China Bracing for Confrontation with the U.S.

China's National People's Congress is set to officially approved Friday an administrative overhaul that would put public security, financial regulation and technology -- areas now handled by the state -- under direct Communist Party control.

By tightening the party's control over a broader swath of government, Beijing seeks to ensure its financial system and supply chains, especially for semiconductors, are prepared for a Taiwan conflict and any Western sanctions that ensue.

Beijing appears to be bracing for a future confrontation with the U.S. It has seen the precedent set by the response to Russia's invasion of Ukraine, which largely severed Russia from international financial networks, and is itself dealing with restrictions on semiconductor exports that are hindering arms manufacturing.

"Western countries -- led by the U.S. -- have implemented all-round containment, encirclement and suppression against us, bringing unprecedentedly severe challenges to our country's development," Xi said in a speech Monday. This rare direct shot at Washington likely referred to its perceived meddling in Taiwan and measures like the chip sanctions.

China has enacted anti-sanctions legislation that observers say gives it a basis to retaliate if the U.S. and Europe take such steps in response to a Taiwan contingency. A law allowing for retired military personnel to be called up to the front lines in an emergency took effect this month.

Anonymous