have publicly rejected the PRC’s nine-dash line claims and invoked international law in support of their maritime sovereign rights.
The PRC has long challenged foreign military activities in its claimed exclusive economic zone (EEZ) in a manner that is inconsistent with the rules of customary international law as reflected in the United Nations Convention on the Law of the Sea. However, in recent years, the PLA has begun conducting the same types of military activities inside and outside the First Island Chain (FIC) in the EEZs of other countries, including the United States. This activity highlights China’s double standard in the application of its interpretation of international law. Examples include sending intelligence collection ships to collect on military exercises such as the Rim of the Pacific (RIMPAC) exercise off Hawaii in 2014 and 2018, TALISMAN SABER off Australia in 2017, 2019, and 2021, and operating near Alaska in 2017 and 2021. PRC survey ships are also extremely active in the SCS and frequently operate in the claimed EEZs of other nations in the region such as the Philippines, Vietnam, and Malaysia.
ECONOMIC POLICY
Key Takeaways
- At the end of 2022, China abruptly reversed its zero-COVID-19 policy. The decision to implement China’s reopening took most by surprise and was probably triggered by countrywide protests against the PRC’s zero-COVID-19 policies, economic pressures, and fiscal difficulties for local governments.
- The 20th Party Congress emphasized the importance of quality growth rather than the speed of growth. General Secretary Xi also highlighted common prosperity, more equitable access to basic public services, a better multi-tiered social security system, and cultural and green developments as a few of China’s economic initiatives.
- The PRC’s ongoing military modernization objectives are commensurate with and part of China’s broader national development aspirations. China’s economic, political, social, and security development efforts are mutually reinforcing and support China’s strategy of national rejuvenation.
- China’s tools of economic statecraft include inducements such as infrastructure investments under BRI; industrial and technology policies such as Made in China 2025 that seek foreign technology transfers in exchange for market access; protectionist policies and legal barriers for foreign firms to compete in China’s domestic market; selective observance of trade commitments; and economic coercion against other states.
The PRC’s military modernization objectives are commensurate with and part of China’s broader national development aspirations and work in coordination with China’s economic policies and systems. PRC’s leaders directly link the pace and scale of the PLA’s modernization with the country’s overall development. The PRC’s economic, political, social, and military development
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OFFICE OF THE SECRETARY OF DEFENSE
Annual Report to Congress: Military and Security Developments Involving the People's Republic of China
