Briefly - China and the Changing World Order no.5
German increasing investment in China, Xi spends $50bn in Africa, and Singapore trains with the PLA
Hello and welcome back to What China Wants.
In our latest edition of Adarga’s Briefly: China in the Changing World Order we look at three new stories.
Defence | China-Singapore Military Exercises
Singapore, a key UK ally and a strong partner to the US (which is such a close partner that part of the island state’s helicopter force is permanently based in Idaho), is balancing its military relationships by conducting joint training with China. This is not the only Western ally to be doing so. But how much of an issue is this? I argue it isn’t – what would be more of a blow would be if Singapore started buying advanced Chinese weaponry that ran on Chinese digital infrastructure, as other US allies are doing (such as Pakistan). Still, the fact that countries like Singapore feel the need to keep a balance between the sides is an indication of how the US is no longer the hegemon it once was.
Economics | German Investment in China
Germany is one of China’s leading economic partners, and swathes of the German economy is dependent on the PRC. Volkswagan, for example, receives about half of its profits from China. So it is perhaps no surprise that despite all the increasing anxiety of investing in China, Germany is bucking the trend and doubling down on its commitment there. This increased exposure is going to make more difficult the EU’s efforts to push back on Chinese competition. Although many in Europe lauded recent tariffs on Chinese Electric Vehicles, the more Germany invests in China the more other EU countries will fear for their defences against Chinese economic competition. This is likely to be a significant bone of European contention in the years to come.
Politics | China-Africa Summit
China is already a major player in Africa. The Forum on China-Africa Cooperation summit, a main pillar of Beijing’s engagement on the continent, was very well attended by African leaders and by Xi Jinping himself. The Chinese President announced USD 50bn in funding across ten sectors, from defence to political education and green technology. For all the West’s bluster about China exploiting Africa, the fact that this event was so well attended is indicative of the real feelings that many leaders there have for the PRC. In addition, the fact that there is no Western alternative to the Forum shows to many where Africa lies on the collective Western priority list.
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I’ll be back next week.
Sam