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This Week in China

Dialing tone

There was a seemingly unplanned call this week between Donald Trump and Xi Jinping, and while increased communication is welcome, there is not much clarity over what exactly came of it. It seems now that, despite some claims to the contrary, the call was initiated by Washington under the guise of a nudge for China to continue to implement some of the policies and trade deals it recently agreed to in the talks in South Korea.

But the timing also aligns with a need to provide stability vis-a-vis Japan’s recent security comments related to Taiwan. On the Japan side, a tense relationship is not new and China has banned fish imports from the country, canceled flights on 12 routes in December and the Muji store in Shanghai’s Pudong Airport is currently closed. All tactics that we have seen before in some way or another. But the increased talk of the island is noteworthy, with Japan’s clearer stance, Taiwan’s leader announcing $40 billion extra in defence spending and the US earmarking more military resources for the island.

From what we know of the call, Trump seems to have gone as far as recognizing the issue is an important one for China but not much further. The optics for the call can be spun either way, Beijing wants to look like both the stabilizer in a region where Tokyo is suddenly loud, and also continue to show strength in its desire for a conclusion to the issue. Trumpian Washington, meanwhile, wants to…it’s not clear. But both sides got what they needed: a headline that says they’re doing what they need to do.

With that, our headline to you: Have a great weekend.

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