A Softer Tone From China: Navigating Domestic challenges and Global Diplomacy

As President Xi Jinping grapples with domestic economic challenges, China presents a gentler face to the world. Beijing released an Australian journalist, rolled out an invitation to the US military for a defense forum, and sanctioned a significant $4.2bn debt restructuring agreement with Sri Lanka. Although hailed by the US, analysts caution that this change in attitude may only be temporary and previous tensions could re-emerge soon.

“China is keen to reassuage the world that it is business as usual,” reported Noah Barkin, a China foreign relations analyst with the Rhodium Group. The release of Australian news correspondent Cheng Lei, held on national security charges for three years, marks another step towards a warmer relationship with Australia, potentially paving the way for a visit by Australia's Prime Minister.

Indeed, the US has received an invitation to a defense forum in Beijing, indicating a potential thaw in military relations. This welcoming gesture was coupled with President Xi's complimentary sentiments for a US delegation led by senator Chuck Schumer.

While hosting a forum commemorating the 10th anniversary of his Belt and Road Initiative, Beijing reached an agreement with Sri Lanka to restructure over $4bn of debt and drafted a memorandum of understanding to reorganize Zambian debt. China's foreign ministry, however, has offered no response yet to these developments.

"Xi Jinping is making nice with Western powers to stem the tide of multinationals exiting China and to counter the risk of being excluded from the global supply chain," posits Willy Lam, Senior Fellow at US think tank, Jamestown Foundation.

Despite this diplomatic shift, China's maritime confrontation with the Philippines in the South China Sea continues. China's desire to strengthen its economic and political ties with developing nations is seen both as a strategic economic move and a part of Xi's vision for a multipolar world order.

China is keen to debunk accusations of "debt trap diplomacy" linked to the Belt and Road Initiative, an ambitious project connecting Asia, Africa, and Europe through infrastructural investments and financial aid.

"The purpose of the Belt and Road Initiative has always been to assist developing nations,” notes Huiyao Wang, president of the Centre for China and Globalisation.