241785633_China-Briefing_Mars-landing
picture alliance / ZUMAPRESS.com | CNSA
MERICS Briefs
MERICS China Essentials
11 min read

Mars landing + China as mediator + "Wealth Management Connect"

When China landed its rover on Mars last week, it took another great step toward achieving its ambition of becoming “a space power in all respects”. Beijing is determined to harness the scientific, economic, military and diplomatic advantages of its space exploration program, which is also a source of national pride and a major element in the power contest with the United States.

The Zhurong rover (祝融号) is part of Beijing’s first interplanetary unmanned mission to Mars, Tianwen-1 (天问一号). The plan is for the rover to explore Mars’ surface studying the planet’s topography, soil structure, magnetic fields and climate, and searching for potential underground reserves of water ice that could support future human colonization. 

It is a historic achievement for the China National Space Administration space program and comes conveniently in the year the Communist Party celebrates its 100th anniversary. The front page of the People’s Daily ran a message from president Xi Jinping, with the title printed in red, praising China’s leap into the “world's advanced ranks in the field of planetary exploration,” and stressing the mission’s significance not just for mankind, but for the country’s “self-reliance in science and technology”. 

China still lags behind the United States but has thrown substantial resources into its space program. Last year, it became the first nation to land on the far side of the moon. Having been excluded from the International Space Station mainly due to US concerns about technology theft, on April 29 China launched the core module of its own space station, which it pledged to open for all United Nations members. Russia and China have also signed an agreement to set up a joint research station on the moon.

MERICS analysis: “Deep space is among the cutting-edge science and technology fields listed as research priorities in the 14th Five-Year Plan. China’s progress on interplanetary expedition has been remarkable. Landing on Mars is a much greater technical challenge than landing on the moon. The fact that China could be about to accomplish in one mission what NASA took decades to achieve – reaching orbit, landing on the surface and then getting a rover moving – would be a symbolic victory for an increasingly nationalistic government with bold plans for technological leadership. The significance of this mission in the context of Beijing’s march towards global power status cannot be overstated.” MERICS analyst, Rebecca Arcesati

Media coverage and sources:

China offers to mediate in Israel-Palestine conflict 

The facts: As the number of casualties in the Israel-Palestine conflict kept climbing, Chinese Foreign Minister Wang Yi called for an immediate ceasefire and asked the UN Security Council (which China currently chairs) to help de-escalate the situation. He expressed support for a two-state solution and offered to mediate between Israel and Palestine, inviting both sides to come to China to “engage in direct talks” as part of a four-point proposal. Beijing used this opportunity to contrast its efforts to those of the US, who it blames for “obstructing” the UNSC in taking action in order to protect its ally, Israel. 

What to watch: China has been offering to mediate and putting forward proposals to settle the Israel-Palestine conflict for years. The first Special Envoy to the region was appointed in 2002, and the first Five-Point Proposal on the issue was put forward in 2003. However, China’s offers have yielded no results so far. Beijing has long focused on high-profile activities and rhetoric, without taking on a more active role. It remains to be seen whether China will put forward any more concrete and actionable proposals for de-escalation and the start of peace talks between the two sides. This, however, seems unlikely.

MERICS analysis: Beijing is using this crisis to burnish its responsible global power credentials, by offering an (admittedly vague) alternative path to a settlement of the dispute, in contrast to the US’s longstanding support for Israel. China is also hoping to play up its image in the region as a relatively honest broker, since it does not carry the same historical baggage as the US or European countries. Beijing, however, is neither willing nor able to take on the United States’ responsibilities at this stage, as it would involve getting involved in a complex and politically charged dispute, with which it has little to no experience.

More on the topic: “China as a conflict mediator”, short analysis and graphic by Helena Legarda  

Media coverage and sources: 

Growing pressure on China over Xinjiang

The facts: Germany’s parliament on Monday came a step closer to taking a position on China’s treatment of its Uyghur minority when the Bundestag’s human-rights committee held a public hearing about Xinjiang. While the invited experts largely agreed there was not enough evidence to classify China’s actions as genocide, MERICS China Briefing learned some committee members were pushing for a plenary vote to condemn the situation in the province. But with a recess that stretches beyond September’s national elections starting in a month, it was unclear whether they could secure enough support and parliamentary time. 

According to a legal opinion from the Bundestag’s research service, German companies could face legal liability claims should they do business with companies in Xinjiang that use forced labor. A number of recent reports have detailed the widespread use of forced labour in the region. The human-rights situation there was also a topic on the fringes of the United Nations. About 50 countries attended a virtual event about the Uyghurs' plight organized by the German, US and UK delegations. China had lobbied other UN members to stay away. 

What to watch: The Chinese government regularly objects to any public discussion about human-rights violations in Xinjiang. The Chinese Ambassador to Germany condemned the Bundestag committee’s hearing on possible genocide or crimes against humanity as "malicious denigration and political manipulation." Beijing will likely increase pressure on any governments, organizations and companies that challenge its narrative.  China wants discourse sovereignty and will tolerate no challenges to its reading of events.

MERICS analysis: China’s continued flat-out denial of systemic human-rights violations at the international level and the domestic taboo it has placed on discussing the issue, mark a turning point. By allowing no scope for debate, Beijing’s policies in the region will continue to be a source of conflict in international relations.

Media coverage and sources:    

New “Wealth Management Connect” to deepen economic integration of the Greater Bay Area

The facts: Financial regulators, including the Shenzhen sub-branch of the People’s Bank of China, have published a draft for the Wealth Management Connect program (WMC). The WMC is a pilot scheme that opens investments in wealth management products across the Greater Bay Area, including Hong Kong and Macao and six cities in Guangdong province. 

Wealth management products are uninsured financial products sold by banks in Hong Kong, Macao and on the mainland. The review period for the WMC pilot scheme draft published on May 6 ends on May 21. For the residents of the Greater Bay Area, the launch of the WMC promises more investment options in both Hong Kong and Macao. As the WMC will launch in a trial phase, the investment quotas are set at CNY 150 billion (USD 23 billion) in each direction. An individual’s investment through the program will be capped at CNY 1 million.

What to watch: The WMC will be the third cross-border investment program involving Hong Kong and mainland China after the stock and bond connect programs established in 2014 and 2017, respectively. Previous financial connects between the mainland and Hong Kong have first allowed inflow, only later outflow. In case of the WMC, Beijing has promised both from the start. The Greater Bay Area is a testing ground for opening measures for the financial sector. Discussions about an insurance connect scheme are also ongoing.

MERICS analysis: The launch of the pilot scheme would be another step towards integrating China with the international financial hub in Hong Kong and Macao. Once implemented it will lead to an increase in capital flows, a greater variety of wealth management products and more cross-border connectivity. The WMC confirms the appetite of Chinese regulators for more, although cautious, capital-account opening. 

Media coverage and sources:    

METRIX

15%

About fifteen percent of China’s population – more than 218 million people - have a college degree, according to the latest Chinese census data. Based on the OECD average of 39 percent in 2019, China is still behind most developed countries. But it is laudable achievement considering the country had fewer than 3.5 million graduates and undergraduates in 2 decades ago. The challenge for China now is to find jobs for its college graduates as the economy is still mostly driven by blue-collar labor. (Source: The New York Times)

Review: The War on the Uyghurs, by Sean R. Roberts

China’s treatment of ethnic minority groups in Xinjiang has strained international relations. The United States, Canada, the EU and the United Kingdom have collectively sanctioned Beijing for human rights abuses and lawmakers in some countries have declared China’s actions as genocide. Human rights organizations estimate that a million Uyghurs and predominantly Muslim ethnic minorities have been arbitrarily detained and put in mass internment camps in China. Millions more are said to be subjected to constant surveillance.

Against this backdrop, Sean R. Roberts’ book is important and timely. Through in-depth interviews with former detainees, and through critical analysis of Uyghur language sources and events labelled as extremism by the Chinese government, Roberts provides a compelling account of how China has weaponized the narrative of the Global War on Terrorism (GWOT) to justify its Xinjiang policies.

A global military campaign started by the United States post 9/11, the GWOT was intended to target armed Muslim fundamentalists and extremist groups. But vague definitions of “terrorism” and “terrorist” have allowed China room for its own interpretation, according to which Uyghurs and other Muslim minorities in Xinjiang are labeled a security threat to society and the measures taken against them are critical counter-terrorism operations.  

Roberts, an anthropologist who has been studying Uyghurs for over 30 years, argues - with evidence - that the claimed terrorist threat in Xinjiang does not exist – that it is a guise used by Beijing to justifiy its measures in the region. He details chronologically all the periods of tension between Uyghurs and the ruling regime from the Qing dynasty to the current date.  In so doing, the book provides clarity and context on one of the biggest human rights issues challenging global governance today.

Reviewed by Valarie Tan, MERICS analyst

MERICS China Digest

MERICS’ Top 3:

International relations:

Politics, society and media:

Economy, finance and technology:

Related content about