World looked forwardpassionately to achieve a long awaited break from the conflicts brewing up in Middle East (ME) as well as in Central Asia. A glimmer of hope kindled after withdrawal of US forces from Iraq,
claiming to have achieved its objectives, and draw down from Afghanistan, already in full swing where NATO operates in unison for over a decade. Strange enough, metaphorically the winding down war intensity appears to have been negatively manipulated by Ares, the god of violence, to hype quietly the hostilities or the threat of them in a new theatre, called South China Sea (SCS). Rhetoric rumbles wide and far that the storm is building up.
Some scholars appear determined to prove that talk of impending conflict in Asia-Pacific region amounts to expecting tempest in a tea-cup. Despite hostile gestures, other analysts tend to connect huge economic stakes and finding them significant, they rule out conflict. Sterling (2012) thinks, ‘According to a Japanese business group, 30,000 firms operate in China. Japan has investments there of $85 billion….For their part, the Japanese don’t want to jeopardise access to a market of 1.3 billion people.’ The optimism soon vanishes, however, once some warships and submarines pop up from the ‘tea-cup’ and are observed conspicuously indulging in hostile manoeuvres. Ungar (2012) remarked about the ensuing tension, ‘The Philippines and Vietnam have already protested the Chinese action, but the Chinese Global Times responded that China will not back down on sovereignty issues….’
Ongoing territorial tiff is likely to suck in militarily not only SCS peripheral countries like China, Taiwan, Vietnam, Philippines, Singapore, Indonesia, Brunei, Thailand and Malaysia but also some distant powers like India, Japan, and Australia. US gets soon bracketed by implications because of security-guarantee obligations, it owes to Japan and Philippines, besides being recognised as a lead power to keep the Asian allies’ mercury down. Even Australia and Canada, its traditional allies are cautious to encourage or pursue a posture that would stoke diplomatic tension. Manicom (2012) comments, ‘Ottawa has made no secret of its preference to focus this engagement (with China) on economic issues as part of a strategy to diversify away from US markets.’ Perceiving these comments within the alliance, apparent ambivalence about SCS paradox by the parties ought to be seen as profuse pragmatism.
Conflict Feasibility and Limitation
Under the environments of globalised politics, the conflicts have the tragic character to expand, particularly when more than one direct party in the arena happen to be the powerful titans with heavy stakes. The chemistry of recent conflicts testifies at least two hypotheses.
First, given the prowess, it has become far more feasible to initiate a conflict by the powers, which enjoy global military reach, albeit at an exorbitant cost in men and material. In classical sense, no other power has demonstrated such versatility except NATO and recently France in Mali to sustain trans-continental operations of war. Chinese strategic reach within the sphere of South and ECS is a reality now that littoral states would find hard to rebuff. Rudd (2012) is of the view, ‘Chinese strategic capabilities, the force structure of its military together with its emerging doctrine are aimed at supporting China’s core interests….’
Second, conflicts are becoming increasingly difficult to wrap up because of the ability of lesser powers to outsource a conflict with minimal costs but stupendous gains to keep the adversaries embroiled in a conflict, no matter how potent militarily they may be. What also lacks in the entire appreciation of the SCS crumbling security paradigm is that Chinese views and diplomacy, even if not apparently palatable, are finding scant elaboration. There is a contextual need to prefer exploratory research over descriptive one. The desirability cannot be over-emphasised even if the study culminates ultimately as a balanced combination of co-relational, descriptive and exploratory modes that tend to overlap because the tangible determinants in this narrative do not predominate. Therefore critical inquiry would enable us to raise and answer some pertinent questions.
Geography and Disputes
Geological and geopolitical contours of the arena are somewhat intricate. SCS lies to the
south of China and Taiwan, west of Philippines, northwest of Sabah/Sarawak (Malaysia) and Brunei, north of Indonesia, northeast of Malay Peninsula (Malaysia) and Singapore and east of Vietnam. It has about 250 small islands. Dramatic irony plays at the peak when all the coastal states of SCS appear determined to claim respective sovereignty and get increasingly bitter when any of them is denied approach to any feature by the other party. As a consequence there are multi-layered disputes. However, China claims the entire SCS space through famous (others possibly view it as mischievous) nine-dotted line. It appears like a loft of rope by a cowboy from Chinese coast that almost hugs the entire SCS coast.
Vectoring Security through Economic and Geopolitical Significance
Until recently it received scant attention and the SCS littorals security woes were labelled perhaps as their self-created tomfoolery. However, dawn of third millennium brought SCS into spotlight. According to initial assessment, SCS region has 8 billion barrels of proven oil reserves with 28 billion barrel of possible reserves. As regards natural gas, it has 266 trillion cubic feet. The emergence of another ‘Middle East’ in Asia-Pacific is certainly a bonanza, not only SCS countries would crave for but the entire world because the promise of alternative fuels still remains elusive. Rather lavish territorial claims in SCS by China to secure future oil giants, under the obtaining scenario means a very complex tangle in the region and beyond, particularly when each actor would be weighing options and attempting to assess others’ degree of finesse in the realm of diplomacy.
Another factor that has bolstered the strategic significance of SCS is the enormous volume of cargo that moves through it. Year 2008 statistics show that 58 percent of the world total shipping, worth $ 435 billion went through Malacca and other straits, destined for or emanating from Asia-Pacific region (Oegroseno 2012). Recently, fast emerging vulnerability of the sea lanes, particularly in the vicinity of choke points where maritime security environments have deteriorated tremendously, has lent SCS an added dimension. Lyzhenkov (2012, p. 4), taking stock of transnational threats did not miss to underscore the need to, ‘enhancing containers security/supply chain security’. On the contrary, impending conflicts or threat of them would deliver a severe blow to operability through the vulnerable sea lanes when hostile state(s) would attempt to interdict energy supplies. SCS makes a critical area of international concern.
SCS Conflict Dynamics
Diplomacy and Posturing Antagonism
A cobweb of conflicting dynamics haunts SCS theatre. Conduct of diplomacy by the states that are party to the dispute and others who legitimise their role under available version of International Law, suggest that all analyses have to conform to different bench marks. An impression that SCS conundrum is being efficiently fed by proxies, paradoxes and profuse pragmatism simultaneously is quite relevant. The explicit stance of every actor has conciliatory tones but some policy manoeuvres made by them appear confrontational. Similarly the bracketing of US, Japan, Australia and India, in sympathy with SCS littorals’ antagonism against China tends to fall apart when the huge stakes of these major powers are seen interdependent as long as all remain focused on the priority objectives of boosting and sustaining their economic potentials and in the process fostering the world peace. Paal (2012) thinks, ‘Strategic objective of United States in Asia is to manage China’s rise.’ Here the clarity of emphasis resides in ‘management’ and not confrontation or tit-for-tat sparring. US contemplated shift to place strategic pivot in Asia-Pacific must have come as a knee-jerk decision for the Chinese, alerting them to draw some obvious deductions, not in sync with their national interests. It was ostensibly flung like a bolt in the international arena. Not denying US, its prerogative to adjust the forces’ strategic posture, had the declaration been preceded by consultations with the main stake holders, it would have generated lesser controversy than it did, particularly when their economies are extensively developed and mutually engaging.
US plan to deploy a sizeable Marines force in Australia, though at considerable distance from China and pushing 60 percent warships into SCS by 2020 would logically force Chinese to assume that the stage is being set to replay World War II Pacific Campaign in reverse order. Matloff (1973, p. 506) noted, ‘By mid 1943…. Major Allied objective was the control of South China Sea and a foothold on the coast of China so as to sever Japanese lines of communications southward and to establish bases from which Japan could…, if necessary, invaded.’ Chinese fear would have touched sky when the emerging pattern of US rebalancing of Asia-Pacific ‘Pivot’ unilaterally is transposed in 21st century, requiring China to substitute Japan. Conversely if there are really no hidden barbs as both need to reassure each other, the two powers can pull on amicably disregard to the fact that Chinese ships and submarines swarm around US West Coast or the US Marines are cruising in SCS with full array of deadly war arsenals. To achieve such a symbiotic equation which is so vital for the fast fragmenting world, some snares would naturally test the diplomats’ wizardry from both sides.
Alliances and Alignments versus Regional Security Sensibilities
Search for new alliances and cooperating partners with compatible geopolitical synergy is an ongoing phenomenon of military history. However, certain moves make others scary and lead to polarisation. Chinese suspicion stands strengthened when US, through strategic alliance with India, is found inclined to inspire it for embracing bigger role in Asia-Pacific maritime security. November 2012 dialogues between US, Japan and India, observed Indian ‘Daily News’, prove that it is not only the forum to address peace time issues but, ‘…leveraging their strengths to shape the Asia-Pacific architecture’, adding further, ‘India sought clarifications from the US about its so called Asia-Pivot Strategy which envisages roping in New Delhi as the lynchpin of security in the region’. Embracing Asia-Pacific role would sound as Indian prerogative; being a potent emerging power in Indian Ocean. However, India might find it hard to encounter China in Pacific even if its military capability is bolstered by US because of Chinese projected forces preponderance and superior strategic orientation in SCS. However, there are vast areas of convergence among US and India. Hence, India has emerged as US’s natural ally. Blumenthal (2007, p. 308) opines, ‘The United States thus has a fundamental interest in assisting India’s rise as a prosperous democracy that contributes to international security. More immediately United States would like to see India play the role of counterweight on China’s western flank (with Japan doing the same in the east).’ The emerging scenario would certainly be perceived by Chinese strategic defence-wizards as pincer in the offing in Asia-Pacific region to clinch China. Some experts are also sceptical about India’s role in Asia-Pacific, fearing that US efforts to march India against China may be a matter of serious conjecture as Indians are known to pursue independent approach to the global issues. Sibal (2012) is of the view, ‘Being a pro-American is not a stigma any longer whether in politics or business… though not at the cost of becoming subservient….’ China has, however, possibly measured the depth of Indo-US strategic alliance and has not felt jittery about it, leaving window of reconciliation open with India for resolution of its border disputes.
Sino, Japan and Vietnam’s Threat Orientation
China and Japan are at odds historically and old wounds among them appear too deep to heel. Though there have been confrontations recently among them, Japan perceives Chinese force projections worrisome but manageable. Holms (2012) asserts that China would employ ‘rope-a-dope strategy’ or ‘shadow boxing’ with fellow Asian powers in the event of crises in Asia-Pacific region and not meet adversaries in direct fleet-to-fleet engagements. Quoting Admiral Yoji Koda, he observed, ‘Chinese leadership can keep the enforcement ships on station near to Senkaku/Diaoyu Island, send PLA Navy task force through…as matter of routine and otherwise overtax finite Japanese leadership and electorate overtime. Ultimately Tokyo may throw in the towel ….’ Conversely Japan seems aware that option of peaceful settlement of dispute would only sell better at an opportune moment on the dialogue table if Japan manages to convince China that East or SCS space would never be exclusive to her but rather inclusive to some or all the littorals. Augmenting Philippines high sea capability by providing her fast manoeuvring gun- boats and scrambling fighter jet recently after an alleged threat of violation by Chinese air craft, were possibly the acts well considered not only by Japan but its allies as well.
The conflict vulnerability in SCS and ECS between China and others vary from low to high probability. Some analysts (Ciorciari & Chen 2012, p. 62) maintain, ‘The Sino-Vietnamese feud is part of a tangled web of competing claims to the Paracel and Spratly chains and the surrounding South China Sea.’ Vietnam is likely to meet incessant Chinese naval provocations at forward foot, assuming that China’s loss of face among international community would be greater after attacking a small neighbour’s navy and China has essentially bigger stakes for sustaining peace as economies are always conflict-shy. China, considering Vietnam’s mischief unbearable may be inclined to drub its navy in short and intense engagements, hoping it would be a well defined deterrent for others. China and Vietnam navies appear to have toyed with access-denial strategy recently as a defensive manoeuvre that leads us to believe that both are maintaining naval alert unobtrusively.
China’s Blues and Opposing Manoeuvres
China does not omit noticing US encouraging gestures to Vietnam when, ‘Defence Secretary Leon Panetta visited a deep-water Vietnamese port near the contested South China Sea…, calling access to such harbours critical as the US shifts 60 percent of its warships to the Asia-Pacific by 2020 (Alexander 2012).’ Their protests are also the index of intense feelings raging through Chinese leadership and public alike when US is seen equipping Taiwan’s military with sophisticated weapons. China perceives Taiwan as an integral part of mainland China. Hence US role amounts to encourage Taiwan to shun Chinese overtures of re-unification and prime it as one of the link in, as some call it ‘string of pearls’ or ‘pearls’ necklace’ to consummate a sort of perfect siege around China. However, China is also carving elaborate pearl-nodes to ensure adversaries’ access-denial and exhaust them way short of their objectives in South and ECS. Chinese forays into Central Asia, South Asia, Middle East, Africa and Latin America; mainly to enhance its energy security is met with suspicion by US and her allies as their energy security stands vitally threatened by implications. Almost in parallel context, an observer had raised a question way back, asking, even if the stage setting of transition of hegemony from Anglo-Saxon-centric to Sino-centric world is accepted, remains a lot between the cup and the lips. Will the transition be peaceful or the two sides would end up locked in oil resources war as and when race for oil degenerates to oil stampede (Khan 2008, p.156)?
If China is accused of consuming all its markers, demarcating its possession through entire length and breadth of SCS, still the onus of responsibility to avert rather than initiate a conflict in SCS lies on US because the world hinges hope on US to undertake ‘fire-fight’ anywhere on the planet. Its suspicions that within a few decades, US may be challenged militarily by China are also well within US prerogative to hypothesise. However, US should evolve and attempt strategies away from use of force, preventing triggering of widespread conflagration, spinning out of control. In other words, as a RAND Review (Dobbins & Cliff 2012) suggests, US be well advised to meet such aims by creating a spectre of, ‘Mutual Assured Economic Destruction.’ In other words, US compulsion to remain an economic giant would further sharpen but it would deter any power to risk its economic destruction, as the threat of economic fiasco would outweigh the gains of lucrative military strategic objectives. An objective argument hints about US being alive to such an obligation, ‘Given the growing importance of the US-China relationship and Asia-Pacific more generally, to the global economy, the United States has a major interest in preventing anyone of the various disputes in the South China Sea from escalating militarily (Glaser 2012a, p. 1).’
Legal and Professional Dimensions
Forces Projection and Pretexts
Chinese show of force in SCS and harassing others, sometime searching them, has been a sore point. Their decision to establish a full-fledged Sansha Garrison on Paracel Islands in June 2012 means that another red rag has been flaunted to provoke the arena’s fury. Thus Philippines and Vietnam emphatically denounced such move though China perceives act of some countries contracting foreign oil and gas companies to commence oil exploration in SCS as far more serious breach of trust than establishing a garrison with symbolic connotations rather than operational one. An expert thinks, ‘The decision (of establishing Sansha Garrison) fundamentally challenges two key aspects of the conventional wisdom in Washington about China’s South China Sea strategy: that China’s assertive behaviour results from actions taken by the civil and military agencies independently of the central government and that China has been moderating its policies towards the South China Sea since 2009 (Mastro 2012).’
As regards legalities of claims over the SCS territories through historical documents, China is very well equipped with huge stock of evidence to support its plea since Yuan Dynasty period though it has not shown flare for international arbitration except from the Association of South East Asian Nations’ (ASEAN) platform. There is however, a hope for the remaining SCS states to advance their view point and press for territorial waters concessions because all of them have gone through alteration of boundaries and dynasties over the centuries. Having gained independence generally in 20th Century, some UN conventions and International Laws support their plea to the extent of being granted respective EEZs that at the moment are denied by China. When China has not ruled out negotiations, there is a scope of settlement, step by step through multiple approaches.
Responsibility and Policy paradigm
Shifting of US focus from Middle East to Asia-Pacific can be successful and draw no ire from China though the statement appears self-negating within. It would be successful, heralding an era of peace and reconciliation if the emphasis is about the quest for peace by all parties, particularly, China and US when the latter has lien over decision making of Vietnam and Philippines also, being an ally or potential ally. To do that, a paradox has to be eliminated. Glaser (2012b) comments, ‘China’s neighbours seek greater US economic, diplomatic and military involvement in the region as counter balance to Chinese growing power but at the same time every country in the region also desires a close relationship with Beijing.’ In other words, SCS littorals are pursuing double-stream foreign policy. One, to induce US that it should remain available for all out support, even military. Second, keep Chinese connection sacred and close to heart.
US is in better position to encourage them to develop thorough understanding of China and to work towards mutual recognition of merit of grievances and resolving them rather than turning to US for every thorn-prick. Another aspect which SCS countries have to watch against is the rise of nationalist sentiments for resolving the disputes. No wonders, Vietnam and lately, Philippines have managed to mobilize their youths, condemning China and obfuscating their own governance deficits but it has also propped Chinese youths’ frenzy as a repercussion. They openly question Deng Xiaoping’s policy of appeasing SCS neighbours who advised them to maintain sovereignty over SCS but circumvent all disputes for the sake of economic prosperity of China. Rachman (2012) comments favourably about Deng Xiaoping, ‘It was a brilliant strategy which ensured that China…rapid economic growth without significant international opposition.’ Chinese leadership’s aggressive posture in SCS may be, more often, a response to sooth their youths and middle class on finding narrow political space. At the same time China compensates its loss of international image with propriety of tones at diplomatic levels.
‘Go’ and ‘Shi’ Factor
It is a matter of conjecture whether Chinese stratagem has been understood. Lai (2012) emphasises that it would be possible only if US understood Chinese board game ‘Go’, the oldest, yet modern that is reflected in their philosophy. Interestingly Chinese entire range of philosophical twists are still nourished by ‘Go’ that is compatible and having firm roots in centuries old Sun Tzu’s classical ‘Shi’. The discussions in the Western world are predominantly about the narratives that are usually obvious and not on the wrapped philosophy from which the narratives emanate. Finkelstein (1999, p. 193) comments would give us the glimpse that he claims to have distilled from wide range of sources, ‘If one were to distil all of the statements of China’s national security objectives, both explicit and implicit, that have been publicly declared or adduced over the last few years they could be distilled to three simple words: sovereignty, modernity, and stability.’ From a western scholar’s point of view it sounds as an all encompassing remark but Chinese philosopher would differ about what he has distilled that relates to every aspiring sovereign state confronting challenges and also because it skips the interpretation through ‘Go’ and ‘Shi’ standards in Chinese context.
Chinese way of war and conduct of diplomacy even today is like water, denoting Sun Tzu and Lao Tzu’s ‘Shi’ (Lai 2012). Water ultimately finds a flow-path. Conversely, Western art of war and diplomacy flow from Greek traditions; chivalrous, agile like a boxer and have tendency to match force on force, seeking immediate result on the battlefield, assumed as chessboard, even at enormous cost in men and material.
Western diplomats found during early 70s US-China thaw that when the West spoke of events maturing in months and years, Chinese planned on span of dynasties. In other words, to push negotiations against the tide of time and expecting to pluck the success like a plum from dialogue table is dangerous. During Cold War era, America won over China against Soviet Union with patience and perseverance. What is relevant part of the argument here is to highlight a point that US and its allies may not be finding rhythm with China on the security issue of SCS and getting frustrated with her but for China, SCS may be a board game on which is being played ‘Go’ and ‘Shi’.
SCS security dilemma is not only complex but challenging. US and China emerge after evaluation from all angles of the calculus, the sole powers who would decide the destiny of SCS. However, the constructive role of other SCS border states cannot be relegated to lesser significance. The lesser powers in the region got to muster an increased sense of faith in multilateral dialogue option. Economic inter-dependability is emerging vital ground to shun war and violence as execrable acts. Spread of prosperity through economic interdependence would keep the world hostage to peace. That will remain a welcome proposition.
China, being militarily strong in SCS, draws obvious flak for coercing neighbours through its forward if not aggressive posture, driven by its weakness of domestic politics, an aspect the West does not always take into account. An analyst, who is more familiar with ‘Go’ and ‘Shi’, made very realistic remarks: Over the next decade or so, the Middle Kingdom’s future will hinge on the dynamic between the fear of revolution and the hope for political reform. The threat of revolution from below may push the elite to pursue incremental yet bold political reform. Should reform fail, however, revolt may well be the upshot. And the unfolding drama, wherever it leads, will undoubtedly have profound ramifications far beyond China’s borders (Li 2013, p. 47). Hence Chinese exercise to keep the courtyard in order may be leaning on SCS geopolitics as an instrument of effective appeasement, directed inwardly.
SCS littorals and others with heavy stakes in the arena have to avoid making it the pivot of geopolitics. Choong (2013) quotes a Chinese professor, raising very pertinent questions, ‘If China doesn`t have a Cold War mentality, why does it see the US as the main threat? If the US doesn`t have a Cold War mentality, why does it deploy so many troops in Asia? To obviate unwinding of plethora of irritants, sagacity points to an opportunity for both the arch actors to settle down, talk and build an edifice of peace that embraces South as well as ECS. Therefore, one would hinge huge hope on new leadership of China and the renewed leadership of United States of America to mobilise and commit their energies toward this end. ‘Shi’ and ‘Chess’ compatibility has to be explored as two-way responsibility and there is no other option.
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China’s Soft Power Diplomacy on North Korean Nuclear Crisis
For about the last two decades, North Korea’s nuclear weapon development program has become one of the major issues of concern to international community in general and Korean Peninsula in particular. Since the early 1980s, Pyongyang had begun undertaking its weapons of mass destruction (WMD) programs. North Korea also has conducted total five nuclear tests: October 9, 2006; May 25, 2009; February 12, 2013; January 6, 2016; and September 09, 2016. Following its historical progresses, North Korea apparently successfully tested its first intercontinental ballistic missiles (ICBMs) in July 2017.
As far as the global as well as regional security is concerned, the constant development process of North Korea’s nuclear weapons attaches immense attention with huge tensions to world’s global as well as regional powers, the United States, China, Russia, South Korea, and Japan. The involved actors especially the United States has urged for China’s support in dealing with North Korea’s nuclear crisis since the very beginning. Being a significant global as well as regional actor, China’s active role in resolving North Korea’s nuclear crisis through soft power diplomacy draws attention to the wider readers especially from the arena of international relations.
Given these developments, it is pertinent to examine China’s soft power diplomacy in dealing with North Korea’s nuclear crisis. China’s role in the Six-Party Talks on the North Korea nuclear crisis is one of the significant implications of China’s soft power diplomacy in Korean Peninsula. China has been playing a proactive role since 2003 in order to establish peace and stability in Korean Peninsula. The country has facilitated rounds of discussion among the members of the Six-Party Talks in order to dismantle North Korea’s nuclear program with the consent of involved actors, thereby, avoiding any kind of regional instability in Korean Peninsula.
The Shanghai Cooperation Organisation (CSO) is another multilateral forum where China has adopted its soft power diplomacy in resolving North Korean nuclear crisis. For instance, China asserted on dialogue and consultation for the peaceful resolution of North Korean nuclear crisis at the SCO annual summit held on June 11, 2018, in China’s coastal city of Qingdao, which is called Qingdao Declaration.
China’s diplomatic initiatives through its active mediation or mediation diplomacy, one of the significant aspects of China’s soft power diplomacy, in resolving the North Korean nuclear crisis is notable. The U.S.-North Korea talks in March 2003; trilateral dialogues consisting of the U.S. and the Democratic People’s Republic of Korea (DPRK) in April 2003; talks among Six Parties in February 2007; bilateral meeting between the then Chinese Premier Wen Jiabao and North Korean Chairman of the Workers’ Party, Kim Jong Il in October 2009; and Beijing-Pyongyang dialogue in August 27, 2010 facilitated by China demonstrate China’s soft diplomatic initiatives to dismantle North Korea’s nuclear programs; peacefully resolve the nuclear crisis; and ease tensions in Korean peninsula. In addition, Chinese government officials paid several official visits in Pyongyang in order to make progress in denuclearization process in Korean Peninsula.
Dialogue and negotiation rather than confrontation is a significant strategy of China’s soft power diplomacy in resolving North Korean nuclear crisis. Chinese Foreign Minister, Wang Yi, in this regard, stressed on the peaceful solution of North Korean nuclear standoff through dialogue. Besides, reiterating on the necessity of nuclear-free Korean Peninsula, Wang Yi, also emphasized on the consideration of North Korea’s security concerns and other concerns related to its nuclear programs to avoid any military action or the escalation of tensions in the Korean Peninsula. As per its policy, China strongly opposed to the decision of deploying the Terminal High Altitude Area Defense (THAAD) anti- missile defense system by the U.S. and South Korea in August 2017 and reiterated on dialogue and consultation.
However, now it is important to examine the implications of China’s soft power diplomacy on North Korean nuclear crisis. China’s soft power diplomacy regarding North Korea’s nuclear crisis has significant ramifications on the process towards the peaceful resolution of the crisis. Most significantly, the most recent bilateral meetings between Xi Jinping and Kim Jong-un, Inter-Korean Dialogue, and the U.S.-North Korea Singapore Summit have attracted worldwide attention. For instance, during the historic Inter-Korean Summit on April 27, 2018 in South Korea, Kim Jong-un, Chairman of the Workers’ Party of Korea and the State Affairs Commission of the DPRK, declared to discontinue its nuclear tests. Therefore, the U.S-North Korea Summit, also referred to Singapore Summit, on June 12, 2018 is a noteworthy development towards the denuclearization process of Korean Peninsula. During that summit, Kim Jong-un reaffirmed his position and unwavering commitment to the denuclearization of the Korean Peninsula, while the U.S’ President Donald Trump reiterated on providing security guarantee to the DPRK in return.
Chinese President Xi Jinping’s invitation to Kim Jong-un on June 19, 2018 and talks on the denuclearization of the Korean Peninsula reiterates China’s sincere efforts to continue denuclearization in peninsula. As per the development of their bilateral talks, Xi Jinping met Ri Yong Ho, Foreign Minister of the DPRK on December 07, 2018 in Beijing calling for the development of their stable relations and political settlement on the Korean Peninsula through the progress of Pyongyang-Washington peace talks addressing each other’s legitimate concerns. Kim Jong-un has expressed willingness to continue fruitful discussions with the US President for “complete denuclearization” and “lasting peace” in the Korean Peninsula.
China’s positive role in denuclearizing the Korean Peninsula and improving inter-Korean relations has also been raised by the President of Republic of Korea, Moon Jae-in. He mentioned, “China has played a positive role in denuclearizing the Korean Peninsula and improving inter-Korean relations. Until now, China has played a positive role in helping very much the Korean Peninsula’s denuclearization and the improved inter-Korean relations.”
All these progresses particularly with the China have injected new impetus towards the peaceful resolution of North Korean nuclear crisis. China has been playing very crucial role in resolving the regional as well as global tensions related to North Korea’s nuclear development programs. China’s proactive mediation diplomacy, multilateral as well as bilateral engagements, facilitation to dialogues and meetings for all parties have played crucial role in dealing with the crisis through soft power diplomacy.
Diplomatic Maneuvers for China-US trade war: December 2018 agreement
On the sidelines of the G20 summit in Buenos Aires, Argentina on December 1st 2018 the US President Donald Trump and the Chinese President Xi Jinping concluded a conditional trade agreement, according to which Beijing has to reduce its current trade surplus with the US by increasing Chinese purchases of soybeans, natural gas, commercial aircraft and some other US industrial goods. In contrast, Washington will maintain the tariff rate on Chinese exports to US of US$200 billion at 10 percent, instead of increasing it to 25 percent, which was due to come into force on Jan 1st 2019.
Although some commentators, politicians, or scholars over-optimistically described that deal as the end of the trade war, or at least a first step, between the two countries, including President Trump himself; but in fact by analyzing the reasons behind the two countries’ decision to conclude such agreement and whether this agreement paves the way for a final trade agreement or not, and what obstacles may stand in the way of reaching a final trade agreement between the two countries, it seems more likely to be a beneficial truce or a diplomatic solution to gain more time, calming the growing escalation of the trade war and to control its affiliated losses from both sides. Accordingly, the first question that may come in mind is how the future trade relations could be between the two countries?
The coming sections attempt to answer these questions by explaining the reasons behind conducting such agreement for the two sides, the main barriers or obstacles that may prevent reaching a commercial peace between the two countries, and the prospected future of US-China trade relations based on these factors as following:
Why to conclude such agreement?
Based on the rational choice approach, the simple answer of this question is that such agreement is beneficial for both of them; and in fact it is also beneficial for all the international economy, at least to stop the continued losses of both countries.
For the United States
In order to control the losses of the American economy since the beginning of the trade war, where the indicators of the American stock markets declined sharply during October and November 2018; large losses suffered by the American farmers because of China’s imports reduction of agricultural products and soybeans in particular, where 60 percent of its total US production were importing by Beijing; and the costs of the US Department of Agriculture increased for providing almostUS$12 billion as aid to farmers and breeders affected by the trade war.
Seek to improve the trade balance with China, where the Chinese trade surplus have been increased to $293.5 billion from January to November 2018, comparing with $251.3 billion in the same period previous year; combined with increase the Chinese exports to the US by 9.8% annually since November 2018, While imports fell by 25% during the same month.
In addition, to avoid any further economic damages or losses that may occur because of the continued escalation of the trade war between the two countries whether to the American or the international economy, Moreover, to face the internal pressure of his strong opposition, and for the re-election considerations.
The agreement came shortly after the G20 industrialized nations backed an overhaul of the World Trade Organization (WTO), which regulates international trade disputes, giving a symbolic victory for Trump administration, a sharp critic of the organization.
To reduce the negative impact of the trade war, where the Chinese economy suffered from a decline in the economic growth rate during the third quarter of 2018,the defaults in the payment of corporate bond yields, and the decline in property prices; in addition to the devaluation of the Chinese currency since May 2018 by more than 8%, Which is warning to slow the economic growth to 6.3 percent next year compared to the current growth rate of 6.5 percent.
To avoid increasing US tariffs that would undermine China’s economic growth prospects, and increase pressure on its financial markets.
In addition to maintain the stability of the international economy, in order to avoid any negative effects on the Chinese economic ambitions such as the Belt and Road Initiative (BRI) whether directly or indirectly.
– Based on the abovementioned reasons it seems clear that such agreement is a beneficial for both sides to gain more time and prepare themselves for a second round of the trade war, or at least to stop the terrible consequences of the trade war escalation.
Obstacles of a commercial peace between the two countries
There are many obstacles or barriers that prevent a long-term commercial peace between China and the US such as:
The low level of trust between the two countries because of many of the thorny issues among them such as addressing Intellectual Property Rights (IPR) protection, the synthetic opioid fentanyl being sent from China to the United States, non-tariff barriers, cybercrimes, cyber-security, services and agriculture; and especially after the United States accuses Beijing of forcing American and foreign companies in general to disclose trade secrets versus access to the Chinese market.
The different understanding of the agreement by the two sides and the lack of clear future trade talks between them are also stumbling blocks in commercial peace way; while president Trump pledged to freeze tariffs in exchange for China’s commitment to reduce bilateral trade deficit with the US, but it is still unclear what exactly Beijing proposed; where the reports published by China’s state-owned media completely deny Beijing’s commitment to reduce the trade deficit with the US. In addition, whether China can reduce its tariffs on the American products, also the quantities and timing to resume its purchases of American goods are not clear. In addition to tariffs on Chinese goods, Trump has imposed tariffs on steel and aluminum imports into the United States this year. Numerous countries have filed litigation at the WTO to contest the levies.
Arresting the chief financial director of Huawei Communications Technology in Canada (the daughter of Huawei’s founder, the second largest smart phone company in the world)on December 1st 2018 (the same day as the agreement was concluded); and the American requests to extradition on charges of posing a threat to US national security arguing that the technology it uses can be used by the Chinese government for espionage. Additionally, the US companies were banned from exporting to the Chinese telecommunications company ZT earlier 2018 due to Iranian sanctions had been violated. Accordingly, the Chinese Vice Foreign Ministry has summoned the US Ambassador to China on Dec. 9 in a protest over the arrest. There is no doubt that this issue will affect the scheduled talks between the two countries; While the Trump administration insists that it will not affect the ongoing trade talks, Beijing believes that it is just an American attempt to contain China’s technological ambitions. In response, Beijing may have to take some measures to calm the mounting public anger, bearing in mind that a Chinese court decision to ban the sale and import of most iPhone models on Dec 10.
The fact that the competition between the two countries is much farther than the limits of the trade warand trade is one aspect of this competition, where from the Communist Party of China’s perspective the United States seeks to bring about comprehensive changes may reach the extent of changing the Chinese political system, and obstacle the Chinese economic and political aspirations.
Indeed there are many indications that the Trump administration consider the issue as much greater than a trade war by aiming to contain or undermine China’s rise in the world and maintain the American economic and political hegemony over the world for instance the US national security strategy and Trump hint to withdraw from the Nuclear Weapons Agreement, the declaration of the free and open Indo-Pacific economic zone, and the American opposition to BRI as well as the Made in China 2025’splan. In addition, the adoption of the America First policy gives the impression that the United States is seeking concessions, not to improve trade relations, but to maintain American hegemony. Furthermore, the historical experience proves that the American perspective in dealing with the international issues mostly characterized by realism features, where as soon as it considered any state as their rival the caution will prevail on their relations and keeps working and set strategies to win the zero-sum game with this state.
The narrow timeframe of the agreement, which lasts for no more than 90 days for further talks with the aim of structural changes on some thorny and complex issues, therefore, it is difficult to resolve this long list of issues in that short timeframe.
Furthermore, the two countries are also at odds over some other issues such as the China’s extensive claims in the South China Sea and U.S. warship movements through the highly sensitive Taiwan Strait.
Future of US-China Trade Relations
Whether the two countries could reach a commercial peace or not is depending heavily on their ability to overcome the above challenges and the real willingness of both sides to take concrete steps to end their trade war.
From one side, there are some steps or measures from the both sides to contain and avoid the escalation of trade war such as President Xi’s agree to designate fentanyl a controlled substance during the meeting, the Chinese announcement to slash on US-made autos from 40 percent to 15 percent in an attempt to show its willingness to calm the tension with Washington.
In the same context, whether the annual sessions of the National People’s Congress, the Chinese People’s Political Consultative Conference (CPPCC) scheduled for March 2019 may lead to substantial changes to China’s economic policy will be a decisive factor in determining the future of the US-China trade war. On the other hand, the announcement of President Trump on December 11 that he may intervene in the Justice Department’s case against the chief financial director of Huawei if it would be in the interest of U.S. national security and help forge a trade deal with China, gives an impression that both sides have a desire not to escalate the trade war or at least express their fearing about the consequences of this escalation.
From another perspective, it’s arguable that the US-China trade agreement is very similar to the agreement between Washington and the European Union in July 2018, which included strengthen the free trade measures and the announcement of more European purchases of the American agricultural products. But the agreement is in danger of collapse, with President Trump threatening once again to impose a 20 percent tariff on all cars and spare parts imported from the EU. The same scenario is possible with China as long as it serve the American interests, especially with the lack of a final agreement on what Washington considers as unfair trade practices by China in the areas of cyber espionage, piracy and intellectual property rights violations. With bearing in mind that the White House said talks would take place to resolve within the next 90 days specific US complaints such as forced technology transfer, or else existing 10 percent tariffs would go up to 25 per cent.
New Era of China – India Relations
Modi’s informal visit to Wuhan china as a indication of Sino – Indian rapprochement reason being both are world important engines of economic growth, economic globalization and making positive contribution toward peace and development .Regardless of Wuhan’s outcomes, India remains wary of China’s deepening regional influence, primarily through the Belt and Road Initiative (BRI), which Xi sees as not only a vehicle to deepen China’s clout but as holding domestic value in showcasing his country’s emergence. China also convincing India that the China-Pakistan Economic Corridor is economic cooperation and does not influence China’s impartiality.
China and India recently locked horns on Dokalam issue, a 72 days military standoff was the result of the accretion of mistrust between the two countries. Modi and XI emphasized the need for greater cooperation and encourage CBMs to this reason because its conducive for development of the people and as well as the region. In Wuhan informal summit both leaders agreed to undertake joint economic and developmental projects in war-torn Afghanistan which is in the backyard of china and India. Foreign secretary Vijay Gokhale who is considering to be the architect of Sino – Indian rapprochement commented during the press briefing that the issue of Masood Azhar who is the chief of jaish e Mohammed also raised with President XI because china has repeatedly blocked India’s bid to designate Masood Azhar as global terrorist in the UN.Similarly, India’s membership bid to the Nuclear Suppliers Group was also opposed by China reason being India is not a signatory to the Comprehensive Nuclear-Test-Ban Treaty or the Nuclear Non-Proliferation Treaty also comes under discussion between two leaders.
The Asian Infrastructure Investment Bank (AIIB) is an excellent example of this “incremental approach.” The AIIB was newly initiated by China in 2015, but India has not only gained significant political capitals in the field of international finance by becoming the bank’s second-largest shareholder, but also has harvested considerable economic benefits as its largest loans recipient. As India has become an important member of the groupings China has major stakes in – the Shanghai Cooperation Organisation, BRICS and the AIIB – such a multilaterally beneficial “pare to improvement” may well be attained through long-term strategic collaboration and deft diplomacy.
Furthermore, theoretical analysis of this bilateral relationship of China -India make for captivating case study due to strategic complexity, a complex web of interests ranging from tough stands on the unmarked boundaries issue to recognition of Tibet by India as part of China; with quest for energy resources to increasing bilateral trade; from perceptions of encirclement to increased cooperation on international forums and the different domestic political systems. Today China and India are the largest trading partners, with trade touching $88 billion; and target is $100 billion in 2018. Pragmatists add another dimension and said that prospects of china-India relations are not a case of conflict or cooperation, but conflict and cooperation.
On the one hand two countries “agreed to jointly contribute in a positive and constructive way in facilitating sustainable solutions for global challenges including climate change, sustainable development, food security etc. On the other hand, agreed that as major emerging economies, India and China, given their vast developmental experiences and national capacities, should join hands to take lead in offering innovative and sustainable solutions to challenges faced by humankind in the 21st century. These include combating diseases, coordinating action for disaster risk reduction and mitigation, addressing climate change and ushering digital empowerment.” On the same subject, the Chinese government communique says the two countries “agree to join hands in offering innovative and sustainable solutions to global challenges such as epidemics, natural disasters, climate change and terrorism.”
Geopolitics of Sino Indian relations marked by different strategies, Chinese cooperation with Pakistan, India’s look east policy, quest for influence in Indian ocean, china’s string of pearls strategy, south china sea, despite all this Sino- Indian cooperation paving the way from unipolarity to multipolarity. Both are the world ‘s two most populated countries. They have constant the world ‘s highest annual GDP growth rates over the past decade of9 % for China and 6 or 7 % for India. The two countries have been among the world ‘s most successful in surviving the challenges of world Recession since 2008.“It is a good start. More joint projects should be in their shared neighborhood such as Nepal, Sri Lanka, Myanmar and other ASEAN countries. Africa is also a region of full of possibilities,” said Lili, south Asian scholar at the Institute for International Relations at Beijing’s Tsinghua University.
For that reason experts say China and India can’t afford to compromise their economic ties, regardless of conflict.”China has achieved remarkable economic progress in the past five decades, which provides valuable lessons to India’s development. And China’s inclusive and responsible attitude towards globalization for the economic reform (and opening) attracts India’s attention and gives them more confidence,” said Liu Chunsheng with Central University of Finance and Economics.
To be conclude, the territorial dispute, regional geopolitics, and economic competition, catalyzed by misperceptions, will ensure that Sino-India relations will remain competitive in nature. However, the high cost of war, growing economic interaction, and the imperative for peaceful economic development will also help keep the level and nature of competition to a pragmatic level.
A ground-breaking joint Sino-Indian economic project in Afghanistan will send the signal that cooperation can prevail over competition and a message to Pakistan that China recognizes India’s legitimate role in Afghanistan, say strategic experts.
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