Here at our CUSEF blog, we share news, updates and stories about China and the United States. We provide more than a cursory glimpse of what’s going on between the two powers - here, we offer an in-depth look into their current state of affairs.

CUSEF Express

CUSEF Express - Aug 11, 2022

Daily highlights of developments that affect China and the U.S.
Daily highlights of developments that affect China and the U.S.

China ends drills over Taiwan

  • China Wednesday announced (Zh) the conclusion of its military exercises over Taiwan and said it would shift to regular patrols. The planned downgrade of military operations signals one step forward to the “peaceful reunification” it envisions in its latest white paper.

  • However, the post-reunification picture Beijing paints could be different from before. In yesterday’s document, China did not include the promise in the previous two white papers that it “will not send troops or administrative personnel to be stationed in Taiwan.” This promise was the key element that differentiated the “one country, two systems” model proposed to Taiwan from those running in Hong Kong and Macao.

  • When asked about Beijing’s pressure on Taipei, the U.S. military insisted that it would continue operating in the region. “We’ll […] continue to fly, to sail and operate wherever international law allows us to do so, and that includes in the Taiwan Strait,” said Colin H. Kahl, U.S. under secretary of defense for policy.

  • A war game carried out at the Center for Strategic and International Studies (CSIS) showed that the U.S. and Taipei could successfully conduct a defense of Taiwan under most assumptions. But the victory would be traded off by a shattered economy in Taiwan, a heavily battered U.S. army, and consequences for the U.S.’s global power. In the recent crisis, the U.S. dispatched only one aircraft carrier strike group to the waters near Taiwan, compared with two carrier groups in the 1996 crisis.

Wang, Park agree on THAAD missile system

  • Chinese Foreign Minister Wang Yi met with (Zh/En) his South Korean counterpart Park Jin in Qingdao on Tuesday. It was Park’s first trip to China as Foreign Minister and was the first visit to China by such a high-level delegation under President Yoon Suk-yeol.

  • The security of the Korean Peninsular, especially the Terminal High Altitude Area Defense (THAAD) system deployed by the U.S., was at the center of their five-hour talks. China’s Foreign Ministry said (Zh/En) that the two sides had temporarily “properly handled the THAAD issue” based on “mutual understanding” (基于双方的谅解,中韩双方阶段性稳妥处理了“萨德”问题).

  • The Chinese Foreign Ministry also highlighted the “three no’s and one restriction” (“三不一限”) approach previously declared by the ROK government — no additional THAAD deployment in the ROK, no participation in a U.S.-led missile defense network, no involvement in a trilateral military alliance with the U.S. and Japan, and restriction in the use of the THAAD system deployed.

China responds to CHIPS and Science Act

  • The Chinese Foreign Ministry accused (Zh/En) the U.S. of “economic coercion” (经济胁迫) when commenting on the CHIPS and Science Act. Two Chinese associations — the China Council for the Promotion of International Trade and the China Chamber of International Commerce — condemned (Zh) the U.S. for hindering technological innovation.

Fed maintains rate hike path despite softening inflation

  • The U.S. consumer-price index (CPI) rose 8.5% in July from a year ago, down from the forty-year-high 9.1% in June. However, Federal Reserve officials said the eased inflation would not affect the rate hike path aiming to control the increasing prices.

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