[Global Focus] Xi Jinping's Third Term Changes 'Diplomacy'... Leaders Flock to Visit as Xi Positions Himself as Mediator

Summit with President Putin: Ostensible 'Mediation' but Actually Strengthening Economic Cooperation Against Western Sanctions with Practical Gains in Gas Supply and Yuan Settlements

Chinese President Xi Jinping has begun expanding his engagement with the international community, starting with a summit meeting with Russian President Vladimir Putin. He appears to be aiming to increase his leverage by signaling a more active involvement in inter-state issues. Leaders of some European countries, which had aligned with the U.S. in the Ukraine war, are also rushing to visit China and preparing for talks with President Xi.

What Did Xi Jinping Gain from the Summit with Putin?

The official rationale President Xi presented for the meeting with President Putin was to mediate the Ukraine war. However, in reality, he secured tangible benefits by obtaining commitments from Russia for gas supplies and the expansion of yuan-denominated settlements. After the summit, President Putin announced plans to build a new gas pipeline to send more gas to China and pledged to supply at least 98 bcm (1 bcm = 1 billion cubic meters) of gas to China by 2030. Russia also agreed to support the yuan, which challenges the U.S. dollar's dominance, by planning to use the yuan not only in trade with China but also in transactions with other countries.

The purported 'mediation' did not yield noticeable results. While calling on the U.S. and its allies to lift sanctions on Russia, China did not propose any withdrawal or ceasefire from Russia in Ukraine. No specific timeline was provided for mediation proposals; instead, China emphasized its 'peace and dialogue' approach in contrast to the U.S.'s 'war and sanctions,' placing pressure on the U.S.

The U.S. foreign affairs magazine Foreign Policy (FP) focused on Xi's objectives in this summit, reporting that "there is speculation that even if relations with the U.S. and its allies are severed, Xi aims to deepen ties with Russia and become the leader of friendly nations." It interpreted that despite not achieving immediate clear results and facing external criticism, there was a long-term grand strategy to establish himself as the leader of allied countries.

This analysis arises from the fact that President Xi pushed ahead with the summit despite inevitable criticism from Western alliances. In Putin's case, the relatively straightforward motive is to publicly demonstrate that he has the support of China, a G2 country, despite international condemnation.

Regarding the expansion of yuan settlements, FP viewed it as significantly increasing the challenge to the dollar. The outlet stated, "This is a stage that could make the yuan play a more important role in the global economy," and assessed that "its influence will grow in oil trade, historically a dollar stronghold."

The state-run Global Times (GT), which has presented a favorable view of Xi's actions, stated, "China's mediation proposal has received broad recognition from the international community," and evaluated that "Europe has paid a heavy price due to the Russia-Ukraine conflict, and the European mainstream recognizes the need for strategic autonomy, so they yearn for peace and negotiations to mitigate the adverse effects caused by the crisis."

[Image source=Yonhap News]

Samsung and Apple Attend Chinese Forum... Leaders of Major Countries Visit China One After Another

The recent 'China Development High-Level Forum' held in Beijing for the first time in three years attracted significant attention due to the large attendance of global companies. Hosted by the State Council to explain foreign economic exchanges and China's policy directions, the forum was attended by Samsung Electronics Chairman Lee Jae-yong, Apple CEO Tim Cook, as well as senior executives from global companies such as Mercedes-Benz, Siemens, and Aramco. This occurred shortly after the U.S. announced detailed regulations on guardrails to prevent semiconductor law subsidies from being used in ways that threaten national security on the 21st (local time), yet the forum was ultimately successful.

GT interpreted the attendance of CEO Cook and other major corporate representatives as reflecting "the determination of U.S. companies toward the Chinese market, despite increasing demands from U.S. officials for economic decoupling and supply chain restructuring from China."

Schedules for visits by leaders of major countries are also being arranged one after another. Spanish Prime Minister Pedro S?nchez will attend the Boao Forum in Hainan, China, on the 30th of this month and then hold a summit with President Xi in Beijing on the 21st. French President Emmanuel Macron is also expected to visit China early next month to meet with President Xi. The main topic is reportedly the Ukraine war. Spain is the rotating chair of the European Union (EU) Council in the second half of this year, and President Macron has taken on the role of mediator in the Ukraine war situation.

Singapore Prime Minister Lee Hsien Loong will make a state visit to China from today until the 1st of next month and meet President Xi in Beijing. GT forecasted that Lee's visit would elevate bilateral relations and cooperation. In a recent interview with Chinese media, Prime Minister Lee praised China, saying, "China is developing rapidly and its contribution to the global economy is significant. It is very important to build an open and sustainable relationship with China." Brazilian President Luiz In?cio Lula da Silva, who postponed his China visit due to pneumonia symptoms, is also expected to visit China once he recovers. Additionally, Italian Prime Minister Giorgia Meloni, European Commission President Ursula von der Leyen, and European Council President Charles Michel are preparing to visit Beijing one after another. President Xi is expected to emphasize China's economic growth policies post-reopening to visiting leaders and express China's position and mediation willingness regarding the 'Ukraine crisis.'

China is also openly signaling its intention to be more actively involved in global regional issues going forward. According to Xinhua News Agency, during Xi's visit to Russia, Foreign Minister Qin Gang held a press conference and stated that "the international community expects China to play a greater role in resolving regional issues through this summit," and "in times of global turmoil and uncertainty, President Xi once again made important decisions with insight and direction." He added, "(President Xi) demonstrated strategic determination, political wisdom, and courage as a world-class great power leader."