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Home World News

China Xi warned of Taiwan interference, no quick invasion expected: analysts

INBV News by INBV News
October 18, 2022
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China Xi warned of Taiwan interference, no quick invasion expected: analysts
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China is very concerned about its susceptibility to external influences, says professor

China will proceed to work toward becoming more self-reliant, but don’t expect President Xi Jinping to maneuver on Taiwan by force, analysts said.

Their comments follow Xi’s speech on the opening of the Chinese communist party’s national congress on Sunday. 

There have been little surprises in Xi’s nearly two-hour speech where he outlined his vision for the country for the subsequent five years, analysts said. Xi is widely expected to cement his leadership for an unprecedented third term throughout the week-long meeting.

There was, nevertheless, a key standout in Xi’s speech, said Dylan Loh, a professor in foreign policy and China expert at Singapore’s Nanyang Technological University. Unlike previous speeches, Xi made clear China needed to brace itself for growing external challenges, Loh said.

Moreover, the Chinese leader’s call for the party to “construct a socialist modern power by 2049” indicates “his determination to withstand external pressures and steer China on the party’s own course,” said political risk consultancy, Eurasia Group.

Self-reliance

The importance of self-reliance was reinforced after Xi re-articulated the so-called “dual circulation” policy, Eswar Prasad, professor of international trade and economics at Cornell University told CNBC’s “Squawk Box Asia” on Monday. 

The dual circulation strategy first emerged in 2020 when a Chinese Politburo meeting called for more give attention to domestic markets, or “internal circulation” to support China’s growth. The strategy involves placing less reliance on export-based or trade-related growth without abandoning it altogether.

In a virtually two-hour speech, Chinese President Xi Jinping outlined his vision for the country for the subsequent five years. The Chinese leader is widely expected to cement his leadership for an unprecedented third term throughout the week-long meeting.

Lintao Zhang | Getty Images News

“Actually, Chinese leaders have been taking very careful note of what has been happening within the Ukraine war and what type of chokehold the west has been in a position to placed on Russia and in fact, there’s a way of great power competition between the U.S. and China as well,” Prasad said. 

“So this notion of self-reliance, especially within the context of technology … attempting to change into less depending on the remaining of the world, either for export markets or for technology or imports of any sort. That’s clearly going to be a key pillar.”

Xi Jinping has made very clear what his intentions are: he wants a personal sector that’s controllable, that’s manageable.

Eswar Prasad

Professor of International Trade & Economics, Cornell University

To get there, Prasad said Beijing’s control of China’s private sector would ramp up as a substitute of heading toward the opposite end of the spectrum, that’s, to permit for more market-oriented reforms.

He said Xi’s speech, consistent with Beijing’s comments in recent months, suggested the federal government viewed a more state-dominated economy because the pathway to stability.

“Xi Jinping has made very clear what his intentions are: he wants a personal sector that’s controllable, that’s manageable.”

That strategy is well underway given Beijing’s intervention previously with China’s educational and property sectors.

China probably isn't eager to start something to reunify with Taiwan by force: Ex-Singapore diplomat

As such, there would likely be a reshuffle in Xi’s cabinet by the top of this week’s meeting, including possible changes on the People’s Bank of China, along with an expected alternative for Premier Li Keqiang who’s on account of retire in March, Prasad said. 

Nevertheless it would not matter who the brand new premier or cabinet members are as Xi has made it clear he can be pulling all of the strings, in response to Prasad. 

China-Taiwan tensions

Other observers comparable to Bilahari Kausikan, former everlasting secretary at Singapore’s Ministry of Foreign Affairs, said Xi isn’t be keen to take Taiwan by force, although he said in his speech that China “won’t ever promise to surrender the usage of force.”

China sees self-ruled Taiwan as a part of its territory and tensions between the 2 were inflamed recently when U.S. House Speaker Nancy Pelosi’s visited the island in August despite warnings from Beijing.

“I actually don’t think that the Chinese are very wanting to start something to reunify Taiwan by force … because in the event you start that you need to win,” Kausikan said.

“I do not think any Chinese leader can survive a bungled attempt on Taiwan as Putin bungled Ukraine. And I don’t think they’ve the aptitude yet.”

Read more about China from CNBC Pro

Lyle J. Morris, a senior fellow for foreign policy and national security at Asia Society Policy Institute’s Center for China Evaluation, agreed.

“Xi isn’t signaling to the international community that he desires to invade Taiwan or that he’s running out of patience for political reconciliation,” he said declaring that peaceful reunification was still the operative phrase Xi used.

“He did reference external forces very early on within the speech, so clearly the factor of the US is front and center in his mind.

Sticking to China’s zero-Covid policy

Asked if he was surprised Xi stayed firm on China’s zero-Covid policies to the despair of companies which might be hoping the country will reopen, Bilahari said Xi was driven by party and political logic that are secondary to economic logic.

“To abruptly abandon it could be to confess that it was a mistake … it can be unwound regularly over the subsequent yr or two without ever admitting that it has failed,” Bilahari told CNBC.

Loh from Singapore’s NTU said that sticking to zero-Covid policies had other practicalities. The Chinese medical infrastructure must be reformed before it may possibly deal with the next variety of infections.

“The simplest, quickest and in some ways, surest, method to forestall deaths from Covid from spiralling uncontrolled is the zero-Covid policy. I do expect some tweaks on the implementation level but probably nothing beyond,” he said.

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