and business opportunities.

President Biden asked European countries to join hands with the United States together for the long-term strategic competition with China during the G7 and Munich Security meetings in March. French President Macron made clear in February at the Atlantic Council that the EU should not work with the United States against China. In order to rebuild a fair and reciprocal world economic system, the G7 needs to strengthen cooperation with the G20, especially with China, Merkel said at a press conference after the G7 meeting. In his article Why the US should pursue cooperation with China on February 25, 2021, Jeffrey D. Sachs, Professor of Sustainable Development and Professor of Health Policy and Management at Columbia University, held that “Biden’s foreign policy with China should begin with a search for cooperation rather than a presumption of conflict. US diplomacy would be wise to aim for engagement with China in these areas. Both the US and China have much to gain from it: peace, expanded markets, accelerated technological progress, the avoidance of a new arms race, progress against Covid-19, a robust global jobs recovery, and a shared effort against climate change.”

China's Fight Against Covid-19 has Won Support and Praise from Russia

Yu Sui

In the course of the development of China-Russia comprehensive strategic cooperative partnership, the joint fight against the coronavirus has become an important content in recent years. One of Russia's ways of supporting China is to continuously praise China's achievements in anti epidemic with the help of the media while has clearly expressed its opposition to the United States making China the scapegoat.

Russian personages and media support and praise China's anti-epidemic achievements in the following aspects: first, refute the fallacy of "Chinese virus" spread by the United States. Second, recognize China's institutional advantages and anti-epidemic experiences. Third, praise China's rapid economic recovery in the process of anti-epidemic. Fourth, praise China's contribution to global anti-epidemic cause. Fifthly, express full confidence in China's development prospects.

Is There the Possibility to Reset China-U.S. Relations?

Yu Sui

On January 26, US President Biden had a phone conversation with Russian President Vladimir Putin and reached an agreement on extending the New START treaty, expiring on February 5, 2021, to February 5, 2026 without additional conditions. It has also been reported that bilateral relations and some global hot issues have also been discussed, including cooperation between the two countries in combating COVID-19 and economic and trade cooperation, US unilateral withdrawal of Open Skies Treaty, the comprehensive agreement on Iran's nuclear issue, and Russia to convene the summit of the five permanent members of the UN Security Council. The statement said the leaders of the two countries agreed to continue to maintain "transparent and continuous" communication. Therefore, the question that arouses people's interest is: can US-Russian relations be restarted?

The so-called relaunching of relations simply refers to whether the relations between the two countries can return to normalization and how to go to normalization. Judging from the characteristics of today's era of peace and development, the mainstream trend of economic globalization, geopolitical factors, the coronavirus epidemic and the respective complex national conditions of the United States and Russia, to restart US-Russian relations will have the following characteristics.

First, the inevitability of restart. In the 30 years since the end of the cold war, the relations between the United States and Russia have become normal and tense. Leaders of the United States and Russia understand that the deadlock in bilateral relations is not good for each other, but they should show their strength and maintain their dignity. According to the results of a recent poll conducted by Public Opinion Foundation (Russia), more than 60% of Russians believe that the Russian high-level leadership should strive to improve its relations with the United States. It can be seen that the basis of the principle that the relations between the two countries must be restarted is not meaningless. The crux lies in the political climate and timing of the restart.

Second, the limitation of restart. There are indeed profound structural contradictions between the United States and Russia. The United States wants to maintain global hegemony, while Russia wants to seek the status of a world power. In Europe, the Middle East, Africa and even Latin America, Russia is constantly colliding with each other. This mainly involves geopolitics, but has little to do with ideological factors. As the landmark achievements of the improvement of US-Russian relations, the three major arms control treaties, namely, the ABM Treaty, the INF Treaty and the New START treaty. The former two treaty have now expired. In addition, in November 2020, the United States officially withdrew from Open Skies Treaty, and Russia subsequently started the domestic process of withdrawing from Open Skies Treaty, thus greatly reducing the space for the restart of bilateral relations.

Third, the plasticity of restart. Looking back at the 30 years since the end of the cold war, Russia and the United States have cooperated in both contests and contests in cooperation, and contests have always prevailed. Although economic sanctions have caused serious difficulties to Russia, it has not been so serious as to the foundation, much less than shaken Putin's high social support. Although the United States tries its best to discredit and squeeze each other, Russia, the nuclear superpower, still has enough capital for equal dialogue with the United States. Otherwise, how can the United States call Russia a major threat?

As for Biden's relations with Russia in the next four years, it seems that we can make a few observations: first, the Color Revolution orchestrated by the United States hopes for Putin will not succeed, and the two largest nuclear powers will not have a direct war. Second, the debate over the Crimea issue is hard to stop, and the tense relations between the two countries are bound to continue. However, under the embarrassing situation of constantly exerting pressure on Russia with little effect, Biden government may have to weigh up the pros and cons, seek a more suitable escape step, and leave a decent achievement for himself. Therefore, it can not rule out the signs of easing relations with Russia in the middle and late period of his administration. Third, in the long run, there is absolutely no way out for confrontation between the United States and Russia. The coexistence of competition and cooperation is a reasonable normal, but it is difficult to maintain a balance. Competition may be at a high level, and cooperation is often at a low level.

Non-traditional Maritime Security Cooperation in East Asia: Motivations, Problems, and Prospects

Ge Jianhua

East Asia is densely populated, with active economic development, and is one of the regions with complex geopolitics and the largest change in regional pattern. The ocean problem in East Asia is particularly prominent, which restricts the sustainable development of East Asian society to some extent. For a long time, ocean issues have become an unstable factor for the countries outside the region to intervene in the ocean affairs of East Asia, which affects the relations among East Asian countries, especially maritime disputes and fishery issues, which have affected the bilateral relations between countries and regions and regional prosperity and stability.

However, in some non-traditional marine safety issues, there are not only marine disasters caused by natural factors, but also the harm caused by many activities carried out by human beings in the sea. The problems of increasingly exhausted fishery resources, maritime terrorism, safety of maritime access, marine environmental pollution, marine ecological crisis and other issues have been included in the category of non-traditional security. The solution of these problems is difficult to solve independently only by the strength of one country. It takes the cooperation and joint response of all walks of life in East Asia.

Due to historical reality and other reasons, East Asia still lacks a stable and comprehensive maritime security cooperation mechanism. Only in view of a specific threat, such as the fight against piracy and the maintenance of the safety of the navigation channel, East Asian countries have established regional network cooperation based on bilateral agreements, showing the characteristics of fragmentation, and the coordination between mechanisms has not yet been achieved. Therefore, East Asian countries should take maritime non-traditional security cooperation as the starting point, increase the willingness and consensus of cooperation, promote East Asian countries to maintain positive security awareness and positioning, and establish sustainable and effective maritime dispute settlement measures and crisis control mechanism through active strategic interaction on non-traditional maritime security level, and lay a foundation for the establishment of effective maritime security cooperation mechanism.

There are many difficult problems in the non-traditional maritime security cooperation in East Asia: 1. It is imperative to solve the problem of ocean warming caused by climate change. 2. East Asia is facing serious marine environmental pollution. 3. Joint efforts to combat maritime terrorism and solve maritime refugees, transnational maritime crimes require deep cooperation among East Asian countries. 4. Natural disasters in East Asia are various and frequent, which requires the joint operations of East Asia to cope with. 5. Dealing with the melting Arctic is an opportunity for East Asia to carry out ocean cooperation.

The path of non-traditional security cooperation in East Asia is to establish the non-traditional maritime security cooperation mechanism in East Asia: 1. Continue to deepen the China-Japanese-Korean environmental cooperation mechanism. 2. To expand cooperation in East Asia offshore wind power generation. 3. To shape the healthy construction of East Asian marine ecosystem. 4. To form Marine Urban Agglomeration Zone with East Asia coastal smart city and smart marine cooperation as the main body. 5. To form the consciousness of community with shared maritime civilization with civilization exchange as the main content. 6. To form the East Asian community with shared non-traditionanal maritime security with the maritime consultation mechanism as the main content.

The Transformation of Saudi Arabia and its Dilemmas Since Mohammed bin Salman Came to Power

Liu Zhongmin/Liu Xuejie

This paper studies Saudi Arabia's national transformation from the perspective of internal affairs and foreign affairs. In the aspect of internal affairs, it mainly analyzes Saudi Arabia's economic, social and political transformation and its dilemma. In the aspect of foreign affairs, it analyzes Saudi Arabia's global and regional diplomatic transformation and its dilemma. Finally, it summarizes the characteristics and internal contradictions of Saudi Arabia's national transformation.

China-Saudi Arabia Comprehensive Strategic Partnership

Sun Degang/Wang Yaqing

Saudi Arabia was the last Arab country to establish formal ties with China, but China-Saudi Arabia relations is one of the bilateral relations that developed the fastest. In January 2016, President Xi visited Saudi Arabia for the first time since becoming president. The leaders of the two countries agreed to upgrade the strategic friendly partnership between China and Saudi Arabia to the level of comprehensive strategic partnership, marking the formation of the overall cooperation framework between China and Saudi Arabia. This can be seen from the text of the Joint Statement on the Establishment of a Comprehensive Strategic Partnership Between China and Saudi Arabia: with the continuous advancement of multipolarization and economic globalization, China and Saudi Arabia have developed a more strategic and comprehensive relationship, and the two countries have become important partners in the world. The two sides have always viewed their relations from a strategic and long-term perspective, placing each other in an important direction of the development of their own diplomatic relations. The overall cooperative relationship between China and Saudi Arabia is characterized by frequent political visits, close economic and trade cooperation, comprehensive high-tech cooperation and fruitful security cooperation.

With the expanding of China-Saudi Arabia cooperation fields and the accumulation of achievements, the two countries have surpassed a community with a shared energy (forming interdependence in energy supply and demand) and a community with a shared interests (forming interdependence in trade), towards building a community with a shared security (forming an interdependent relationship in security) and a community with a shared destiny (forming an interdependent view of international power, common interests, sustainable development and global governance). In 2019, Saudi Arabia became China's largest trading partner in the Middle East and the Arab world for 19 consecutive years. Since 2013, China has been Saudi Arabia's largest trading partner and Saudi Arabia's number one oil importer. By 2020, the cooperation between China and Saudi Arabia in a wide range of fields such as energy, production capacity, equipment manufacturing, trade, investment, finance, science and technology, humanities, anti-terrorism, security and policy communication has been progressing smoothly, highlighting the integrity.

Compatriots on Both Sides of the Straits Should Join Hands to Promote Chinese Culture and Enhance the Consciousness of the Chinese Nation

Wang Jianmin/Ni Xia

After taking office, Tsai Ing-wen continued “Taiwan independence” political line of “Taiwan independence” separatist forces (adhering to the "Taiwan independence" position and advocating "one side, one country" or “one country on each side”), “Taiwan independence” economic line (economically far away from Chinese mainland and promoting the New Southbound Policy) and “Taiwan independence” cultural line (promoting “Taiwan independence” cultural activities and constructing the historical view of “Taiwan independence”). Therefore, the main contradiction in the development of cross-strait relations, that is, the political contradiction, is still the contradiction between reunification and independence, which is the contradiction between "Taiwan independence" and "oppose independence and promoting reunification". At the social level, it is the contradiction between integration development and anti integration development. In the field of culture, it is the contradiction and struggle between adhering to the historical view of the Chinese nation, carrying forward Chinese culture, enhancing the consciousness of the Chinese nation and cultural “Taiwan independence” of Tsai authorities, which is promoting the historical view of "Taiwan independence" and "de-sinicization".

In addition to the serious political consciousness of "Taiwan independence" separatism, a strong political camp of "Taiwan independence" has been formed. Following Lee Teng-hui and Chen Shui-bian, the current ruling Democratic Progressive Party or Tsai Ing-wen authorities have intensified their efforts. Relying on their power and resources, on the one hand, they have vigorously promoted the political separation policies of "de-sinicization", "far away from Chinese mainland", "Separate from Chinese mainland", "opposing Chinese mainland", "resisting Chinese mainland" and "hating Chinese mainland", in an attempt to "deconstruct China" and complete the institutional "Taiwan state construction"; On the other hand, it vigorously promotes the policy of cultural “Taiwan independence” from the aspects of history, culture, education and language in an attempt to complete the "cognitive construction of Taiwan nation" in psychology, spirit and culture. Therefore, cultural “Taiwan independence” constitute a set of "Taiwan independence" policy measures to promote "de-sinicization", and shape "Taiwan nationalization" from history, culture, education, ideology, symbol, symbol, logo and other aspects.

Tsai Ing-wen’s cultural "Taiwan independence" activities mainly appeared in three aspects. First, in the name of "transformation justice" and "multiculturalism", comprehensively promote cultural "Taiwan independence" activities such as "removing ancestors", "removing Confucius" and "removing mainland China", in an attempt to rationalize and legitimize "Taiwan independence" action. The second is to deconstruct the "historical view of China" and construct the "historical view of Taiwan independence". On the one hand, "Chinese history" in the history curriculum of senior high school is included in the history of East Asia in an attempt to cut off the historical relationship between Taiwan and the mainland China, and to "regionalize cross-strait relations". On the other hand, the so-called "journey of seeking relatives" launched by Tsai Ing-wen at the end of last year is to establish a new historical view and rationalize "Taiwan nationalization" separatism. The third is to separate from Chinese culture and language, and seek to build a "Taiwan culture and language system" independent of Chinese culture.

There are six ways for compatriots on both sides of the Strait to jointly promote Chinese culture and enhance the awareness of the Chinese nation: (1) compatriots on both sides of the Strait should jointly expose and resist Tsai Ing-wen’s "Taiwan cultural separation" activities. (2) The mainland China should regard cross-strait cultural exchanges and cooperation as a major cultural project in its work with Taiwan. (3) To promote and expand cross-strait cultural exchanges. (4) To carry out the cultural publishing project of inheriting and carrying forward Chinese culture. (5) To expand and set up special funds for cross-strait cultural exchanges. (6) To make full use of the Internet new media and other modern media means to widely and flexibly publicize Chinese culture and promote cross-strait cultural exchanges. In addition, compatriots on both sides of the Strait should establish a Chinese consciousness and feelings that transcend the ideological differences between the two sides, consciously carry forward Chinese culture and enhance the awareness of the Chinese nation.

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