China can show global leadership on Russia's invasion of Ukraine

OVER the past years, China has been gearing up to contest America's global leadership as it attempts to take centre stage in the world, particularly on the economic front.

There is the Belt and Road Initiative, a colossal infrastructure project launched in 2013 by President Xi Jinping, that would stretch from East Asia to Europe, significantly expanding China's economic and political influence. Its technology sector has grown so rapidly in the last 2 decades, it is widely seen to have challenged the US' long-held dominance. Advancements by companies like Huawei, WeChat, Baidu, Tencent and others have helped fuel the Chinese economy's supercharged growth during the boom years. Holding the position as the world's second largest economy, China's economic prowess cannot be doubted. However, while many governments want to build better relations with Beijing, deep caution, if not mistrust, persists over its ideological posture and intentions.

Beijing's stance on the Russian aggression in Ukraine - not least its reluctance to call the unprovoked attack on a sovereign neighbour an invasion - is not helping to improve its global image. China prefers to promote talks between Russia and Ukraine and does not support the sanctions the international community have imposed. On Monday, Chinese Foreign Minister Wang Yi described the friendship between China and Russia as "rock solid". But any benefits from supporting Russia could be outweighed by increasing risks and costs, forcing China to weigh carefully how much it wants to help its political partner when Western sanctions start to hurt. A misstep could trigger secondary sanctions against its own entities - something that will not be in President Xi's interests as he seeks an unprecedented third term as leader of the Chinese Communist Party. Domestically, China is facing a slew of problems, from sliding growth since the first quarter of 2021 to rising unemployment among the younger population and weak consumption. Sales to the US and the EU, worth more than US$1 trillion in 2021, accounted for roughly a third of total Chinese exports, making China vulnerable to any sanctions. China, which imported US$432 billion worth of semiconductors in 2021, is also vulnerable to Western restrictions.