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    Why Beijing Stands to Gain from Elon Musk’s Visit

    Tesla’s C.E.O. appears to have landed a deal that moves the company closer to bringing fully autonomous driving to a giant market. But Beijing is keen to exploit the visit for its own purposes.Elon Musk meeting with Premier Li Qiang, China’s second-highest official, on a weekend visit to Beijing that boosted Tesla stock.Wang Ye/Xinhua, via Associated PressWhy Elon Musk went to China Just days after Secretary of State Antony Blinken traveled to Beijing and warned China about unfair trade practices, Elon Musk landed in the Chinese capital. The Tesla boss’s meeting with China’s No. 2 official may have paid off: Musk reportedly cleared two obstacles to introducing a fully autonomous driving system in the world’s biggest car market.The split screen again reveals the gap between Western diplomacy and corporate imperatives. Tesla has to stay committed to China even as it faces big headwinds — a conundrum that other multinationals also face, and one that Beijing is eager to exploit.Musk is betting big on self-driving, and China is key. Tesla last week reported its worst quarter in two years as a price war hurts profit. Tesla shares have plummeted (though they’ve rebounded in recent days, and are up more than 8 percent in premarket trading) amid plans for big layoffs.Musk has tried to reassure the market by pushing ahead with a low-cost model. Fully autonomous driving is also crucial. Musk told analysts last week that if investors don’t believe Tesla would “solve” the technological challenge that is autonomous driving, “I think they should not be an investor in the company.”The carmaker faces challenges in its second biggest market. Heavily subsidized Chinese rivals are eating into sales, led by the Warren Buffett-backed BYD, which is vying with Tesla for the crown of world’s biggest E.V. maker.Teslas are banned from many Chinese government sites because of concern about what data the American company collects. President Biden’s move to declare Chinese E.V.s a security threat probably won’t have made it any easier for Tesla in China.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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    Biden and Xi seek to manage tensions in phone call as US officials head to China

    Joe Biden and Xi Jinping have clashed in a telephone call about Taiwan and US trade restrictions on technology, but sought to manage their tensions as two top US officials prepare to visit Beijing.The nearly two-hour telephone conversation on Tuesday was the two leaders’ first direct interaction since a summit in November in California that saw a marked thaw in tone, if not the long-term rivalry, between the world’s two largest economies.The treasury secretary, Janet Yellen, will leave Wednesday and visit both Guangzhou, the southern city emblematic of China’s manufacturing power, and Beijing, with secretary of state, Antony Blinken, due in China in the coming weeks, officials said.“We believe that there is no substitute for regular communication at the leader level to effectively manage this complex and often tense bilateral relationship,” national security council spokesperson John Kirby told reporters after the call.US officials said the talks were not aimed at managing but rather than resolving differences, and the two leaders were open about heated disagreements.Xi accused the United States of creating economic risks through Biden’s sweeping ban on high-tech exports to China.“If the United States insists on suppressing China’s high-tech development and depriving China of its legitimate right to development, we will not sit idly by,” Xi warned, according to Chinese state media.Biden rebuffed his appeal, with the White House saying he told him “the United States will continue to take necessary actions to prevent advanced US technologies from being used to undermine our national security, without unduly limiting trade and investment.”Biden also refused to back down on TikTok, the blockbuster Chinese-owned app that Congress is threatening to ban unless it changes hands, with Kirby saying Biden insisted he wanted to protect Americans’ data security.Xi, China’s most powerful leader in decades, has solidified power at home and taken a tough approach in Asia, with a crackdown on freedoms in Hong Kong and assertive confrontations in recent weeks with the Philippines on the South China Sea.But US observers see Xi as eager to temper the friction with the US as China weathers rough economic headwinds.At the California summit, he agreed to two key asks by the United States – curbs on precursor chemicals for making fentanyl, the synthetic painkiller behind a US overdose epidemic, and restoring dialogue between the two militaries to manage crises.Xi may also believe there is more opportunity to work with Biden, who faces a rematch in November’s presidential election with Donald Trump, who has cast China as an arch-enemy.Biden has preserved or even accelerated some of Trump’s tough measures, but has also identified areas of common interest, such as fighting climate change.skip past newsletter promotionafter newsletter promotionThe White House said Biden pressed Xi to ensure “peace and stability” across the Taiwan Strait ahead of the inauguration on 20 May of president-elect Lai Ching-te.China has denounced Lai, a longtime supporter of a separate identity for the self-ruling democracy claimed by Beijing, but US officials have been cautiously optimistic that China’s military moves ahead of the inauguration will not go beyond past practice.In the phone call, Xi told Biden that Taiwan remains an “uncrossable red line” for China, according to state media.The United States has voiced growing alarm over rising Chinese moves against the Philippines in the dispute-rife South China Sea.The Biden administration, while maintaining dialogue with China, has put a strong focus on supporting allies.In the midst of the diplomatic flurry with China, the Japanese prime minister, Fumio Kishida, will pay a state visit to Washington next week, with the Philippine president, Ferdinand Marcos, joining for three-way talks.Blinken and Yellen will both be paying their second visits to China in less than a year, marking a return to more routine interaction following the Covid-19 pandemic and soaring tensions under Trump. More

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    Former Taiwan President Ma Ying-jeou to Visit China

    A rare visit to mainland China by Ma Ying-jeou, who’s now in the opposition, is a chance for political messaging on both sides of the Taiwan Strait.As tensions fester between China and Taiwan, one elder politician from the island democracy is getting an effusive welcome on the mainland: Ma Ying-jeou, a former president.Mr. Ma’s 11-day trip across China, which was set to begin on Monday, comes at a fraught time. Beijing and Taipei have been in dispute over two Chinese fishermen who died while trying to flee a Taiwanese coast guard vessel in February, and China has sent its own coast guard ships close to a Taiwanese-controlled island near where the men died.Taiwanese officials expect China to intensify its military intimidation once the island’s next president, Lai Ching-te, takes office on May 20. His Democratic Progressive Party rejects Beijing’s claim that Taiwan is part of China, and Chinese officials particularly dislike Mr. Lai, often citing his 2017 description of himself as a “pragmatic worker for Taiwan’s independence.”On the other hand, China’s warm treatment of Mr. Ma, 73, Taiwan’s president from 2008 to 2016, seems a way to emphasize that Beijing will keep an open door for politicians who favor closer ties and accept its conditions for talks.“Beijing’s policy toward Taiwan will definitely be using more of both a gentle touch but also a hard fist,” Chang Wu-yue, a professor at the Graduate Institute of China Studies of Tamkang University in Taiwan, said in an interview about Mr. Ma’s visit.Mr. Ma with China’s top leader, Xi Jinping, in Singapore in 2015.Fazry Ismail/EPA, via ShutterstockWe 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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    U.K. to Accuse China of Cyberattacks Targeting Voter Data and Lawmakers

    The British government believes China has overseen two separate hacking campaigns, including one that yielded information from 40 million voters.The British government is expected to publicly link China to cyberattacks that compromised the voting records of tens of millions of people, another notable hardening of Britain’s stance toward China since its leaders heralded a “golden era” in British-Chinese relations nearly a decade ago.The deputy prime minister, Oliver Dowden, will make a statement about the matter in Parliament on Monday afternoon, and is expected to announce sanctions against state-affiliated individuals and entities implicated in the attacks.The government disclosed the attack on the Electoral Commission last year but did not identify those behind it. It is believed to have begun in 2021 and lasted several months, with the personal details of 40 million voters being hacked.The Electoral Commission, which oversees elections in the United Kingdom, said that the names and addresses of anyone registered to vote in Britain and Northern Ireland between 2014 and 2022 had been accessed, as well as those of overseas voters.The commission previously said that the data contained in the electoral registers was limited and noted that much of it was already in the public domain. However, it added that it was possible the data “could be combined with other data in the public domain, such as that which individuals choose to share themselves, to infer patterns of behavior or to identify and profile individuals.”In addition to the infiltration of the Electoral Commission, Mr. Dowden is expected to confirm that the Chinese targeted several members of Parliament with a record of hawkish statements about China. They include Iain Duncan-Smith, a former leader of the Conservative Party; Tim Loughton, a former Conservative education minister; and Stewart McDonald, a member of the Scottish National Party.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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    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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    China Building Fire Kills at Least 39, With Others Trapped

    The site in southeastern China housed an internet cafe and an educational center, state media said.A fire in a commercial building in southeastern China killed at least 39 people on Wednesday, as emergency workers raced to rescue people still trapped inside.The fire broke out around 3:30 p.m. local time in Xinyu, a city in Jiangxi Province, in the basement of a building that housed an internet cafe on the ground floor and an educational center upstairs, according to Chinese state media and a local government announcement.A video posted on social media by the Communist Party-affiliated outlet Beijing News showed thick black smoke billowing out of windows.Other videos posted by social media users on Wednesday, of what appeared to be the same building, showed people jumping from upper floors to a mattress on the ground outside, and a boy climbing down a ladder, wearing a backpack.At least nine people were injured, and after 8 p.m., rescue workers were still searching for people inside, according to a post by China Central Television, the state broadcaster, on the social media platform Weibo.In response to the fire, Xi Jinping, China’s top leader, called for “deep reflection” on the tragedy’s cause, state media said. He noted that this was “yet another major production safety accident that has happened recently.”On Friday, a fire at a kindergarten and elementary school dorm in central China’s Henan Province killed 13 people. While the state broadcaster did not identify the victims of that fire, some state-affiliated news media said that they had been in the same third-grade class.A fire at a mall in Xinyu also killed two people in late December.Research was contributed by More

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    China Failed to Sway Taiwan’s Election. What Happens Now?

    Beijing loathes the new president, Lai Ching-te. He aims to protect the status quo with caution and American help, but tensions are likely to rise.China’s leader, Xi Jinping, has tied his country’s great power status to a singular promise: unifying the motherland with Taiwan, which the Chinese Communist Party sees as sacred, lost territory. A few weeks ago, Mr. Xi called this a “historical inevitability.”But Taiwan’s election on Saturday, handing the presidency to a party that promotes the island’s separate identity for the third time in a row, confirmed that this boisterous democracy has moved even further away from China and its dream of unification.After a campaign of festival-like rallies, where huge crowds shouted, danced and waved matching flags, Taiwan’s voters ignored China’s warnings that a vote for the Democratic Progressive Party was a vote for war. They made that choice anyway.Lai Ching-te, a former doctor and the current vice president, who Beijing sees as a staunch separatist, will be Taiwan’s next leader. It’s an act of self-governed defiance that proved what many already knew: Beijing’s arm-twisting of Taiwan — economically and with military harassment at sea and in the air — has only strengthened the island’s desire to protect its de facto independence and move beyond China’s giant shadow.“The more hard-line, tougher approach hasn’t worked,” said Susan Shirk, a research professor at the University of California, San Diego, and the author of “Overreach: How China Derailed Its Peaceful Rise.” “That’s the reality of Taiwanese politics.”That evolution, cultural and political, comes with risks. Mr. Lai’s victory forces Mr. Xi to face a lack of progress. And while China’s full response will play out over months or years, China’s Taiwan affairs office said Saturday night that the election cannot change the direction of cross-strait relations, effectively ensuring that the dynamic of brinkmanship and stress will continue and most likely intensify.After his win, Mr. Lai promised to seek a balanced approach to relations with Beijing.Lam Yik Fei for The New York TimesChina and the United States have made Taiwan a test of competing sensitivities and visions. To Beijing, the island is a remnant of its civil war that the United States has no business meddling with. To Washington, it is the first line of defense for global stability, a democracy of 23 million people and the microprocessor factory for the world.The gargantuan stakes add gravity to every word or policy that Mr. Lai or his party might deliver now and after his inauguration in May. With Taiwan’s sense of self and China’s expectations in conflict, Mr. Xi is not expected to sit idly by.Before the election, in editorials and official comments, Chinese officials painted Mr. Lai as a villain, calling him a stubborn “Taiwan independence worker,” a “destroyer of cross-strait peace” and potentially the “creator of a dangerous war.”During the campaign, Mr. Lai, 64, a veteran politician respected by supporters for his quiet determination, said that Taiwan did not need formal independence. In a news conference after his victory, he said he would seek a balanced approach to cross-strait relations including “cooperation with China,” following the path of his predecessor, Tsai Ing-wen.But there is little chance of China changing its opinion.“Lai Ching-te is an impulsive and politically biased figure, so we cannot rule out the possibility that unpredictable and unknown developments may occur during his tenure,” said Zhu Songling, a professor of Taiwan studies at Beijing Union University.“I’m afraid it’s very dangerous,” he added, noting that Mr. Xi’s views on Taiwan were clear. That includes his insistence that force can be used if necessary.China’s top leader, Xi Jinping, and President Biden in California in November. Warnings about Taiwan have become a staple of U.S.-China diplomacy.Doug Mills/The New York TimesWestern scholars of Chinese politics are not much more optimistic.“The next four years will be anything but stable in U.S.-China and cross-strait relations,” said Evan S. Medeiros, a professor of Asian studies at Georgetown University.Like other analysts, he said to expect a familiar suite of pressure tactics.At the very least, China will keep trying to manipulate Taiwan’s politics with disinformation, threats and economic incentives. Chinese officials have also hinted they could target trade, eliminating more tariff concessions.Expanded military drills are another possibility. Chinese fighter jets, drones and ships already encroach on Taiwan almost daily.Beijing has also shown that it will keep prodding Washington to pressure Taiwan and to cut military support. Messages of alarm are becoming a common feature of U.S.-China diplomacy.In Washington, on the eve of Taiwan’s election, Liu Jianchao, the head of the Chinese Communist Party’s international department, met with Secretary of State Antony J. Blinken. The United States said Mr. Blinken “reiterated the importance of maintaining peace and stability across the Taiwan Strait.”Mr. Liu, based on other official statements, most likely warned the United States not to intervene “in the Taiwan region” — a complaint sparked by an announcement that a delegation of former officials would head to Taipei after the election. Such visits have followed past elections. China’s Foreign Ministry condemned “the American side’s brazen chattering.”There are no plans in Washington to go silent, however, or constrain cooperation. Quite the opposite. Last year, the Biden administration announced $345 million in military aid for Taiwan, with weapons drawn from American stockpiles. Bills in Congress would also tighten economic ties to Taiwan, easing tax policy and laying a foundation for economic sanctions against China if it attacks.Taiwanese forces during an anti-landing drill last summer. The U.S. has pledged $345 million in military aid to the island.Lam Yik Fei for The New York TimesHaving worked with the Americans as vice president, Mr. Lai can move faster, analysts said, possibly into more sensitive areas.The United States could increase collaboration on cybersecurity, strengthening communication networks to a point that blurs the line with (or prepares for) intelligence sharing. It could seek to place military logistics equipment on the island — a strategy the Pentagon is introducing throughout the region.It is also an open secret that American military advisers, mostly retired officers, have a growing presence in Taiwan. Some Taiwanese officials call them “English teachers.” Under Mr. Lai, many more could be on the way.“Beijing has been turning a blind eye, so the question is: What size of that presence will cross the Rubicon?” said Wen-ti Sung, a political scientist at the Australian National University’s Taiwan Studies Program. He added: “Hopefully each additional step will not be seen as overtly provocative to elicit or justify a massive Chinese reaction.”War, of course, is not inevitable. It may be less likely right now, when China is busy with a dismal economy and the United States with wars in Europe and the Middle East.Some analysts also hope that Mr. Xi will find a way to claim victory in the election and step back from antagonism. With a third-party candidate, Ko Wen-je, winning 26 percent of the vote with a vague focus on a middle path in China relations, Mr. Lai won with just 40 percent.“It’s in China’s national interest to expand the path of peaceful integration so they won’t have to fight,” Professor Shirk said. “There are a lot of people watching this interaction and Beijing’s reaction — all the investors are watching it too.”In Taiwan, however, there may be little Mr. Xi can do to polish China’s image. In recent surveys, less than 10 percent of Taiwanese respondents considered China trustworthy.“We have seen too many examples of what Xi did to Hong Kong and how he treated his people,” said Cheng Ting-bin, 56, a teacher in Taipei who voted for Mr. Lai.Most Taiwanese see their future elsewhere. On Saturday, many said they hoped the government could leverage the powerful semiconductor industry to build connections to Southeast Asia and Europe.A crowd celebrating Mr. Lai’s win on Saturday. Relations with China were less dominant than usual as an election issue.Lam Yik Fei for The New York TimesDuring the campaign, any identification with China seemed to have been erased. Though Taiwan’s official name is the Republic of China, a holdover from when Chinese nationalists fled there, R.O.C. references were hard to find. At Mr. Lai’s rallies, supporters wore shimmering green jackets with “Team Taiwan” written in English across the back.Even the Nationalist Party, known for favoring closer ties with Beijing, emphasized deterrence, the status quo and Taiwanese identity. Its candidate, Hou Yu-ih, spoke with such a strong Taiwanese accent that Mandarin speakers unfamiliar with local inflections had a hard time understanding him.In many ways, the election was less of a referendum on China policy than usual. Cost-of-living issues became more dominant in part because the candidates’ platforms on foreign affairs all aligned with what most people said they wanted: a stronger military, closer ties with the democratic world, and a commitment to the status quo that avoids provoking Beijing but also seeks to tiptoe out of its orbit.“What we want is just to preserve our way of life,” said Alen Hsu, 65, a retiree who said his father had come from China and his son serves in the Taiwanese Air Force.“China,” he added, “simply cannot be trusted.”John Liu More