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    Is China’s Era of High Growth Over?

    Beijing unveiled an annual economic target in line with last year’s, as it looks to refocus on strategically important sectors.With troubles brewing at home, China has set the same growth target as last year, reflecting its continuing economic challenges.Lintao Zhang/Getty ImagesChina’s real growth agenda China announced an official growth target of about 5 percent on Tuesday that’s already looking hard to pull off. The world’s second-biggest economy is facing headwinds, from a consumer slowdown to weak investor confidence and a trade war with the West.But the growth target only tells part of the story of how Beijing is rethinking economic policy.Left out of the pronouncements: a stimulus package. Investors watch the annual gathering of the National People’s Congress, the country’s rubber-stamp parliament, and a parallel meeting of China’s top policy body, for clues on the government’s priorities. Spending is set to remain at roughly last year’s level, suggesting that there’s no big-bang boost on the horizon.That’s not great news for Western brands that have ridden a surge in Chinese consumer spending to big growth in recent years. Apple reportedly has seen its Chinese iPhones sales plummet this year.The growth target matches last year’s too, when the post-lockdown economy grew 5.2 percent. (Some analysts say the real growth rate is much lower.) Global investors need to accept that slow growth is the new norm, says Yu Jie, a senior fellow on China at Chatham House, a think tank. “Beijing wants to draw a line under the past economic model which focused on infrastructure and property,” she told DealBook.Beijing’s real focus is reshaping the economy. The government knows that it faces a raft of challenges, but China’s leader, Xi Jinping, is trying to move away from debt-fueled sectors like property and move toward strategically important industries. The terms it uses are “high-quality development” and “new productive forces,” which includes electric vehicles, climate tech, life sciences, and artificial intelligence. The latest measures to achieve that: Premier Li Qiang, China’s second-highest official, said on Tuesday that the government would increase spending for science and technology research by 10 percent.More state-led investment is the priority, rather than “other kinds of more politically painful reforms,” George Magnus, a research associate at Oxford University’s China Center and a former chief economist at UBS, told DealBook.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    China Sets Economic Growth Target of About 5%

    Premier Li Qiang targets growth of about 5 percent this year but signals continued reluctance to use deficit spending for economic stimulus.China’s top leaders on Tuesday set an ambitious target for economic growth but they signaled only modest stimulus measures, not the aggressive support for China’s domestic economy that many analysts believe is necessary to halt a steep slide in the housing market and ease consumer malaise and investor wariness.Premier Li Qiang, the country’s No. 2 official after Xi Jinping, said in his report to the annual session of the legislature that the government would seek economic growth of “around 5 percent.” That is the same target that China’s leadership set for last year, when official statistics ended up showing that the country’s gross domestic product grew 5.2 percent.The country’s program for state spending showed little change. Mr. Li said that the central government’s deficit would be set at 3 percent of economic output, but that the government was ready to issue another $140 billion worth of bonds to pay for unspecified projects of national importance. The more the government borrows, the more it can spend on initiatives that could boost the economy.China had also set the deficit at 3 percent early last year, before raising it in October to 3.8 percent when the government approved $140 billion in additional bonds to pay for disaster relief and prevention measures after severe summer flooding.Conspicuously missing from the premier’s agenda for this year was a move to shore up the country’s social safety net or introduce other policies, like vouchers or coupons, that would directly address Chinese consumers’ very weak confidence and unwillingness to spend money.“There’s a lot of positive noises for the economy, but not a lot of concrete proposals for how to resolve the country’s growth difficulties,” said Neil Thomas, a fellow at the Center for China Analysis of the Asia Society.

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    China consumer confidence index
    Source: China National Bureau of StatisticsBy The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    American Firms Invested $1 Billion in Chinese Chips, Lawmakers Find

    A Congressional investigation determined that U.S. funding helped fuel the growth of a sector now viewed by Washington as a security threat.A congressional investigation has determined that five American venture capital firms invested more than $1 billion in China’s semiconductor industry since 2001, fueling the growth of a sector that the United States government now regards as a national security threat.Funds supplied by the five firms — GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital and Walden International — went to more than 150 Chinese companies, according to the report, which was released Thursday by both Republicans and Democrats on the House Select Committee on the Chinese Communist Party.The investments included roughly $180 million that went to Chinese firms that the committee said directly or indirectly support Beijing’s military. That includes companies that the U.S. government has said provide chips for China’s military research, equipment and weapons, such as Semiconductor Manufacturing International Corporation, or SMIC, China’s largest chipmaker.The report by the House committee focuses on investments made before the Biden administration imposed sweeping restrictions aimed at cutting off China’s access to American financing. It does not allege any illegality.Last August, the Biden administration banned U.S. venture capital and private equity firms from investing in Chinese quantum computing, artificial intelligence and advanced semiconductors. It has also imposed worldwide limits on sales of advanced chips and chip-making machines to China, arguing that these technologies could help advance the capabilities of the Chinese military and spy agencies.Since it was established a year ago, the committee has called for raising tariffs on China, targeted Ford Motor and others for doing business with Chinese companies, and spotlighted forced labor concerns involving Chinese shopping sites.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Real Estate Giant China Evergrande Will Be Liquidated

    After multiple delays and even a few faint glimmers of hope, a Hong Kong court has sounded the death knell for what was once China’s biggest real estate firm.Months after China Evergrande ran out of cash and defaulted in 2021, investors around the world scooped up the property developer’s discounted I.O.U.’s, betting that the Chinese government would eventually step in to bail it out.On Monday it became clear just how misguided that bet was. After two years in limbo, Evergrande was ordered by a court in Hong Kong to liquidate, a move that will set off a race by lawyers to find and grab anything belonging to Evergrande that can be sold.The order is also likely to send shock waves through financial markets that are already skittish about China’s economy.Evergrande is a real estate developer with more than $300 billion in debt, sitting in the middle of the world’s biggest housing crisis. There isn’t much left in its sprawling empire that is worth much. And even those assets may be off limits because property in China has become intertwined with politics.Evergrande, as well as other developers, overbuilt and over promised, taking money for apartments that had not been built and leaving hundreds of thousands of home buyers waiting on their apartments. Now that dozens of these companies have defaulted, the government is frantically trying to force them to finish the apartments, putting everyone in a difficult position because contractors and builders have not been paid for years.What happens next in the unwinding of Evergrande will test the belief long held by foreign investors that China will treat them fairly. The outcome could help spur or further tamp down the flow of money into Chinese markets when global confidence in China is already shaken.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

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    Nikki Haley Renews Call for TikTok Ban After Bin Laden Letter Circulates

    The presidential candidate has argued that social media platforms should better police certain users and content, prompting backlash from some Republican rivals.Nikki Haley ratcheted up her calls this week for the U.S. government to ban TikTok, the Chinese-owned social media platform, after some users, weighing in on the war between Israel and Hamas, promoted “Letter to America,” a text written by Osama bin Laden after the Sept. 11 terrorist attacks.Ms. Haley, a Republican presidential contender and former U.S. ambassador to the United Nations under President Donald J. Trump, argued that the document was another example of foreign adversaries using social media to spread anti-American propaganda to young people.“That’s why you have to ban TikTok,” Ms. Haley said at a town hall in Newton, Iowa, on Friday. “Nepal just came out yesterday, and they’re banning it because they see what’s happening in their country. India did it. Why are we the last ones to do it?”In bin Laden’s letter, the mastermind of the attacks on the World Trade Center and the Pentagon, which killed nearly 3,000 people, defended the terrorists’ actions. He wrote that American taxpayers had been complicit in harming Muslims in the Middle East, including destroying Palestinian homes. He also said that Americans were “servants” to Jews, who controlled the country’s economy and media. Bin Laden was killed by U.S. military and intelligence operatives in 2011.In a statement on X, TikTok responded to Ms. Haley’s calls for a ban — which she also posted on social media Thursday — by saying that the circulation of bin Laden’s letter violated the platform’s rules banning support for terrorism and that it was policing related content accordingly.“We are proactively and aggressively removing this content and investigating how it got onto our platform,” the company said. “The number of videos on TikTok is small and reports of it trending on our platform are inaccurate.”A spokesman for the company told The New York Times on Thursday that most of the views of the videos came after news organizations wrote about them, and that the letter had also “appeared across multiple platforms and the media.”Ms. Haley’s crusade against TikTok has become a flashpoint in the Republican presidential race, coinciding with her rise in the polls. Mr. Trump, her former boss, continues to be the overwhelming front-runner, but Ms. Haley, a former South Carolina governor, is trying to overtake Gov. Ron DeSantis of Florida for second place.At the Republican debate last week in Miami, she clashed with Vivek Ramaswamy, the biotech entrepreneur, over calls for a TikTok ban. He mentioned that her daughter had an account on the platform, drawing Ms. Haley’s ire and leading her to call Mr. Ramaswamy “scum.”Ms. Haley has knocked Mr. Ramaswamy for joining TikTok after he had previously referred to the app as “digital fentanyl.” In the days following the debate, she has contended that social media platforms should better police certain users and content, prompting criticism from some of her rivals. Her call on Tuesday for social media companies to verify the identity of users and to bar people from posting anonymously was panned by Mr. DeSantis, Mr. Ramaswamy and others as unconstitutional and a threat to free speech.“You know who were anonymous writers back in the day?” Mr. DeSantis wrote on X. “Alexander Hamilton, John Jay, and James Madison when they wrote the Federalist Papers.”Ms. Haley told CNBC a day later that her comments were directed at foreign adversaries, not Americans.At town halls for her campaign in Iowa on Thursday and Friday, Ms. Haley continued to press on TikTok and brought up the letter by bin Laden.“Now you have members of our younger generation, they’re saying now they understand why he did it. That’s disgusting,” she said at a town hall in Newton on Friday. “That’s not America doing that. That’s China doing that.”Ms. Haley has assailed what she calls “foreign infiltration” into American society by hostile governments. She has particularly focused on propaganda and disinformation, which she says is being distributed by China, Russia and Iran to young Americans through TikTok and other social media platforms. She has also argued that young Americans are more sympathetic to the Palestinian cause because of “pro-Hamas videos on TikTok.”She has also hammered the rise of Chinese investment in communities across the country, particularly the acquisition of farmland and agricultural technology — an acute anxiety in rural states like Iowa.Linda Schroeder, of Dubuque, said Ms. Haley’s focus on the issue is what put the candidate over the top as her choice.“Why are we allowing it? For them to be here,” Ms. Schroeder said after hearing from Ms. Haley. “I grew up with 14 other siblings on a farm, and we still have the farm, and we’ll keep it.” More

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    Modi’s Visits Abroad Help to Build His Image in India

    For an audience in India, the prime minister is linking his diplomatic reception abroad, and himself, to the country’s growing importance on the world stage.His grip on the levers of national power secure, his hold on India’s domestic imagination cemented, Prime Minister Narendra Modi has increasingly turned to advancing himself on a new horizon: the global stage.With a packed diplomatic calendar that includes India’s hosting of the Group of 20 summit later this year, Mr. Modi is building an image going into his re-election campaign as a leader who can win respect and investment for his vast nation. The state visit accorded to Mr. Modi in Washington, which ends on Friday, is perhaps the biggest prize yet in that quest.“It’s not just about a fairer bargain abroad,” said Ashok Malik, a former government adviser who is the India chair at the Asia Group, a consulting firm. “It’s also that ‘my investments in key foreign policy relations are actually helping to build the Indian economy and therefore create opportunities for Indians at home and strengthen India overall.’”At home, Mr. Modi’s Hindu nationalist party has continued to sideline institutions that were once important checks on the government. It has persisted in its vilification of the country’s 200 million Muslims, even as Mr. Modi used an exceedingly rare news conference in Washington to claim that there was no discrimination against anyone in India.But abroad, world leaders eager to court an ascendant India have offered little pushback. And often, they have given Mr. Modi invaluable fodder for an information campaign that shapes perceptions of him among many Indian voters who are ecstatic to see their country’s importance affirmed.Eid-al Fitr prayers in Chennai, India, in April. Mr. Modi used a news conference in Washington to claim that there was no discrimination against anyone in India, including the country’s huge Muslim minority.Idrees Mohammed/EPA, via ShutterstockWhen Mr. Modi traveled to Australia last month, Prime Minister Anthony Albanese referred to him as “the boss” in front of an arena in Sydney packed with about 20,000 people. Mr. Modi then returned to New Delhi to a large crowd gathered for his welcome at 6 in the morning, telling supporters that the grand welcome for him abroad was about India, not him.On Friday, as Mr. Modi was wrapping up his meetings in the United States before arriving in Egypt for another grand greeting, his political party and the large sections of the broadcast media friendly to him reveled in the reception he had gotten from President Biden and other American leaders.The red carpet in Washington played perfectly into one of Mr. Modi’s talents: He can build a media campaign out of virtually anything, projecting himself as the only leader who can expand India’s economy and usher a nation coming into its own to new heights.While opposition leaders back home were holding their largest gathering yet, hoping to find a formula for uniting to challenge the prime minister in elections early next year, Mr. Modi was reaching for the world.Social media was flooded with montage videos, set to regal background music, of Mr. Modi making a grand entrance into the House of Representatives for his address to a joint session of Congress. The speech, after which several lawmakers sought Mr. Modi’s autograph, made him one of only a very small number of world leaders to have addressed that body twice.Another video online kept count of the number of times Mr. Modi received applause or standing ovations during his speech. A third cut to dramatic images of Mr. Modi contrasting him with the dynastic leaders who came before him, advancing a constant narrative that he represents a subversion of the old elite that long ruled India.“History tells us that powerful people come from powerful places. History was wrong,” a deep voice intones in the video. “Powerful people make places powerful.”Congress offers a standing ovation for Mr. Modi’s speech on Capitol Hill on Thursday.T.J. Kirkpatrick for The New York TimesMr. Modi’s next major opportunity to appear as a global statesman will come in September when India welcomes the Group of 20 leaders, a summit meeting he has framed to his support base as his bringing the world to India.His government has turned promotion for the meeting into a roadshow, hosting hundreds of G20 events, so many that foreign diplomats in New Delhi quietly complain about travel fatigue. Cities and towns across India are decked out with billboards bearing the G20 logo — which cleverly incorporates the lotus, a symbol both of India and his Bharatiya Janata Party — and pictures of Mr. Modi.In promoting the G20 presidency, Mr. Modi has taken to frequently describing India, the world’s most populous nation, as the “mother of democracy.” Abroad, however, he has pursued a transactional brand of diplomacy built not on practicing democratic values, but on what best serves Indian economic and security interests, and what elevates India in the world.The image of “a rising India, a new India being seen more seriously abroad” helps Mr. Modi politically, Mr. Malik said. But Mr. Modi is also investing heavily in U.S. relations with an eye toward how they could help an Indian economy that is struggling to create enough jobs for its huge young population and that must put up a fight against an aggressive China next door.“Addressing China is not just about soldiers and weapons at the border, it’s also about building economic alternatives to what China offers,” Mr. Malik said.Supporters of Mr. Modi’s Bharatiya Janata Party cheer during a rally in Bengaluru, India, last month.Manjunath Kiran/Agence France-Presse — Getty ImagesThe list of agreements between the United States and India, announced at the end of a bilateral meeting at the White House, was long, covering defense, space and a wide range of technological cooperation.Defense cooperation, in particular — including deals on Indian manufacturing of General Electric jet engines and purchasing Predator military drones — received a major boost after what had been a history of reluctance and bureaucratic hurdles on both sides. Dr. Tara Kartha, a former senior official in India’s security council who dealt with U.S. on defense, said the agreement on aircraft engines was “an affirmation of trust” that would help the military partnership beyond the smaller steps of the past two decades.“Each country is trying to get past its bureaucratic constrains,” she said. “Until the bureaucracy can catch up, there will be frustrations.”Among ordinary Indians on the streets of New Delhi, opinions of Mr. Modi’s diplomatic efforts were divided.Vijay Yadav, a 26-year-old taxi driver, said Mr. Modi’s outreach abroad could not cover for how India’s economy was struggling to create enough jobs.“I saw on Instagram a news feed which was constantly touting Mr. Modi’s trip to America as if no other Indian leader had been there before,” he said. “Firstly, he must get down to solving the problems of his own countrymen before he goes abroad to project himself as a hero.”Nidhi Garg, 41, who has inherited a vegetable and fruit shop from her father, said her heart swelled each time she saw Mr. Modi representing India abroad.“Today, wherever you see, the name of our nation is being taken,” she said. “The first thing that comes to anyone’s mind when they mention the word India, they immediately connect it to Prime Minister Modi.”Suhasini Raj More

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    Plans in Congress on China and TikTok Face Hurdles After Spy Balloon Furor

    With budgets tight and political knives drawn, lawmakers seeking to capitalize on a bipartisan urgency to confront China are setting their sights on narrower measures.WASHINGTON — Republicans and Democrats are pressing for major legislation to counter rising threats from China, but mere weeks into the new Congress, a bipartisan consensus is at risk of dissipating amid disputes about what steps to take and a desire among many Republicans to wield the issue as a weapon against President Biden.In the House and Senate, leading lawmakers in both parties have managed in an otherwise bitterly divided Congress to stay unified about the need to confront the dangers posed by China’s militarization, its deepening ties with Russia and its ever-expanding economic footprint.But a rising chorus of Republican vitriol directed at Mr. Biden after a Chinese spy balloon flew over the United States this month upended that spirit — giving way to G.O.P. accusations that the president was “weak on China” — and suggested that the path ahead for any bipartisan action is exceedingly narrow.“When the balloon story popped, so to speak, it felt like certain people used that as an opportunity to bash President Biden,” said Representative Raja Krishnamoorthi of Illinois, the top Democrat on the select panel the House created to focus on competition with China.“And it felt like no matter what he did, they wanted to basically call him soft on the C.C.P., and unable to protect America,” he said, referring to the Chinese Communist Party. “That’s where I think we can go wayward politically,”For now, only a few, mostly narrow ventures have drawn enough bipartisan interest to have a chance at advancing amid the political tide. They include legislation to ban TikTok, the Beijing-based social media platform lawmakers have warned for years is an intelligence-gathering gold mine for the Chinese government; bills that would ban Chinese purchases of farmland and other agricultural real estate, especially in areas near sensitive military sites; and measures to limit U.S. exports and outbound investments to China.Such initiatives are limited in scope, predominantly defensive and relatively cheap — which lawmakers say are important factors in getting legislation over the hurdles posed by this split Congress. And, experts point out, none are issues that would be felt keenly by voters, or translate particularly well into political pitches on the 2024 campaign trail.A Divided CongressThe 118th Congress is underway, with Republicans controlling the House and Democrats holding the Senate.Jan. 6 Video: Speaker Kevin McCarthy’s decision to grant the Fox News host Tucker Carlson access to thousands of hours of Jan. 6 Capitol security footage has effectively outsourced a bid to reinvestigate the attack.John Fetterman: The Democratic senator from Pennsylvania is the latest public figure to disclose his mental health struggles, an indication of growing acceptance, though some stigma remains.Entitlement Cuts: Under bipartisan pressure, Senator Rick Scott of Florida, a Republican, exempted Social Security and Medicare from his proposal to regularly review all federal programs.G.O.P. Legislative Agenda: Weeks into their chaotic House majority, Republican leaders have found themselves paralyzed on some of the biggest issues they promised to address.“There would be nervousness among Republicans about giving the administration a clear win, but I’m just not sure that the kind of legislation they’ll be looking at would be doing that,” said Zack Cooper, who researches U.S.-China competition at the American Enterprise Institute. “It’s more things that would penalize China than be focused on investing in the U.S. in the next couple of years.”At the start of the year, the momentum behind bipartisan efforts to confront China seemed strong, with Republicans and Democrats banding together to pass the bill setting up the select panel and legislation to deny China crude oil exports from the U.S. Strategic Petroleum Reserve. A resolution condemning Beijing for sending the spy balloon over the United States passed unanimously after Republican leaders decided not to take the opportunity to rebuke Mr. Biden, as many on the right had clamored for.But with partisan divisions beginning to intensify and a presidential election looming, it appears exceedingly unlikely that Congress will be able to muster an agreement as large or significant as the major legislation last year to subsidize microchip manufacturing and scientific research — a measure that members of both parties described as only one of many policy changes that would be needed to counter China. Only a few, mostly narrow ventures have drawn enough bipartisan interest to have a chance at advancing amid the political tide.Kenny Holston/The New York Times“The biggest challenge is just the overall politicized environment that we’re in right now and the lack of trust between the parties,” said Representative Mike Gallagher of Wisconsin, the chairman of the new select panel, who has committed to make his committee an “incubator and accelerator” on China legislation. “Everyone has their guard up.”Still, there are some areas of potential compromise. Many lawmakers are eyeing 2023 as the year Congress can close any peepholes China may have into the smartphones of more than 100 million TikTok American users, but they have yet to agree on how to try to do so.Some Republicans have proposed imposing sanctions to ice TikTok out of the United States, while Representative Michael McCaul, Republican of Texas and the chairman of the Foreign Affairs Committee, wants to allow the president to block the platform by lifting statutory prohibitions on banning foreign information sources.Senator Marco Rubio of Florida, the top Republican on the Senate Intelligence Committee, and Senator Angus King, independent of Maine and a member of the panel, want to prevent social media companies under Chinese or Russian influence from operating in the United States unless they divest from foreign ownership.But none have yet earned a seal of approval from Senator Mark Warner of Virginia, the Democrat who is chairman of the committee and whose support is considered critical to any bill’s success. He was the chief architect of last year’s sweeping China competition bill, known as the CHIPS and Science Act, and he wants to tackle foreign data collection more broadly.“We’ve had a whack-a-mole approach on foreign technology that poses a national security risk,” Mr. Warner said in an interview, bemoaning that TikTok was only the latest in a long line of foreign data firms, like the Chinese telecom giant Huawei and the Russian cybersecurity firm Kaspersky Lab, to be targeted by Congress. “We need an approach that is constitutionally defensible.”There is a similar flurry of activity among Republican and Democratic lawmakers proposing bans on Chinese purchases of farmland  in sensitive areas. But lawmakers remain split over how broad such a ban should be, whether agents of other adversary nations ought also to be subject to the prohibition, and whether Congress ought to update the whole process of reviewing foreign investment transactions, by including the Agriculture Department in the Committee on Foreign Investment in the United States, an interagency group.“It’s actually kind of a more fraught issue than you would imagine,” Mr. Gallagher said.Lawmakers in both parties who want to put forth legislation to limit U.S. goods and capital from reaching Chinese markets are also facing challenges. The Biden administration has already started to take unilateral action on the issue, and further steps could box lawmakers out. Even if Congress can stake out a role for itself, it is not entirely clear which committee would take the lead on a matter that straddles a number of areas of jurisdiction.  Even before the balloon incident, existential policy differences between Republicans and Democrats, particularly around spending, made for slim odds that Congress could achieve sweeping legislative breakthroughs regarding China. Architects of last year’s law were dour about the prospect of the current Congress attempting anything on a similar scale.“The chances of us passing another major, comprehensive bill are not high,” said Senator John Cornyn of Texas, the lead Republican on the CHIPS effort, who noted that with the slim G.O.P. majority in the House, it would be difficult to pass a costly investment bill.G.O.P. lawmakers have been demanding cuts to the federal budget, and House Speaker Kevin McCarthy, Republican of California, has indicated that even military spending might be on the chopping block. Though no one has specifically advocated cutting programs related to countering China, that has some lawmakers nervous, particularly since certain recent ventures Congress created to beef up security assistance to Taiwan have already failed to secure funding at their intended levels.That backdrop could complicate even bipartisan ventures seeking to authorize new programs to counter China diplomatically and militarily, such as a proposal in the works from Senator Robert Menendez of New Jersey, the chairman of the Foreign Relations Committee, and Senator James Risch of Idaho, the top Republican, to step up foreign aid and military assistance to American allies in Beijing’s sphere of influence.That likely means that action on any comprehensive China bill would need to be attached to another must-pass bill, such as the annual defense authorization bill, to break through the political logjams of this Congress, said Richard Fontaine, the CEO of the Center for a New American Security. “China has risen as a political matter and things are possible that weren’t before, but it has not risen so high as to make the hardest things politically possible,” Mr. Fontaine said. 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    China Returns to Davos With Clear Message: We’re Open for Business

    Emerging from coronavirus lockdown to a world changed by the war in Ukraine, China sought to convey reassurance about its economic health.DAVOS, Switzerland — China ventured back on to the global stage Tuesday, sending a delegation to the World Economic Forum to assure foreign investors that after three years in which the pandemic cut off their country from the world, life was back to normal.But the Chinese faced a wary audience at the annual event, attesting to both the dramatically changed geopolitical landscape after Russia’s war on Ukraine, as well as two data points that highlighted a worrisome shift in China’s own fortunes.Hours before a senior Chinese official, Liu He, spoke to this elite economic gathering in an Alpine ski resort, the government announced that China’s population shrank in 2022 for the first time in 61 years. A short time earlier, it confirmed that economic growth had slowed to 3 percent, well below the trend of the past decade.Against that backdrop, Mr. Liu sought to reassure his audience that China was still a good place to do business. “If we work hard enough, we are confident that growth will most likely return to its normal trend, and the Chinese economy will make a significant improvement in 2023,” he said.Mr. Liu, a well-traveled vice premier who is one of China’s most recognizable faces in the West, insisted that the Covid crisis was “steadying,” seven weeks after the government abruptly abandoned its policy of quarantines and lockdowns. China had passed the peak of infections, he said, and had sufficient hospital beds, doctors and nurses, and medicine to treat the millions who are sick.A clinic waiting room in Beijing in December. The Chinese government announced a broad rollback of its zero Covid rules earlier that month.Gilles Sabrie for The New York TimesHe did not mention the 60,000 fatalities linked to the coronavirus since the lockdowns were lifted, a huge spike in the official death toll that China announced three days ago.Mr. Liu’s mild words and modest tone were in stark contrast to those of his boss, President Xi Jinping, who came to Davos in 2017 to claim the mantle of global economic leadership in a world shaken up by the election of Donald J. Trump in the United States and Britain’s vote to leave the European Union.Since then, the United States and Europe have united to support Ukraine against Russia, leaving the Russians isolated with the Chinese among their few friends. Russia’s revanchist campaign has raised questions among Europeans about whether China might have similar designs on Taiwan, and escalated security concerns among the world’s democracies.Mr. Liu steered clear of political issues like the war in Ukraine or China’s tensions with the Biden administration. But he did say, “We have to abandon the Cold War mentality,” echoing a frequent Chinese criticism of the United States for attempting to contain China’s influence around the world.But it is China’s demographics and economic growth that are raising the biggest questions among businesspeople. The decline in population lays bare the country’s falling birthrate, a trend that experts said was exacerbated by the pandemic and will threaten its growth over the long term. The 3 percent growth rate, the second weakest since 1976, reflects the stifling effect of the government’s Covid policy.“The Chinese are worried, and they should be,” said Evan S. Medeiros, a professor of Asia studies at Georgetown University. “The entire international business community is way more negative about China over the long-term. A lot of people are asking, ‘Have we reached peak China?’”Children playing in the village square after school in Xiasha Village in Shenzhen, China, in November. China’s population has begun to shrink, the government announced on Tuesday.Qilai Shen for The New York TimesProfessor Medeiros, who served as a China adviser in the Obama administration, said, “For the past 20 years, China has benefited from both geoeconomic gravity and geopolitical momentum, but in the last year it has rapidly lost both.”The signposts of China’s economic weakness are everywhere: the government announced on Friday that exports fell 9.9 percent in December relative to a year earlier. “China has an export slowdown, construction is in crisis, and the local governments are running out of money,” said Jean-Pierre Cabestan, professor of political science at Hong Kong Baptist University. “China needs the world: to boost its economy, to accompany the return to more normalcy.”Mr. Liu laid out a familiar set of economic policies, from upholding the rule of law to pursuing “innovation-driven development.” He insisted that China was still attractive to foreign investors, who he said were integral to China’s plan to achieve the government’s goal of “common prosperity.”Lianyungang port in China’s eastern Jiangsu province. The government announced on Friday that exports fell 9.9 percent in December relative to a year earlier.Agence France-Presse — Getty Images“China’s national reality dictates that opening up to the world is a must, not an expediency,” Mr. Liu said. “We must open up wider and make it work better. We oppose unilateralism and protectionism.”But China’s delegation was a reminder of how the government has sidelined some of its own best-known entrepreneurs as it has reined in powerful technology companies. Jack Ma, a co-founder of the Alibaba Group, used to be one of the biggest celebrities at the World Economic Forum, holding court in a chalet on the outskirts of Davos. Now shunted out of power, Mr. Ma is absent from Davos.Instead, China sent less well-known executives from Ant Group, an affiliate of the Alibaba Group, as well as officials from China Energy Group and China Petrochemical Group. Unlike other countries, notably India and Saudi Arabia, which plastered buildings in Davos with advertisements for foreign investment, China has been low-key, holding meetings at the posh Belvedere Hotel.After his speech, Mr. Liu, who has a command of English and holds a graduate degree from Harvard, met privately with business executives. Some expected him to be more candid in that session about the challenges China has faced.Mr. Liu did not meet top American officials in Davos, though he will meet Treasury Secretary Janet Yellen in Zurich on Wednesday. Martin J. Walsh, the labor secretary who is at the conference, said he welcomed China’s return. “China’s in the world economy,” he said. “We need to engage with them.”Mr. Liu speaking on Tuesday.Fabrice Coffrini/Agence France-Presse — Getty ImagesThough Mr. Liu, 70, has a significant international profile — having led trade negotiations with the Trump administration — China experts noted that he is not in Mr. Xi’s innermost circle. He is also no longer a member of the Chinese government’s ruling Politburo, though analysts said he retained the trust of Mr. Xi.When he spoke at Davos in 2018, Mr. Liu’s speech was among the best attended of the conference. This year, however, about a quarter of the hall emptied before Mr. Liu spoke, after having been packed for a speech by Ursula von der Leyen, the president of the European Commission.The difference in crowd sizes reflected the reshuffled priorities of the West, now focused on exhibiting unity against Russian aggression.Ms. von der Leyen, who celebrated that solidarity in her remarks, did not exactly warm up the audience for Mr. Liu. She accused the Chinese government, in its drive to dominate the clean-energy industries of the future, of unfairly subsidizing its companies at the expense of Europe and the United States.“Climate change needs a global approach,” she said in a chiding tone, “but it needs to be a fair approach.”Mark Landler More