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Victory for incumbent President Tsai Ing-wen is all but certain, shaping Taipei’s future relationship with Beijing.
By James Palmer | January 8, 2020, 4:01 PM
Taiwan's incumbent President Tsai Ing-wen speaks during a rally on Jan. 8 in Taoyuan, Taiwan, ahead of Saturday's presidential election. Carl Court/Getty Images
Welcome to Foreign Policy’s weekly China Brief. The highlights this week: What to expect ahead of Taiwan’s general elections this weekend, China replaces its top representative in Hong Kong, and why capital is drying up for Chinese start-ups.
In large part, that’s because of China’s response to the democracy movement in Hong Kong. Tsai’s DPP is ardently anti-Beijing. The main opposition party, Kuomintang (KMT), is increasingly associated with pro-China policy—despite its origins on the mainland as the Chinese Communist Party’s foe. The mainland attitude toward Hong Kong has hurt the case for reconciliation between China and Taiwan: The DPP’s most recent advertisement plays to this, explicitly linking .. https://www.taiwannews.com.tw/en/news/3852486 .. Taiwan’s cause with Hong Kong’s.
Failed policy. Tsai’s likely victory will deal another blow to the Chinese Communist Party’s long-term strategy of “one country, two systems”: the idea that Taiwan could nominally accept Beijing’s authority while retaining its own laws for a period, as with Hong Kong and Macao. Beijing’s soft sell .. https://foreignpolicy.com/2019/06/21/one-country-two-systems-lots-of-problems/ .. has failed, but the mainland obsession with Taiwan’s so-called return to China won’t go away. Military options may even start to look more palatable.
Still Tehran’s pal? China has sent messages of reassurance to Iran following the U.S. killing of Iranian military commander Qassem Suleimani last Friday. Despite Beijing’s long-term connections with Tehran, it could stand to benefit .. https://supchina.com/2020/01/06/how-china-benefits-from-trumps-iran-confrontation/ .. from a wider confrontation that draws the United States further into the Middle East. In private, Chinese analysts have described the Iraq War as buying China a decade. An Iranian conflict could give Beijing even more strategic space.
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Tech and Business
Tech’s long winter. Capital is drying .. https://www.ft.com/content/b74394c8-2d57-11ea-a126-99756bd8f45e .. up for Chinese start-ups, and the end of 2019 came with a painful reckoning: 336 startups failed at a cost of about $2.5 billion in venture capital, the Financial Times reports. Half of China’s biggest start-up failures came last year alone. The failures are a result of U.S.-China decoupling, the general economic slowdown, and political pressures on banks that have made lenders more cautious. Many of the casualties—such as Tuandaiwang, which collapsed in March—were in peer-to-peer lending. (Some were little more than Ponzi schemes.)
Major partners. China’s modern economic relationship with Iran goes back to 1974, when China began to look seriously for petroleum imports outside its borders. Those ties survived the Iranian revolution, despite the mullahs’ persecution of Iranian communists. Iran is a valued partner in China’s Belt and Road Initiative, while China has been Iran’s biggest trading partner in recent years—a relationship that might be strained by U.S. sanctions .. https://en.radiofarda.com/a/large-decline-in-iranian-exports-to-china-tilts-trade-balance-/30235935.html .. on Iran’s oil exports.
Imports and Exports Since 2010, In Billions USD China’s Trade With IranImports and exports since 2010, in billions USD
Note: Rounded to the nearest million. Source: trademap.org
This 2014 article, brought to our attention by the political scientist Sam Crane, criticizes the myths of Confucianism dominating China’s past, or the idea that the 20th century was a violent anomaly. William Rowe, a China historian, points to cultures of exorcism, popular violence, and mob anger that simmered underneath a self-promoting elite during the Ming and Qing dynasties (from the 14th to the 20th century). The Qing state oscillated between colonial violence to enforce its borders and a frustrating series of civil disputes at home—an image that has echoes today.
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That’s it for this week.
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James Palmer is a senior editor at Foreign Policy. Twitter: @BeijingPalmer