Xi meets Putin; US may cut PRC tariffs soon; Made in China weapons down Indian jets

Both sides firmly oppose any acts to incite other countries worldwide to take a hostile stance toward China and Russia or to smear Sino-Russian cooperation. China and Russia will strengthen coordination and resolutely counter the ‘dual containment’ policy that the United States is pursuing against them 双方坚决反对在世界各地鼓动其他国家对中俄采取敌对立场并抹黑中俄协作的行径。中俄将加强协调配合，坚决应对美国对中俄实施“双遏制” - Russia-China joint statement

Summary of today’s top items:

1. Xi and Putin meet - According to the CCTV report of their meeting Xi told Putin:

Today, in the face of unilateralist backlashes and acts of power-political bullying, China will join with Russia in shouldering the special responsibilities of major powers and permanent members of the UN Security Council, courageously standing firm to promote a correct view of World War II history, safeguard the authority and status of the United Nations, resolutely defend the fruits of the WWII victory, firmly uphold the rights and interests of China, Russia, and the broad community of developing countries, and work together to advance an equal and orderly multipolar world and inclusive economic globalization...

The two signed the “Joint Statement between the People’s Republic of China and the Russian Federation on Further Deepening the China–Russia Comprehensive Strategic Partnership of Coordination for a New Era on the Occasion of the 80th Anniversary of the Victory in China’s War of Resistance Against Japanese Aggression, the Soviet Great Patriotic War, and the Founding of the United Nations” [See next item] and exchanged “over twenty bilateral cooperation documents, covering areas such as global strategic stability, upholding the authority of international law, biosafety, investment protection, digital economy, quarantine, and film cooperation”.

2. Joint Statement - It is long, with more direct criticism of the US than in their previous one. Those hoping for a “reverse Nixon”, or who think that if only the US were nicer to either country they would no longer need to work together and “取暖抱团 huddle together for warmth” have not been paying attention to the deepening ties between the two over the last decade-plus, and their shared goals in diminishing the US and remaking the global order to suit their ambitions.

Some excerpts:

The two sides reaffirm that maintaining close relations between the two militaries is of special significance, helping the two countries more forcefully defend sovereignty and national interests and effectively respond to traditional and non-traditional threats and challenges. The two sides will continue to strengthen military and military-technical cooperation, benefiting the peoples of China and Russia and maintaining global and regional security. The two sides will further deepen military mutual trust and coordination, expand the scale and scope of joint military exercises, regularly organize joint maritime and air patrols, strengthen exchanges and cooperation in bilateral and multilateral frameworks, and promote China-Russia military cooperation to a higher level...

Support Chinese and Russian media organizations in providing objective and fair coverage of the two countries' friendly relations, economic and social development, etc., deepen policy dialogue, joint production, exchange of audiovisual content, application of new technologies, talent training, and holding major media forums, articulate common external positions in the global media space, and cooperate with each other within the framework of global and regional media organizations. The two sides are willing to work together to strengthen the protection of journalists and safeguard citizens' right to accurate information…

Both sides firmly oppose any acts to incite other countries worldwide to take a hostile stance toward China and Russia or to smear Sino-Russian cooperation. China and Russia will strengthen coordination and resolutely counter the ‘dual containment’ policy that the United States is pursuing against them.

Both sides note that the United States and its allies are attempting to extend NATO eastward into the Asia-Pacific, forming exclusive ‘small circles’ in the region, courting local countries to implement their ‘Indo-Pacific Strategy,’ thereby undermining regional peace, stability, and prosperity. Both sides oppose the formation of a ‘nuclear-sharing’ military alliance targeted at China and Russia, the deployment of nuclear weapons systems in the region under the pretext of ‘extended deterrence,’ and the deployment of global missile-defense systems and land-based intermediate-range missiles that damage strategic stability.

3. Trump preparing to cut China tariffs? - Trump told reporters today that tariffs on China may be coming down soon, and soon after the New York Post reported that the US may cut the 145% rate to 50-54% as soon as next week. So are Trump officials are using the New York Post to leak a significant cut in tariffs on PRC goods ahead of the weekend meeting with He Lifeng, perhaps to give the PRC side time to decide to match it? A cut to 50-54% from 145% is significant, but tariffs at that rate are still punishing, though a step back from effective embargo.

4. No more real estate pre-sales? - Bloomberg reports that policymakers may end the practice of allowing sales of new homes before construction is complete. Such a move might slow new construction and stabilize current prices, but it would also be another blow to cash flow for real estate developers

5. Preparing to implement the Private Economy Promotion Law - The law goes into effect May 20th, and today the State Council Information Office held a press conference with Wang Ruihe, Deputy Director of the Legislative Affairs Commission of the Standing Committee of the National People's Congress, Zheng Bei, Deputy Director of the National Development and Reform Commission, Wang Zhenjiang, Deputy Minister of Justice, Cong Lin, Deputy Director of the National Financial Supervision and Administration, and Fang Guanghua, Vice Chairman of the All-China Federation of Industry and Commerce to discuss the implementation.

6. AI models and Selected Works of Xi Jinping on Economy - Tang Jie, a professor in the Department of Computer Science and Technology at Tsinghua University, made his contribution to the to the People's Daily series "In-depth Study and Implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era · Experts Discuss Volume I of the Selected Works of Xi Jinping on Economy" with "Vigorously Promote the Development of Large-scale AI Models in Our Country". I have posted a full translation here.

7. Did Pakistan use PRC jets and missiles to down Indian fighter planes? - The information around the India-Pakistan conflict is very polluted, so it has been hard to know how many Indian fighters Pakistan shot down. Two US officials told Reuters that J-10s sold by China to Pakistan shot down two Indian planes, at least one of which was a French-made Rafale. That report did not confirm what types of missiles were used, but others suggest it was the Chinese PL-15. This is a milestone for PRC defense hardware and probably a boon for future sales, and has also led to lots of nationalist outpouring. There is another report, though not confirmed outside of India, that the Indians destroyed Chinese made HQ-9P and HQ-16 missile defense systems, so if true perhaps this mess is a mixed bag for PRC weapons systems.

Thanks for reading, and don’t miss this week’s episode of Sharp China which I published earlier today.