| 29 June 2023
China is set to expand President Xi Jinping's powers with a new law that aims to strengthen Beijing's influence and protect its interests globally. The law, which will come into effect on 1 July, threatens to punish entities that act in ways deemed "detrimental" to China's interests. While it does not provide specific guidelines on the boundaries that should not be crossed, experts suggest that it underscores China's increasingly assertive diplomacy. The enforcement of this law remains uncertain, but it signifies China's more aggressive foreign policy and its resolve to counter the influence of the United States.
The new law has been viewed by the state media outlet, The Global Times, as a crucial step in enhancing China's legal tools against Western dominance. Dr Chong Ja-Ian, a non-resident scholar at Carnegie China, interprets it as a signal of Beijing's intention to actively pursue its interests, resorting to coercion and pressure if necessary, while still presenting the allure of cooperation and economic gains.
China's leaders face an inherent tension between economic development and safeguarding national security and interests. Manoj Kewalramani, head of the China Studies Programme at the Takshashila Institution, explains that this push and pull is likely to persist. The strained relationship between Beijing and Washington, characterized by tit-for-tat trade sanctions, exemplifies the challenges in the China-US dynamic. In response to growing trade and technology restrictions from the US, Chinese authorities have taken actions against Western firms, including raiding and closing local offices of several US-based consulting firms and banning products from US memory chip giant Micron.
Dr Chong suggests that the new foreign relations law may lead to increased international compliance with China's interests, but it could also provoke resistance from other governments. He advises foreign businesses to reconsider their exposure to the Chinese market and reassess their public positions, including political ones. The legislation provides a stronger legal basis for the ongoing raids and investigations of foreign firms. However, it is important to note that the law does not guarantee that China will take these more forceful actions.
Recent visits to China by top US business executives, such as Elon Musk and JPMorgan's Jamie Dimon, highlight the significance of China to the US economy. This suggests that despite the new law, economic interdependence and the pursuit of business opportunities could still play a role in influencing China's behavior.
One notable aspect of the law is how it defines China's foreign relations in the context of ideology. The law states that China conducts foreign relations to uphold its system of socialism with Chinese characteristics, safeguard its sovereignty, unification, and territorial integrity, and promote its economic and social development. It further emphasizes that China conducts foreign relations under the guidance of political ideologies such as those of Xi Jinping, Mao Zedong, Deng Xiaoping, and Marxism-Leninism. This provision solidifies the ruling Communist Party's control over foreign policy and reflects Xi's tightening grip on power.
According to China's top diplomat, Wang Yi, the law is an essential measure to strengthen the Communist Party Central Committee's centralized and unified leadership over foreign affairs. However, critics argue that it could stifle discussion and dissent on foreign policy issues. The true implications of the law will only become apparent over time, as they depend on the interpretation of the legislation by the courts and the severity of the punitive measures imposed.
In conclusion, China's new law represents a significant expansion of President Xi Jinping's powers, granting him greater control over foreign policy and asserting Beijing's interests on the global stage. While its enforcement and specific impact remain uncertain, it signals a more assertive and aggressive foreign policy approach from China, particularly in response to perceived Western hegemony.
As China continues to navigate the delicate balance between economic development and national security, the consequences of this law will unfold gradually and shape the future of China's engagement with the international community.
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