Is Cooperation With China Still Possible?

David Parmer / Tokyo

Times have changed, and the US has switched from the engagement model of diplomacy promoted by Former Secretary of State Henry Kissinger to a competition model rolled out by the administration of President Joe Biden. 

Before becoming president, Biden made it clear that his first priority would be to mend alliances with traditional US allies, and then get all the allies on the same page regarding China. Biden has pretty much done this, and the Europeans and NATO are behind his move, as are the Japanese. The saying goes that there is strength in numbers and Biden has the numbers. (Trump’s “America First!” and “going it alone” went out the window on day #1 of Biden’s presidency when the US immediately re-joined the 2015 Paris Climate Accord.)

So the US and its allies face off against China in a competition that is political, strategic, and military. Some areas of competition and disagreement like trade and human rights are important and ongoing, but some like the South China Sea and Taiwan have the potential to heat up and boil over, turning into deadly conflict.

If Dr. Kissinger’s policy of engaging China is fading, does this mean that there are no areas where China and the West can meet and interact? Fortunately it doesn’t. There are several areas where the US, China, EU, NATO, and countries around the globe can cooperate.

Some of these are:

Terrorism: All countries around the world face the threat of terrorism from true believers and bad actors of all stripes and colors. No one is immune from the threat of terrorism. Cooperation and intelligence sharing across countries boosts the security of all countries involved. Information shared can save lives and prevent deadly incidents from happening. China and the US are no more immune to the threat of terrorism than any other country and cooperation makes good sense and saves lives.

Climate: Global warming affects everyone on the planet, and in addition to it not being denied, it must be dealt with by all countries in a cooperative manner. The 2021 Glasgow meeting, COP26 will bring together 97 countries in addition to the US, UK and EU. These countries, including China, have pledged to go carbon neutral by mid century. In addition to prevention and preservation countries must work together to assist countries and victims impacted by climate-related disasters.

Trade: Global trade has been valued at around $20 trillion. With the COVID pandemic in full swing trade was expected to decline sharply, but this did not occur. Trade remained robust during the pandemic. Keeping this system intact and running smoothly is in everyone’s interest, and tariffs and sanctions rendered on a tit-for-tat basis do nothing to promote the common good. Fair trade and a level playing field are essential for the smooth flow of goods worldwide. China, with its vast manufacturing capacity can engage the world and benefit all parties concerned.

Health: After 2020 and the COVID pandemic it is impossible to deny that human health is a planetary issue affecting every living person. Sharing scientific and medical information and technology are vital to keeping the world safe and healthy. No country or region can withhold information or horde supplies of materials or medicines from less affluent countries because the purely arbitrary geographical borders cannot halt the spread of disease and pandemics.

From just these examples we can see that while nations might compete strategically or ideologically, in the long run it is also vitally important that they cooperate with other nations in the areas mentioned here for the good of humanity and for the good of the planet.

Photo: World Ecconomic Forum via flickr

 

 

 

 

 

 

Patent Waivers For COVID Vaccines? Yes/No.

As for COVID-19 vaccines, rich countries have gotten the lion’s share of the vaccine and poor countries have got far less.

How to address this problem of inequality? Last year, a proposal was floated by India and South Africa that WTO restrictions (TRIPS Agreement) on intellectual property be lifted and poorer countries by allowed to manufacture the vaccine locally to counter the disparity and to fight the pandemic. The United States, under President Joe Biden has gotten behind this remedy, as have China and Russia and the World Health Organization.

But not everyone was on board: Japan, Korea, UK and the EU and Germany were against the idea. In early June the European Parliament voted to waive IP restrictions for the COVID 19 vaccines. Still, the EU stands firm.

The question really boils down to this: Will waiving IP rights on the vaccine create and equitable distribution of vaccines and help stop the pandemic? Supporters say yes it will, critics say no it won’t. 

Arguments against the IP waiver say that IP is not the problem, that technology and production are. Even if IP protections are waived say the critics, poorer countries do not have the skill or infrastructure to produce the vaccines correctly in the short term. Another reason given is a shortage of raw materials that are desperately needed by the current manufacturers to produce vaccine at speed and in volume.

Other arguments against the lifting of IP protection include:

  • Waiving IP production my reduce quality of products
  • There is a danger of fake products becoming common
  • The lack of IP protection is a dis-incentive to investment

One proposal now being put forward as an alternative to suspending IP protection is for countries and organizations that are already producing vaccines to ramp-up production. The EU also proposes waiving export restrictions on vaccines and components.

The need for more vaccines is real and global. Is waiving IP protection the answer to this shortage. Let us know your thoughts on this vital issue.

 

Global Focus Shifts To The High North.

Well there are climate change deniers all over the world but not among the governments of the countries of the Far North. For countries that have territory about the Arctic Circle, global warming and its effects are very real. These countries include:

  • Canada
  • Denmark
  • Finland
  • Iceland
  • Russia
  • Sweden
  • Norway
  • US

The effects they are observing are not the stuff of tree-hugger rants, but rather an opening of their region to shipping, resource exploitation, tourism, and of course geopolitical rivalry. Global warming in the arctic is reported to be three times the global average and has opened up a world of possibilities, not all of them good.

Russia’s  GDP is estimated to be 25% generated by its arctic territory has a real vested interest in this changing landscape.The Russian military, many of whose northern bases are relics of the Cold War with the US, are being re-militarized. Russia’s biggest concern might be the Northern Sea Route which skirts its northern border and cuts shipping time from Asia to Western Europe by about 2 weeks. Moreover, from the Russian point of view, the US and NATO are uncomfortably active on the periphery of its territory.

The US has its own interests in the arctic. The first is with its NATO allies who must surely be heartened by the fact that the Biden administration has placed such emphasis on its alliances, particularly the key one with its traditional European friends. For example, the US signed a revised agreement with Norway in April allowing it to build facilities in the country with a view toward countering Russian moves in the region. Many analysts see the US playing catch up with the Russians who have been taking their arctic borders seriously for a long time, and who have put in resources to ensure their ability to compete if not dominate all comers. ( For example: Russia has 40 icebreakers vs. just 2 for the US.)

And then there is China. China doesn’t appear on the list of countries with territory in the arctic, but since 2018 China has been referred to as a “near Arctic” country. Clearly, China’s main interest in the High North is with regard to its Belt and Road program. Russia may cast a wary eye on Chinese moves to become a player in arctic development and research feeling hemmed in by its neighbor.

In May 2020 the Arctic Council Ministerial Meeting was held and Russia assumed the chair. The message to come out of the meeting was one of peace and stability for the region, and the meeting was of such importance that both US Secretary of State Tony Blinken and Russian Foreign Minister Serge Lavrov took time to make an appearance.

Peace and stability for the region seems like a good thing, and if cooperation is the order of the day it is good. However, with competition heating up, and activity in the region showing no signs of slowing down, it may be just a matter of time before misunderstandings and disagreements arise.

Regardless, it looks like thinkers and planners around the globe from the government and the military will have to add this region to their portfolio of early 21st century potential flashpoints.

Photo: Martha de Jong-Lantik via flickr

 

 

What Does The US Troop Withdrawal From Afghanistan Mean For China?

                          by David Parmer / Tokyo

September 11,2021 will see the last American soldiers leave Afghan soil. Well, that is the plan anyway. The US’s “forever war” had to come to a close sooner or later. September 2021 is sooner than many think prudent, but a lot later for those who think that an anti-terrorist action morphed into a long-term, unsuccessful and costly exercise in nation building.

Opinions are mixed on what will happen in Afghanistan once the US and NATO leave. Now not many experts see a collapse of the Afghan government similar to that when the US pulled out of Viet Nam in 1975. There seem to be too many stakeholders in the region including Pakistan and Russia and Tajikistan and China that have no interest in seeing a failed state on their borders or in their region.

A civil war might be one outcome if the government collapses, or loses any claim to a mandate to govern. Some sort of compromise might be worked out with the Taliban in power sharing, but an Isis (Daesh) controlled “caliphate” would be in no one’s interest.

China has real concerns about a spillover of any chaos taking place in Afghanistan. Even though it takes robust measures to patrol its border with Afghanistan, it still must be vigilant to prevent an increase in cross-border crime, smuggling, or terrorism.

East Turkestan Islamic Movement (ETIM) terrorists dedicated to removing China from Xingjiang have found shelter with the Taliban, and there are reports of Uyghur fighters participating in the war in Syria.

China has supported the Afghan government military in terms of supplying both training and equipment. Beijing has vehemently denied that there have ever been any PLA boots on the ground despite press reports to the contrary. Perhaps China’s “plausible deniability” is that if anyone were in Afghanistan, it would be police and not PLA.

Whether China’s efforts in Xinjiang to inoculate the populace against radical Islam are working will only be able to be grasped in the long run. China’s angry pushback has neither explained its actions in Xinjiang nor done anything to change perceptions in most of the rest of the world.

After September 11, 2021 China will continue to have its Xinjiang Uyghur problem and the political fallout worldwide, and it will also have the threat of anything from a civil war to an era of Afghan warlordism to the possibility of an ISIS caliphate on its border.

With this kind of situation, it is pretty hard to find any kind of “silver lining.” What do you think about this? Please let us know.

Photo: US Army via flickr

Photo: Matthew Lee via flickr

Taiwan And The Outcome Nobody Really Wants.

The good news: nobody wants a war over Taiwan. Yet the Taiwan question sits at the head of a list of international situations that threaten the world order in the first quarter of the 21st century. These situations include the Iran nuclear question, Russian intentions in Ukraine, the ongoing war in Syria, and the widespread insurgency in the part of the world that is the vast African Sahel region.

There was not much hope of a radically different approach to US-China relations when the stormy transition from the Trump to the Biden administration was complete. And except for tone there has not been much change. Certainly the tone has changed, the insults, racial prejudice, and right-wing rhetoric are gone, but what the US sees as its fundamental interests in the East China Sea and South China Sea and in the Indo-Pacific has not changed.

President Biden’s approach is to get all of the US allies on the same page and working toward common goals, especially towards China. The recent summit meeting between Japanese Prime Minister Suga and President Biden underline this policy. Social media posts from Biden and Secretary of State Blinken remind followers that the US is “back.” 

If you examine US policy now and in the recent past, not much has changed regarding Taiwan. The US sells arms to Taiwan and intends to continue to do so. The US states that it has an “interest” in a free Taiwan, but has no mutual defense treaties, and has not committed to coming to Taiwan’s defense should an invasion from the mainland take place.

For the foreseeable future the US will do what it has done in looking after its interests in the Pacific for half a century: keep its military presence strong and ready and its alliances intact.

As for China, it will continue to move forward following Xi Jinping’s China Dream. Socialism with Chinese characteristics will continue to be the economic system, China’s military power will continue to expand and become even more sophisticated, and the Belt and Road initiative will continue to expand China’s economic and soft power around the world.

This brings us back to the initial assertion: nobody wants a war over Taiwan. But could one “happen”? One answer might be to look back at the US-Soviet cold war that lasted for several decades without a major incident. Yet for China, border wars have occurred with other large states and have not led to wider wars.

In 1962, China and India had a short border war which saw India be soundly defeated by China which after a short time withdrew its troops. China and Russia had a “shooting” war in 1969 along the Ussuri River that lasted some seven months and resulted in the loss of life on both sides before it was resolved. Ten years later, in 1979, the PRC invaded neighboring Viet Nam for a short but bloody conflict before retreating. Here we see three instances where China was not averse to using military force along its borders to achieve its long-range aims. 

China has had short, violent conflicts where it thought it could “win” by taking decisive, aggressive action. The question remains: Is such reliance on short violent conflict “baked in” to Chinese military thinking and strategy? And could China “assume” that it was getting into a short, violent conflict (say the invasion of Taiwan) when in fact the United States was prepared for a long, protracted multi-front confrontation?

In conclusion, there seem to be only two courses of action available right now:

1) The status quo. A new “cold war” where China and the US face off for decades but do not engage in a shooting war.

2) An incident that convinces China that its national interests are being violated (say by Taiwan Independence) that it is forced to take military action and invade.

For the present and the immediate future there seem to be no real solutions to the Taiwan question. Nobody wants a war, but is war inevitable?

Let us know what you think about this important issue.

 

 

 

 

 

 

 

 

Photo: ROC (Taipei) Government via flickr

Person of Interest: National Security Advisor Jake Sullivan

by David Parmer / Tokyo

New faces in Washington are no surprise, but with the Biden administration we get a collection of new faces that have been seen before in the nation’s capitol. Many of the Biden folks have been at the top tier before but just not in the spotlight. General Lloyd Austin was around before, as was Anthony Blinken and even Avril Haines. Now, these first tier players have moved from assistant this and deputy that to Secretary of Defense, Secretary of State and Director of National Intelligence. And then there is Jake Sullivan.

Jake Sullivan, Joe Biden’s National Security Advisor has been around in the thin oxygen of national politics and policy for “a while” and gotten his ticket punched. Mr. Sullivan graduated from Yale University, did an MA at Oxford, and cycled back to Yale for his law degree. He practiced law in Minnesota where he worked for Senator Amy Klobuchar.

He then worked for both Hillary Clinton and then Barack Obama and worked as Clinton’s Director of Policy Planning. He worked for Obama as Deputy Assistant to the President and National Security Advisor to then Vice President Joe Biden. In 2013 he worked on the JCPOA or Iran Nuclear Deal. In 2016 Mr. Sullivan was again working for Clinton, this time during her presidential campaign. After a stint back in the private sector, in 2020, Sullivan was selected by President-Elect Biden to be his National Security Advisor. 

The Biden administration quickly undid a lot of Trump-era policy and infrastructure, but remains fairly consistent on China policy. Mr. Sullivan signaled no big changes in China policy during his confirmation hearing and even went on to support some of the views of former Secretary of State Mike Pompeo, including the question of the violation of human rights of the Uighur minority.

In Biden’s Washington it looks like the band is back together. Biden’s team is deep with experience and peopled with appointees that the president knows and trusts. Former President Donald Trump might call Biden’s team a return of the “deep state.” Around Washington (and around the world) many people are happy about this, and happy to see new-old faces like Jake Sullivan hard at work.

Photo: The White House via flickr.

 

 

 

“The Enemy of My Enemy…” China, the USA, and Europe in Late 2020.

                             by David Parmer / Tokyo

Introduction:

The often-repeated phrase in its entirety is: “The enemy of my enemy is my friend.”

But in late 2020, when it comes to China-VS-USA and Europe in the middle, it seems that there are no friends to be found for any of the participants. Whatever way you draw the triangle, “friendship” is not one of the components.

In this article we will take a look at the relationship among the three countries and see how the dynamics as they now stand spell only disengagement in the short term and even conflict in the long term despite historical and long-standing mutual interests.

Finally, how is China losing the battle for mind-share, not only worldwide, but particularly in Europe?

 Europe Puts European Interests Over American Interests and Goes Its Own Way

  1. Huawei Situation

Background: Huawei, one of the top 3 mobile phone manufacturers has, since May 2019 been the subject of crippling US sanctions which have significantly impacted its business. More than just a sideshow to the ongoing US-China trade war, the US sanctions have impacted global procurement not only in consumer products but also negatively affected IT networking. The US complaint about Huawei focused on three issues:

  • Cyber security
  • Links to the People’s Liberation Army (PLA)
  • State sponsorship of Huawei

After a series of extensions the Huawei ban has come into full effect in 2020. The company has admitted that the sanctions are taking a major bite out of its business, but at the same time has found some temporary work-arounds in its mobile phone business. Huawei uses the Android system, but Google is now prohibited from working with Huawei. Huawei ships Android phones without the Google applications, which makes the phones potentially less attractive. Huawei is trying to court developers to its platform in hopes of increasing its appeal to consumers. Recently the company has come out with the Harmony OS which it will start using with certain devices, but still use Android for phones. Some say it is all a matter of time before Huawei Harmony becomes their default OS for all devices. (2021?)

As for the business-to-business side (B to B) of Huawei, the company operates in 170 countries worldwide. As the rollout of 5G technology takes place worldwide, Huawei is at stage-center in the US-China trade disagreement and sanctions. And the US has/is putting enormous pressure on the Europeans to exclude Huawei from their 5G upgrades. So far, the UK has decided to exclude Huawei.

There has been no stampede among the Europeans to get behind the US and the UK on this issue. However, Sweden, Spain, Austria, and Hungary have not excluded Huawei. France has ruled out a total ban on Huawei and Germany is sitting on the fence. For many countries, excluding Huawei is not only a political issue, but a technical one as well: many countries have legacy Huawei equipment, and switching suppliers to non-Chinese suppliers or local suppliers is a real headache. German’s decision, when it does come, will probably clarify the issue for many Europeans. Which countries will finally line up with the US, UK and Australia on the Huawei ban remains to be seen, but many countries are certainly feeling the heat generated by the US-China rivalry.

  1. The JCPOA or “Iran Deal”

 The 2015 Joint Comprehensive Plan Of Action (JCPOA) was an agreement between Iran and six other countries including China, Russia, the United States and the United Kingdom as well as Germany and the European Union. The agreement called for Iran to curtail enrichment of uranium and permit on-site inspection by the International Atomic Energy Agency. In exchange for this Iran would have sanctions by the European Union, United Nations and the United States lifted. There was also the matter of some Iranian Ian funds being released.

The agreement went into effect in January 2016 and Iran was found to be in compliance with the agreement as a result of several subsequent on-site inspections. In May 2018 US President Donald Trump withdrew the United States from the JCPOA citing hidden Iranian nuclear programs that were not reported in the past.

While the US withdrawal was not a fatal blow to the JCPOA, it did create serious problems. If the Trump administration assumed that the parties to the agreement would simply walk away, they were mistaken. The Europeans and the Chinese and the Russians did not walk away from the deal, but rather tried to keep it alive by all means possible.

The Europeans even came up with a barter scheme whereby Iran could exchange its oil for goods as well as other ways to assist Iran in the face of American sanctions. The Europeans have tried to keep the JCPOA on “life support” and keep the agreement intact, much to the annoyance of the Trump administration and the Netanyahu administration in Israel.

On September 21, 2020 Secretary Pompeo announced that the US was re-imposing sanctions on Iran under the “snapback” provisions of the JCPOA. Earlier in the summer, President Donald Trump had announced this action to the consternation of the remaining JCPOA participants including Iran. Since the US was no longer a member of the agreement, it could not possibly call for “snapback.” But that is what the Trump administration did. And proceeded to re-impose sanctions. However the parties to the agreement, particularly the Europeans soundly rejected the legality of the move and refused to support the re-imposed sanctions. China and Russia went along with the Europeans and Iran.

The lack of solidarity with the US on the JCPOA is another case where the Europeans have acted in their own way and their own interests in dealing with a traditional and long time ally. These days, many aspects of the “special relationship” seem to be water under the bridge in light of the nationalistic, “America First” policies of the Trump administration.

  1. Europe and NATO’s Article 5

In 1945 Nazi fascism has just been defeated and most of Europe was in ashes. No sooner had one threat been removed than another one sprang up. The Soviet Union and America faced off in what was to become known as the Cold War. Russia had imposed its own brand of communism on Eastern Europe and this block of states stood behind what Winston Churchill called an “iron curtain.”

To counter the Soviet takeover of Eastern Europe and the threat of further Soviet expansion, 12 countries banded together in 1949 to form the North Atlantic Treaty Organization (NATO). The purpose for their association was collective defense as outlined in Article 5 of the treaty signed in Washington. Simply put an attack on one country or its representatives or interests would be considered an attack on all, and all would have to respond. The Soviets came up with their own version of NATO six years later when they established the Warsaw Pact in 1955. Collective defense as outlined in Article 5 was not invoked until 2001 when the World Trade Center and the Pentagon were attacked by Saudi terrorists using hijacked airliners.

For more than 70 years the alliance has held firm. What is distressing is a shift in attitudes across Europe. A 2020 Pew Research Center found that 50% said that their country should not honor Article 5 if another member country were attacked by Russia. Only 38% said that their country should abide by their Article 5 commitment. Despite this, the report found that Europeans generally had a positive impression of NATO.

There has been talk of a European Army to replace NATO. Harsh criticism was leveled against NATO by French President Emmanuel Macron who, in 2019, called the organization “brain dead.”

Other leaders like Angela Merkel who stated that there is still value for the Europeans in NATO participation. This comes on the back of constant harping by US President Donald Trump for European allies to increase their defense spending.

After 70 years, Europeans have mixed feelings about the function and existence of NATO and about honoring their Article 5 obligations. How things would change in the face of some unambiguous Russian aggression in the near future remains to be seen.

Europe Sees Its Own Self Interest in Supporting America and its Allies.

 In at least two major ways areas, i.e. participation in in NATO and participation in the Indo-Pacific strategy, Europe has taken the pro-US, pro West strategy that would be expected of it.

Europe and NATO

The evaluation by NATO of its own performance over 70 years differs from the Pew Research Report in that NATO not only sees itself in favorable light, but also sees itself as having achievements of note during its first 70 years.

Seventy years ago, NATO’s founding treaty was signed in Washington D.C. Today, our Alliance is the strongest in history, guaranteeing the freedom of our almost one billion citizens, the security of our territory, and the protection of our values, including democracy, individual liberty, human rights, and the rule of law. We reaffirm the enduring transatlantic bond between Europe and North America, our adherence to the purposes and principles of the Charter of the United Nations, and our bedrock commitment enshrined in Article 5 of the Washington Treaty that an attack against one Ally should be considered an attack against us all. We are determined to improve the balance of sharing the costs and responsibilities of our indivisible security. 
(NATO Statement on the occasion of NATO’s 70th Anniversary).

The threat of Russian aggression for many NATO members is as real as it was in 1949. This has brought new members and new associations recently, particularly with the Nordic nations that live under the shadow of the Russian bear. The same goes for the Baltic republics of Latvia Lithuania and Estonia. Among themselves Nordic nations have banded together for military cooperation in logistics and procurement and inter-operability.

As noted in the last line of the NATO statement the countries involved are aware of their cost-sharing obligations even without the constant reminders, bordering on harassment, made by US President Donald Trump.

  1. Europeans and the Indo Pacific

As late there has been a pivot toward the US Indo-Pacific strategy by the Europeans and a distancing themselves from China. Both France and Germany have begun see their interests lying not just in their local area, but half a world away in the vast Indo-Pacific region.

In particular, Germany sets the example and aligns with the US and regional nations including Japan and Korea in calling for an open and free Indo-Pacific.

 Europe Sides With China

Europe has many common interests with China and has acted accordingly. Europeans and Chinese access each other’s markets, and Germany, for example, has had a long and profitable economic relationship with the PRC, particularly in the area of automobile manufacturing. Europe also stands to benefit by both the overland and maritime branches of China’s Belt and Road scheme.

As noted above, France, Germany, the UK, and the EU have stood firm with China and Russia regarding the JCPOA, or Iran nuclear deal. This has been even in the face of strong pressure from the Trump administration which unilaterally withdrew from the agreement in 2018.

On August 14, 2020, the UN Security Council failed to support the US move to extend the arms embargo against Iran. US traditional allies (the E3) Germany, France and the UK abstained. This was a stunning defeat for the US and its policy of maximum pressure against Iran. The Trump administration pursues a policy of “America First” and distains globalization and the value of international organizations.

As noted earlier, President Trump himself harasses the Europeans publicly about their financial obligations to NATO in addition to his expressed distain for diplomacy and international cooperation. So it should be no wonder that when the US wants the E3 to fall in line with its Iran policy at the United Nations that the Europeans sit on their hands. 

In fact, it might be in the best interest of the region and the world if the Iran arms embargo were continued, but a bullying form of leadership (that threatens sanctions even on its own allies) can only result in quiet resentment that shows itself in a lack of support and solidarity when support support and solidarity are called for.

Europe and China have acknowledged interests in both the global economy and in dealing with climate change. These common interests continue despite the Trump administration’s withdrawal from the Paris Agreement and its strident America First campaign. These common interests can be leveraged by China to maintain some of its “soft power appeal” seriously damaged by the Hong Kong and human rights issues.

Where Europe Does Not Side With China

Europe going its own way with regard to China is pretty much the top story of mid-to-late 2020. It seems that the romance with China, if there ever was one, is rapidly fading for the Europeans.

Many of the complaints that the Europeans have about China are the same complaints that the Americans have. However, as we have seen, this does not immediately make them allied in a common opposition to China.

Europe’s complaints with China leading to a disillusion with the PRC focus on human rights and China’s adoption of the national security law in Hong Kong and the situation with China’s Uyghur minority in Xinjiang. China has not made its case on the international stage to support its actions in Hong Kong, and has been branded as destroying or not living up to the promises it made regarding One Country Two Systems when Hong Kong returned to Chinese control in 1997.

China’s Massive Failure to Communicate

China has not responded to criticism of its actions to restore and maintain order in Hong Kong.

It could have emphasized that it relied on the government of the Hong Kong SAR to handle the crisis and did not send in the People’s Liberation Army. Instead it chose to focus on its opposition to any kind of independence or secession which was seen as the real threat by Beijing.

This lack of defense of its own position lead the PRC to be seen and labeled as an oppressor of Hong Kong democracy, and a destroyer of the 1997 agreement. 

The fact that local council elections were held at the time of the protests and that anti-Beijing candidates swept the election, and the election was let stand by the government has not been fully reported as an example of Hong Kong style democracy at work.

Coupled with this is China’s handling of its Uyghur minority in Xinjiang. China has never really explained clearly what the situation is in Xinjiang and what course of action it is pursuing with this minority

By treating both Hong Kong and the Uyghur situation as internal affairs it has let itself be portrayed as an oppressor and human rights violator worldwide. . China’s lack of an effective and believable explanation has led these perceptions to be seen as indisputable fact.

This massive failure by the PRC to communicate its side of the story has surely been a contributing factor in European disillusionment with China after a long period of productive engagement.

A Lack of Level Playing Field and the Indo-Pacific

The second major point of contention with China among Europeans is the concept of the “level playing field.” The perception is that European companies have a tougher time competing with Chinese entities because of government support which gives the Chinese side an unfair advantage. Add to this the accusation of forced technology transfer and you have some disgruntled trading partners and investors.

The human rights issue coupled with the lack of level playing field adds to the European’s disillusionment with China.

China’s claims and actions in the South China Sea adds another layer to the mix. As a result the Europeans are beginning to take an interest in the Indo-Pacific region and the US policy in the Indo- Pacific. While the Europeans are not ready to join Australia and the US in an alliance, they are pivoting to the idea that an “open and free Indo-Pacific” is in their self-interest. France began this shift and now Germany, long aligned with China at least economically, has began its own pivot.

Conclusion: Opportunities for China in an Evolving Geopolitical Order

China rising should be welcomed around the world; the Sick Man of Asia has become the Prosperous Man of Asia and is in a position to share its vision of the new world order with competitors and friends alike. Yet China’s actions, whether domestically or internationally are viewed around the world with suspicion.

The Belt and Road initiative which has the potential to bring prosperity to an incredible number of people in many regions around the world is viewed with suspicion at best, and its achievements are ignored.

China has the right to pursue Xi Jinping’s vision of a moderately prosperous society by mid-century, but it also needs to win friends and influence people along the way. Certainly, in the case of Europe, China should have trading partners willing to participate in the New Silk Road and prosper therefrom.

China needs to do a serious “self criticism” and find out what it has done and is doing to alienate so many potential allies and friends around the world. Soft power that does not make friends and create a balance among nations is not any power at all.

The United States, The People’s Republic of China, and Europe should be able to find areas of cooperation and coordination while at the same time remaining competitors and pursuing their own self-interests. Friends? Enemies? Partners? Competitors? Each bloc must decide what is best for its people and best for the greater global community of nations.

Photo: Paul Hudson via flickr

 

 

 

 

 

 

Europe Between The US and China.

                      by Philippe Valdois RSA

When asked about Europe’s position regarding the US-China confrontation, more questions than answers came to my mind. Can we see a consensus emerging, and as multilateral institutions and rules are coming under attack around the world, will it be possible for European countries to tune up their violins? Another major issue concerns the fear of coercion by superpowers. It could divide, or unite European countries. And what about the fear of war? Considering how complex the nature of this confrontation was, this essay would quickly become a review of sorts calling out for the opinion of a number of experts, in economics, in finances, in AI, in IT, in security, in diplomacy or in the military. There is however one central issue rarely debated as it should be, the digital economy, that I would like to introduce first as example. If we hear Washington criticizing China under the guise of protecting national security, the trade battle is in fact more about who will control the digital economy. 

I will then leave the other issues to be sorted out by experts and examine instead from a larger perspective how fear and incertitudes are amplified on various fronts, for political or economical gains. This might help us understand better how the EU could develop strategies aimed at restoring multilateral alliances and reestablish a better relation of trust with its trade partners, in a world where economic interdependency prevails, regardless of the numerous attacks on the multilateral system I mentioned previously. There isn’t any unique solution to this set of challenges and it is difficult to be optimistic. The European Union, like the ASEAN, is promoting multilateralism and integration, but as such is now facing an existential threat. The Covid-19 has exposed divisions inside those institutions and has offered an opportunity for the US and, beyond politicians’ words and slogans, China, to erode cohesion. The US-China confrontation will make it even more difficult for the EU to maintain a semblance of neutrality. 

Fear of War

The greatest fear of all is the threat of war. I do not subscribe to the theory of the Thucydides Trap. However, looking back at the Soviet-American Cold War that took place between 1962 and 1979, there is no doubt in my mind that the confrontation between China and the U.S. now taking place shows all the attributes of a cold war. If no proxy wars are being waged and if the barbs traded between Washington and Beijing often turn into a debate on the merits of multilateralism, there is not one day when the media do not mention acts of espionage, coercitive mesures taken to ensure that allies will follow in step as economic actions are taken, or false statements used as propaganda tools. 

Willis Sparks offered on Sept. 21, 2020 an eight days timeline under the evocative title US-China: Temperature rising. He mentioned a wide range of initiatives, sanctions and warnings related to and not limited to trade, economics and security. One case even involved the Chinese Union Development Group and a project conducted in Cambodia and associated with Beijing’s Belt and Road project. 

The US administration is not shy in naming the enemy, and it is China. War games and simulations usually involve an unnamed enemy. This is no more the case. Both US Secretary of State Mike Pompeo and other high-profile members of the US administration have use harsh words directed at China. In fact, naming the enemy while condemning the country’s regime and its strategic ambitions might be one thing, but it is irresponsible in the context of a potential military confrontation with the second economy in the world to call for a change of regime.

Secretary of Defence Mark Esper reiterated Pompeo’s narrative in his speech at RAND Corporation’s Los Angeles office on Sept. 16, 2020. 

China, for example, is exerting its malign influence through its ‘One-Belt, One-Road’ Initiative. This campaign has left weaker nations with crushing debt, forcing them to take their economic relief at the expense of their sovereignty. Additionally, Beijing’s aggression and disregard of its commitments in the South and East China Seas – such as the sinking of a Vietnamese vessel and escorting of Chinese fishing fleets into the exclusive economic zones of Indonesia and the Philippines – are further examples of the Communist Party’s attempts to reshape and undermine the international order that has benefitted nations, large and small. 

He was even more blunt two days later when, on Sept. 18, 2020, according to USNI News he said that “the Navy needed to ensure it was investing in its people, their training and their families so they could be ready to deter or fight China.”

We are reminded of President George W. Bush’s famous words pronounced before the Congress 9 days after the 9/11 terrorist attacks: “Every nation, in every region, now has a decision to make. Either you are with us, or you are with the terrorists.” The current US administration made it clear that its allies would have to choose camps. As Washington multiplies its contacts with Taiwan and tensions intensify, The conduct by France, the United Kingdom and other US allies of freedom of navigation operations, in both the Southern China Sea and the Taiwan Strait, could be construed by Beijing as strong acts of provocation. 

Fear of coercion

Coercion can take milder forms but still create serious dilemmas for the EU as it did with the Iran issue. The US expects European countries to apply its economic sanctions against China. The EU has to walk a tight rope, not exacerbating the tensions or exposing itself to retaliation from China or a mercurial US. Australia, as a geographic neighbor and major trade partner of China, is more exposed than the EU and can offer Bruxelles an example of what the EU could expect in terms of retaliations from China if it was to engage in a war of words with Beijing or align itself with Washington in criticizing China for its response to the pandemic.

Trade could suffer but we see similar issues arising in the supply chains in the IT sector. It is clear that most attacks directed at China are for domestic consumption and that branding has been a constant in Donald Trump’s arsenal. As Brett O’Donnell, a veteran debate coach, commented:

“What makes the President difficult to debate is that he does stuff through branding. He doesn’t make these long-drawn out substantive arguments. … He just sort of brands you to make a point and then hopes it will be filled in after the fact,”

This trait applies to all his dealings, including with foreign dignitaries. Regarding the IT sector, we can see Donald Trump branding Huawei among other Chinese entities as “thieves,” or “a threat to the world,” but this conflict is not about fairness but about who will control the future, and more importantly for the US President, to offer the image of China as an unfair trade partner to show potential voters that he is protecting the US against Chinese aggression. Here too, The EU is in a position of spectator since out of the seven digital technology giants, the FAAAM (Facebook, Amazon, Apple, Alphabet and Microsoft), Tencent and Alibaba, none is European. The bloc’s historical defense of privacy in the form of strict rules and penalties makes it wary of any attempts by the Chinese and US governments to collect personal information, directly or indirectly, resulting, for example in the rejection of the EU-US data transfer agreement. 

I mentioned various characteristics of what could be described as a cold war. It is not difficult to conclude that public opinion is already influenced by lies, misleading informations and propaganda. In China, however, the support for the government and distrust towards the US did not need much nudging from the regime to rise in response to Washington’s virulent anti-China campaign, at least when attributing the responsibility of the propagation and even the “creation” of the new coronavirus virus to China. Part of the support from Chinese citizens was based on the perception that Beijing has done a good job in bringing the pandemic under control. The numbers made apparent to them the fact that the US administration campaign had for main objective to deflect domestic public opinion from the White House failures. A recent Pew Research pol found that 78% of Americans thought that the “Chinese government’s initial handling of the coronavirus in Wuhan is a great deal/a fair amount to blame for the global spread of the virus.” It is to be noted that the level of satisfaction of Chinese citizens for their national leaders is higher than for the local ones, which shows that if nationalist propaganda plays a great part in shaping opinion, the average citizen was able to understand where most of the blame lied.

It is to be noted that if the US negative view of China appears extreme regarding China’s response to the Covid-19, most industrialized countries, including in the EU, share this criticism. However, in Negative views of both U.S. and China abound across advanced economies amid COVID-19, Laura Silver, Kat Devlin and Christine Huang analyze the results of a survey of 14 advanced countries that show a lack of confidence in both China and the US. Here are their conclusions:

  1. Most people have unfavorable views of both China and the U.S. – but more see the U.S. favorably.
  2. Most people rate China more positively than the U.S. in its handling of the coronavirus pandemic.
  3. Few have confidence in either country’s president – but across much of Western Europe, more have confidence in China’s Xi Jinping.
  4. More see China as the world’s leading economic power than the U.S.

We might be led to believe that China is better positioned than the US under Trump to lead the efforts in reinforcing a multilateral world system. However, other factors are influencing European’s opinion. 

I mentioned Australia and a case of economical retaliation by Beijing in response to Canberra criticizing its policies. China’s authoritarian regime is more and more denounced for its heavy-handed initiatives. In Europe and the New Sino-American Cold War Nicolas Regaud reminds us that the EU has designated in 2019 China as a “rival systémique,” ou systemic rival. Additionally, if the EU is not willing to budge on human rights issues, Nicolas Regaud explains that:

Brussels considers that deep disagreements with Beijing should not prevent it from cooperating with China on global issues such as climate change, refusing the zero-sum game that seems to prevail in Washington. 

However, and here we go back to the question of cohesion among the EU members, Axios revealed on October 6, 2020, that “A high-ranking German official suppressed a sensitive intelligence report in 2018 on China’s growing influence in Germany out of fear it would damage business ties with China.” Bethany Allen-Ebrahimian, the writer and expert on China concludes that “German business interests, as well as the country’s top economics official Peter Altmaier, have thus tended to downplay China’s growing human rights violations and security challenges.” This goes against the official position of the EU regarding human rights and shows that, like with the decisions made by individual states regarding the Covid-19, we can expect a lack of cohesion in the bloc. 

Conclusion

We have seen that the confrontation between the US and China is susceptible to generate much damage. Europe cannot align with one of the two superpowers without attracting retaliation by the other. It cannot ignore its own system of values to give way to pragmatism, given a rising authoritarianism and intensifying repression not seen in China since Mao Tzsetung. I suggested that Europe was in a similar situation as the ASEAN with dangerous and exigent neighbors. In answer to the simple question: what can Europe do? I would offer the following perspective.

It is on purpose that I chose to focus this essay on the idea of fear, recognizing that world leaders might be as much in the dark as any average citizen about the future. The growing rejection of “professional” politicians in Europe and elsewhere by the average citizens can be seen in part as the understanding that our leaders don’t know what they are doing. Being on a rudder-less boat on a rough sea with a blind captain can be frightening and the fear of the unknown might be what characterizes the best today’szeitgeist. Leaders might actually be the ones most afraid of the unknown and this again would explain the rise of authoritarianism and ultra-conservatism both in China and the US. Europe, thanks to its diversity is in a unique position to embrace the unknown as described by Frederick Kempe in U.S.-China confrontation is like nothing we’ve seen before. He says about the “epochal enormity” of what’s unfolding:

…It is also new because the U.S. and China, after four decades of wishful collaboration, are now locked in a contest that could define our times. It isn’t a struggle, as the hyperbole would have it, over “world domination,” which no country has ever achieved. But it could have significant impact on “world determination,” influencing whether democracy or autocracy, market capitalism or state capitalism, are the flavors of the future.

It is a unique period as well in that this unfolding contest coincides with the Fourth Industrial Revolution and an era of unprecedented technological change driven by big data, artificial intelligence, quantum computing, bioengineering and so much more.

The European Union will have to adapt to this rapidly evolving reality and be proactive in encouraging reforms in international organizations such as the WTO and the WHO. Facing the rapid evolution of technology, it is vital that codes of conduct and rules be decided if only to alleviate the malaise of the population. There is no better way to encourage cooperation and promote a consensus on global issues such as health and climate change among countries than to promote education and restore the trust in science. I would mention as example space exploration and the Artemis Accords.

What about the November US presidential election? I am also pessimistic. If Joe Biden is elected, he will have to deal with two different agendas, implementing expected reforms in a context of pandemics while dealing with trade and security issues, including those involving China, and repairing the damage done during Trump’s mandate, by restoring trust with US allies, etc. Compromises might help him alleviate criticism from the other side, and this would include maintaining sanctions and adopting a tough position towards Beijing.

Photo: Thijs ter Haar via flickr

US Secretary of State Mike Pompeo–America’s Point Man on China Policy.

“President Reagan said that he dealt with the Soviet Union on the basis of ‘trust but verify.’When it comes to the CCP, I say we must distrust and verify.”

Secretary of State Mike Pompeo July 23, 2020 .

It has become abundantly clear that Donald Trump’s point man on China is Secretary of State Mike Pompeo. In his July 23, 2020 speech at the Nixon Library in Simi Valley California he left no doubt about that.

In the speech Mr. Pompeo outlined the Chinese threat (as seen by the US)  and called for a new alliance against China. He spoke of the United Nations and the G20 and others G7 and NATO standing with the US to deal with China.

The whole speech set out the treats from the Communist Party of China and from the Chinese nation itself. Such cold war rhetoric has not been heard for a long time, and the speech really did lay down the gauntlet.

Observers suggest that the rhetoric will continue and even intensify right up until the 2020 presidential election. One reason for the Trump administration’s belligerence toward China is to ensure the re-election of Donald Trump.

So who is Mike Pompeo anyway?  Mr. Pompeo was born in Orange County California. He attended the United States Military Academy at West Point graduating first in his class. After his military duty finished, he entered Harvard University Law School and graduated with a JD degree. After Harvard he entered private business where he teamed up with former classmates to form an aircraft parts business. In 2011 he was elected to the US congress as a Republican Representative for Kansas and where he served from 2011 to 2017. In 2017 he was appointed as Director of the Central Intelligence Agency held that job for a year before being nominated as Secretary of State under President Donald Trump.

Mr. Pompeo, in the Reagan Library speech on July 23, didn’t echo President Ronald Reagan’s words in 1983 calling the Soviet Union an “evil empire” by calling China an “evil empire”, but Pompeo’s meaning, was clear enough about what he considered the Chinese threat.

Worth noting is the fact that Mr. Pompeo in his July 23 speech did not offer any way forward regarding better relations between the US and China. No, China is a menace to world peace and to American democracy, and we must  (all) stand up to China. No more ” Mr. Nice Guy” American hoping for a liberal China to emerge. Time to stand firm.

So the face of the “new Cold War” and the pushback on China is US Secretary of State Mike Pompeo. One could argue that he is the right man for the job. A Democratic win in November would tone down a lot of the rhetoric toward China, but American actions under a Democratic president might not be so far different regarding China in many areas.

What do you think? Contact us and let us know your opinion.

Secretary Pompeo’s July 23rd Speech at the Nixon Library.

Photo: US Dept. of State via flickr

Say Goodbye To Your Cab Driver–RoboTaxi is Just About Here.

                        by David Parmer / Tokyo

Pretty soon chatting with a friendly and knowledgeable taxi driver may be a thing of the past. No, he’s not gone yet, but it is only a matter of time before you may see him in cook’s whites stir frying your favorite dish at a local restaurant. This will be thanks to the rise of the robotaxi or autonomous vehicle–a vehicle that has no need for a human driver. And they are coming. No, that’s not quite true: they are here already.

Many of us can remember the introduction of the first mobile telephones. Some people had them and they were a novelty. Then more and more people got them, and then, like magic, they were everywhere.

This same pattern is now being played out with the driverless vehicles or robotaxi. And while there are many self-driving car companies in the US, China is really the epicenter of the action and excitement in the application of this new technology. Several companies are partnering to move this technology forward and see its seamless introduction into society. These include:

  • WeRide– Now operating Guangzhou next to Hong Kong, the company is operating its driverless vehicles with a safety driver. They are using Alibaba’s Autonavi application. We Ride has gotten an $18million investment from Renault, Nissan, Mitsubishi in 2018. In July 2020 the company got the first license for driverless vehicles in China.
  • AutoX–Partnering with Alibaba and Fiat-Chrysler, AutoX is Fiat Chrysler’s “in” to the Chinese market. In spring 2020 a test of AutoX vehicles was run in Shanghai’s Jading area with the target of introducing an eventual 100 test vehicles. Customers can book a ride on AutoX by using the AutoNavi application from Alibaba.
  • Apollo Robotaxi–Partnered with China’s search giant, Baidu, Apollo started triala in Changsha, Hunan Province in April 2020 using its own DUTAXI app. Besides Baidu, partners include SIAC Motors, Geely, Alibaba and Tencent.
  • DiDi Chuxing–China’s major ride-hailing company has started testing in Shanghai’s Jading region with Level 4 cars with safety drivers as required by Chinese law. Their target is 1 million self-driving vehicles by 2030.
  • Pony.ai–Founded in 2016 in California, Pony.ai started China testing of its vehicles in 2018 in Guangzhou. In 2019 they partnered with Hyundai and GAC. They also received a whopping $400 million investment from Japan’s Toyota Motors.

In the not-too-distant future China may lead the world in the area of autonomous vehicles. Certainly it is off to a good start. When driverless vehicles have moved to the total autonomy of Level 5, (no safety driver), then the next logical step will be driverless private vehicles for those who can afford them.

So the next time you take a taxi, enjoy your conversation with the driver–there is a good chance you will not be seeing him again in the near future.

Photo: International Labor Organization via flickr