MISSTEPS IN XI’S GRAND MARCH

AS THE US-CHINA COLD WAR continues to escalate, China appears to be adjusting its grand strategy in Asia. The broad contours of President Xi Jinping’s emerging strategy may be seen in some of its recent moves.

First, Xi has shifted from the expansion of Chinese influence to the consolidation of gains made in the past decade. In terms of economic ties, China now seeks to cement its trade and investment relations with its neighbours in the context of the US-China “decoupling” so that it remains the economic centre of gravity in Asia even if Chinese trade with the US falls dramatically in the coming years. On the security front, Xi is determined to hold on to China’s artificial islands in the South China Sea in spite of escalating