Next China: Xi’s Russia Problem

Bloomberg NewsFebruary 24, 2022, 11:36 PM EST

There are no limits to the friendship between China and Russia.

That declaration made in a joint statement between the president of China and the president of Russia could hurt China's image as it tries to balance its support for Moscow against the criticism of the U.S.

The Chinese government called for restraint as Russian forces attacked cities. China, no stranger to Western sanctions, said the penalties against Russia, which target Putin's inner circle and the builder of theNord Stream 2 gas line, were counter productive and suggested the U.S. support for NATO had left Putin.

While Moscow and Beijing have had a relationship of convenience, their ties have deepened in recent years as China's relations with the U.S. hit a nadir over human rights issues and a trade war. China could see the U.S. response to the Ukraine crisis as a way to retaliate against Taiwan.

NATO has seen the U.S.-led defense alliance shift its focus to the country in recent years, and China has no love for it. China has called for its right to sovereignty and territorial integrity, but Ukraine is a friend and trading partner. Russia is an important counterbalance to the U.S., with trade jumping by one-third to a record $140 billion last year.

There is a lot at stake for China. China's economy is in a sensitive political year and any confrontation between Russia and the West adds to the risks. China, the world's top consumer of commodities, doesn't want to see oil prices go up further.

An associate professor at the National University of Singapore said that Moscow's recognition of independence for two areas of Ukraine could lead to a precedent for Western nations to recognize self-governed Taiwan.

China may have to choose a side. Bonnie Glaser is the director of the Asia program at the German Marshall Fund of the United States.

Jack’s Not Out of the Woods

It has been more than a year since the government ordered the withdrawal of the $35 billion initial public offering.

Apparently, that is not enough.

Regulators recently told the biggest state-owned banks and firms to report all their financial exposure to the company. Maybe it is just a bystander in the Chinese government's drive to rein in the private sector. There is talk of creating a negative list to navigate the complex relationships between public officials and private companies.

It is a wake-up call that regulation is not finished, said Michael Norris, an analyst with AgencyChina.

The most famous billionaire in China may have more time to work on his golf game.

Women’s Plights

The case of a mother of eight found chained up by the neck is a modern problem for China, spotlighting issues such as human trafficking, mental illness and the plight of rural women.

It took a letter signed by 100 alumni of a top university and an uproar on social media for authorities to finally investigate after a video of a woman was uploaded to the internet.

After users of the social media site Weibo posted past episodes of women being exploited, officials announced a campaign to investigate cases that violate the rights of women, children and mentally disabled people.

End of China Initiative

Under the Biden administration, U.S.-China relations may not have improved much, but the Department of Justice is ending a program that sought to weed out potential Chinese spies.

The program was criticized for targeting professors and researchers who were accused of violating grant terms.

What We’re Reading

A few other stories caught our attention.

Leading CEOs from retail, travel, finance, health care, and more will gather at the Asean Business Summit on March 16 to map out a plan for business and economies to recover and rebuild. How should Southeast Asia be positioned under a new economic and political landscape? Register here if you want to find out more.