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THIS WEEK:

U.S.-China tensions at APEC 2024, PLA Navy flexes muscles in Hong Kong, videos boost agrotechnology, overtures to overseas Chinese, and Beijing updates dual-use export control list

1. U.S.-China Tensions at APEC 2024

What Happened: The growing economic rift between the U.S. and China was evident at APEC Peru 2024 as Xi Jinping criticized trade barriers and economic fragmentation and called for efforts to stabilize supply chains to sustain global commerce.

Rivalry in Action: Xi also unveiled China’s $3.6 billion Chancay port project in Peru, which Lima sees as an economic lifeline but strains its relationship with Washington. U.S. officials questioned the project’s intentions, viewing it as a strategic effort to bolster Beijing’s influence.

In the Crossfire: APEC nations are grappling with the pressures of U.S.-China competition. New Zealand’s leadership warned of a shift from rules-based systems to power-driven dynamics, while Canada stressed the importance of fair-trade policies. Southeast Asian nations are weighing the economic advantages of Chinese investments against sovereignty concerns.

Why It Matters: The U.S.-China rivalry is reshaping global trade, with APEC nations at its center. The choices APEC nations make — to align with China, the U.S., or strike a precarious balance — will shape trade routes, alliances, and global economic stability.
 
By Lizzi C. Lee, Fellow on Chinese Economy, Center for China Analysis

Learn More: ASPI experts collaborated with Asian co-authors to analyze what the region wants and expects from the next U.S. administration in “What’s at Stake for Asia in the 2024 U.S. Election.”

2. PLA Navy Visits Hong Kong

What Happened: A PLA Navy fleet visit to Hong Kong showcased Beijing’s upgraded defenses and its resolve to safeguard national sovereignty and security.

On Trial: The visit was announced following the conclusion of Hong Kong’s largest national security trial, where 45 opposition figures were sentenced to jail under the 2020 National Security Law for conspiracy to commit subversion. 

Tightening the Grip: The PLA has increased its presence in Hong Kong in recent years. In 2017, the aircraft carrier Liaoning toured the island, and the PLA stationed two additional naval vessels, the Suqian and the Jingmen, in Hong Kong waters in 2021 to bolster its maritime defenses. These displays serve as both symbolic and strategic moves to reinforce Beijing’s authority in the region.

Why It Matters: The PLA Navy’s visit underscores China’s commitment to deterring pro-independence movements and sends a clear signal to foreign governments about its firm stance on Hong Kong’s sovereignty. 

By Jie Gao, Research Associate, Center for China Analysis

Learn More: Watch this virtual conversation hosted by Asia Society Seattle on the future of Hong Kong and the “one country, two systems” principle.

3. Videos Boost Agrotechnology

What Happened: Chinese agricultural technicians are using short-form video platforms to create educational content for farmers hoping to maximize crop yields.

The Content: The videos last 1–3 minutes and cover topics such as pest and disease prevention, wheat and rice cultivation, and high-yield techniques. Farmers across China can search the platforms for the information they need and access it on demand.

The Numbers: Around 27.8 million videos about agricultural practices were posted on Douyin in 2023, generating 120.6 billion views. Noting this trend, the China Rural Distance Education Network began working with Douyin and has released more than 40,000 videos promoting advanced agricultural technology on the platform. 

Why It Matters: As China’s agricultural sector battles climate change, sharing information and best practices can help farmers identify innovative solutions and new technology to increase crop yields.
 
By Taylah Bland, Fellow on Climate and the Environment, Center for China Analysis
 
Learn More: Read about how Beijing is strengthening food security through increased agricultural production in ASPI Australia’s report, “Understanding China’s Food Priorities for 2024.”

4. Overtures to Overseas Chinese

What Happened: Addressing a meeting of the China Overseas Friendship Association (COFA) on November 18, Wang Huning, a top political advisor to the Chinese leadership, emphasized that COFA should unite Chinese people all over the world to promote Chinese-style modernization.

Major Force: Wang also highlighted the importance of integrating Hong Kong, Macao, and Taiwan into China’s broader development strategy while combating Taiwan separatism. 

Vast Network: Established in 1997, COFA is a “nonprofit organization” led by the head of the Central United Front Work Department. Its members connect with the more than 65 million overseas Chinese, including over 40 million people residing in 150 countries, to foster political and economic networks.

Why It Matters: As many Chinese organizations face increasing scrutiny in the West, COFA is becoming more active in Hong Kong, Macao, Taiwan, and countries participating in the Belt and Road Initiative.

By Lobsang Tsering, Senior Research Associate, Center for China Analysis

Learn More: Watch “China’s Crisis of Faith and the Struggle Over Moral Authority,” a conversation about Beijing’s attempts to control religious expression and impose ideological conformity, moderated by CCA Fellow G.A. Donovan.

5. China Introduces Comprehensive Dual-Use Export Control List

What Happened: The Ministry of Commerce unveiled a comprehensive list of dual-use items subject to export controls under a 2020 law that seeks to modernize China’s export control regime.

The Benefits: The list consolidates previously fragmented catalogs to reflect international best practices and introduces standardized categorization rules that allow exporters to more accurately confirm whether their products fall under export controls.

No Change in Scope: The range of controlled dual-use items remains unchanged, encompassing traditional nonproliferation areas such as nuclear, chemical, and missile technologies. It also includes components viewed as critical to the tech supply chain, from rare earth minerals essential for semiconductors to advanced encryption devices.

Why It Matters: The modernized export control regime enhances China’s ability to engage in tit-for-tat retaliation should the United States hit it with more export bans.

By Qiheng Chen, Affiliated Researcher on Economy and Technology, Center for China Analysis

Learn More: Qiheng wrote about Beijing’s efforts to modernize its regulatory regime for technology in “China’s Emerging Approach to Regulating General-Purpose Artificial Intelligence.”