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War transforms once more: The rise of a new type of warfare in the pacific

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Klaouzevits, had warned us almost two centuries ago, war is a chameleon, it changes its form constantly, hiding his phase and transforming from one type to another.

The latest transformation in the naval warfare took place in the World War II and introduced itself with an infamous act. The Japanese attack, in Pearl Harbor. The Japanese navy tried to win the war by sinking the entire US Pacific fleet, using not the big guns of its battleships, but the airplanes of its carriers. So, it was in the Pacific, where sea warfare as we understand it in the last 70 years, developed and formulated. Big carriers, loaded with airplanes, were seeking the enemy in the vast Pacific Ocean and they were launching them, to destroy him. In that war, enemy sailormen never saw each other. The carriers were launching their planes hundreds of miles away from the enemy forces. The battles were fought in the skies near and above the carriers. The actual fighting was taking place between enemy pilots who were trying to shoot down each other and between bomber pilots and the air defense capabilities of the carries and the other ships. In stark contrast the sea battles in the Atlantic were more of a traditional type and the last great battles between warships had taken place there, like the hunt and sinking of battleship Bismark.

The importance and the invincibility of the combined maritime and air power proved its value many times over during the cold war. USA carrier groups with the ability to project power everywhere in the world, the monstrous firepower and flexibility of their airplanes, secured the sea lines of communications, protected American interests all over the world and contributed to a great degree to the final victory over the USSR. Those magnificent and marvelous ships seems that they are about to meet an able opponent. The new weapon system that are promising to change once again the phase of sea warfare actually is a combination of an already existing technology and of one that is developing fast. The first technology, is the missile technology already mature and easy to master. The second technology is about flying at extremely high speed (hypersonic speed- that is in excess of mach 5 and up to mach 20). Flying a controllable vehicle in that speed sets a series of technical problems that are not solved yet. Probably the major problem is to create a jet engine that could work in that conditions.

To be accurate, supersonic antiship missiles are in service for many decades now with the once Soviet Navy and now its successor Russian Navy. Their development and adoption is due to qualitative and numerical inferiority of the Soviet naval forces in the cold war. USSR had to find a credible, cheap and easy way to negate the American threat, of course not globally but in the littoral areas of the Soviet empire. The soviet engineers came up with the use of supersonic missiles launched from a variety of platforms (planes, ships, land launchers). The first Russian cruise missile AS-1 was actually a modified MIG-15 in an antiship role. The development, production and use of supersonic missiles remains a vital and central Russian strategy today with the latest 3M82 / Kh-41 Moskit / SS-N-22 Sunburn and P-800 / 3M55 / Kh-61 Yakhont / Brahmos / SS-N-26 Stallion missiles.

Additionally, Russia became a major supplier of supersonic missiles both to China and India and the main partner of both countries in developing their own systems, providing the necessary technology and knowhow.China adopted and copied Russian supersonic missiles for much the same reason that made them indispensable to the Soviet war machine. PLA for decades lacked the appropriate naval power to defend and control its nearby seas. The latest member in the countries that built and operate supersonic missile is India which produces in cooperation with Russia the Brahmos missile. The Brahmos use a combination of a conventional missile for the first stage of its flight and a ramjet engine for the final approach to target. It has a cruising speed of Mach 2.8 (3,400 km/h) and a 290 km range and it can it can fly from an altitude of 15 km to mere meters above the waves.In contrast, and in full compliance with the paradoxal logic of strategy, as Luttwak another strategist claims, US and NATO choose to develop an efficient and capable air defense and not to engage in a competition in developing supersonic missiles of its own. Recognizing the grave danger to the fleet and especially to the most valued ships of all, the carriers, hurried up to beef up the air defenses especially in the antimissile field.The most prominent example is the combination of the F-14 Tomcat, a billion dollar airframe and the Phoenix missile, solely designed and built to engage and kill air breathing threats long before they reach the American flattops. The above combination is not the only defensive measure but one of many. Other systems including CIWS Phalanx, antimissile missiles, electronic counter measures etc., were developed in a more or less expected effort to protect Americas most valuable asset. Therefore West even at this time hasn’t got any supersonic missile equivalent to the Russian ones.

Eventually the cold war ended, leaving US as the only superpower in the world. Alas, new threats emerged like terrorism and new rivals appeared in the horizon like China. In response to the new security environment, new ideas about new weapons and the different use of old ones came up. The common theme and the main idea behind the new concepts, was one physical element, essential in warfare, namely speed. Speed regarded by American agencies as the new stealth, providing the necessary superiority to friendly forces. Superfast missiles compress the time defenders have to react to an attack and to successfully engage it and if used in large numbers can saturate the air Defence systems and defeat at low cost even an expensive and powerful carrier battle group.Among the first ideas, was the retrofitting of old nuclear intercontinental ballistic missiles and arming them with conventional war heads. That way, they could be used against an array of targets without provoking a nuclear response. The idea quickly abandoned because of the obvious disadvantages. Once a ballistic missile is launched the enemy has no way of knowing what kind of warhead is carrying, thus a nuclear war may start due to an ambiguous act. Moreover a ballistic missile launched to strike a terrorist cave in Afghanistan, or Africa would follow the same ballistic path that could be used to target Chinese or Russian cities, provoking a nuclear response. US Congress taken into account these ambiguities and uncertainties stopped the development of the project, despite the many attempts by military planners to obtain approval of their plans and adequate funding.The plan was part of a program—in slow development since the 1990s, and now quickly coalescing in military circles—called Prompt Global Strike.On the other side of Pacific Ocean though, such qualms never appeared. China’s PLA probably copying the American concept developed the very same weapon that US Congress banned. China converted an intermediate nuclear ballistic missile into an antiship missile named Dong Feng 21D. This ballistic missile is launched toward space and arcing back to earth at speeds of about Mach 10 with a reported range of about 1,500 km. China, developed this missile as a “carrier killer”, an easy, effective and cheap way to challenge Americas naval supremacy in the Pacific Ocean, denying access to East China Sea to American vessels and ultimately leaving Chinese forces unopposed to secure the capitulation of the other Asian states and eventually regional hegemony.

So far, we have talked about already existing technologies, albeit in a new role. All the weapons are either modified ballistic missiles with conventional warheads or supersonic cruise missiles with speeds up to 3 or 4 Mach’s, nothing exotic and nothing new.The really interesting, revolutionary, new and game changing technology is hypersonic flight that enables vehicles to fly at speeds in excess of Mach 5 and up to Mach 20. These hypersonic vehicles are not missiles. Missiles carry their own fuel and oxidizer, a feature that permits them to operate in thin air upper atmosphere and outer space, but limits their flight profile and uses. In contrast, hypersonic vehicles are airbreathing vehicles that are using atmosphere’s oxygen just like turbofan and turbojet engines. Such vehicles,could travel at missile speed but will have the maneuverability and agility of an aircraft, making easier to avoid defenses, to change course en route to target and all that in a more economical way.

Where is the catch? Those wonderful capabilities demand the development of a new kind of engine that can operate reliably in those high speeds. Existing turbojet and turbofans engines can operate at speeds of about Mach2. Ramjets (jet engines without spinning blades like turbofan or turbojets but with specially designed inlets capable of slowing and compressing the airstream), can operate in higher speeds of about 3 to 4 Mach’s. Hypersonic vehicles operating at speeds above Mach5 require the development of scramjets (supersonic combustion ramjets) engines, capable of igniting and maintain combustion in a stream of supersonic air. Technology hasn’t provide a credible answer yet to this challenge. To make matter worse ramjets and scramjets cannot start flying on their own; they must be accelerated by a carrier aircraft or a first stage missile.The first successful flight test of a scramjet vehicle took place in the 1990’s by a group of Russian, French and American scientists, though it’s not quite clear if supersonic combustion was achieved in those tests. More recently, Russia and India are reportedly working together to produce a scramjet version of Brahmos missile. As for China beyond the DF-21D project that we have already mentioned, there are reports that is testing its own hypersonic vehicle. The Qian Xuesen National Engineering Science Experiment Base is one the centers that research and development about hypersonic technology take place. Recently, according to American and Chinese media, China tested an hypersonic vehicle that reached Mach 10 speed, above its territory. American media designated it as WU-14.Despite all that China, India and even Russia are still far away of their target to build a credible, reliable, operational ready, hypersonic vehicle.

Interestingly enough – or maybe not- the country that has the most advanced and more numerous such programs is USA. To begin with there is the X-51A Waverider, that was tested last summer, over the Pacific Ocean and is produced by a consortium composed of USAF, Boeing, DARPA, NASA, Pratt and Whitney, Rocketdyne and the USAF Research Laboratory’s Propulsion Directorate. The test ended after a malfunction resulted in the destruction of the vehicle. Of course the X-51A, it’s not the only program developed under the prompt global strike iniative, the Pentagon supports and funds DARPA’s Falcon Hypersonic Technology Vehicle 2 and Army’s Advanced Hypersonic Weapon. And we’re not finished yet; another promising project is based on one of the Cold War legends, the famous SR-71 “Blackbird” spy plane. SR-71 had a revolutionary combo machine “J-58” consisted of a turbojet mounted inside a ramjet. That combination enables the SR-71 to start flying on its own and to go supersonic in high altitude. This project named SR-72 potentially would fly at Mach 5 and besides reconnaissance missions it would be capable of carrying and deliver air to ground munitions. Those munitions will have their own hypersonic features and Lockheed’s Skunk Work laboratories which are responsible for those hypersonic programs are calling them “High Speed Strike Weapon”, essentially an hypersonic missile that would be suitable for use by future bombers and fighter aircrafts. Lockheed believes that in the future “speed will be the new stealth”, meaning that if you’ re flying extremely fast the enemy will not have the time to detect you and shoot you down.

Furthermore DARPA recently announced the launch of yet another one hypersonic experimental program. It is called Experimental Spaceplane (XS-1) and according to DARPA its purpose is to develop a reusable unmanned vehicle with costs, operation and reliability similar to a traditional aircraft yet capable to ascend to suborbital altitudes to deploy satellites into Low Earth Orbit. Despite the many advantages that hypersonic systems would have in future battle space we should not get too excited. The needed technology is still in its infancy and we’re probably many years away from their operational deployment. Furthermore the paradoxal logic of strategy is working even before those systems became operational, producing the antidotes that will provide the necessary means, mainly for a carrier battle group to counter a swarm attack by supersonic missiles.

Those technologies in contrast to supersonic missiles are for the most part already developed and ready to be tested in operational deployments. Among them the most promising is the laser guns that would be used to counter asymmetrical threats such as drones, speed boats,missiles and so on. The laser guns with their ability to fire fast, accurate and continuously without the fear of running out of ammunition are already installed in US navy ships. Other systems include electromagnetic rail guns and revolving missile launchers. Those weapons are also being developed but the US armed forces, an astounding fact that exemplifies their resolve not only to hold but to expand their superiority over their potential competitors.To conclude, Pacific Ocean once more is becoming the workshop of a new type of warfare. Warriors of both sides will never see each other in those wars but will depend on systems fast, lethal and accurate to destroy the enemy in mere minutes or even seconds. Additionally despite the strengthening of potential competitors, USA still is the most powerful, sophisticated and intelligent actor in the area. Furthermore, although anti access and area denial capabilities are an important element of maritime strategy, still the real and paramount ability of a navy, the only one that will ensure victory is to confront the enemy navy in the sea and defeat it.

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China & Nepal working towards a genuine good-neighbour tie

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Authors: Himal Neupane & Jamal Ait Laadam

Although China and Nepal are very different in terms of each territorial size, population, economic capacity, technological prowess and above all military power, the bilateral relations between them have been undergone consistently and significantly. Since 1955 when China and Nepal formally recognized each with, their bilateral relationship has been characterized by equality, harmonious coexistence, everlasting friendship and overall cooperation. Particularly during the past over 40 years, China and Nepal have undergone substantial developments in view of mutual understandings. For example, in 1996 the two sides for the first time agreed to build up a good-neighbour partnership of the 21st century.

In line with this spirit of mutual respect and equality, Chinese President Xi Jinping paid a state visit to Nepal on October 12-13, during which the heads of the two states formally announced that they elevated the China-Nepal Comprehensive Partnership of Cooperation to Strategic Partnership of Cooperation in light of their many common values to enhance cooperation It is reported that President Xi frankly said Nepal wouldn’t be a landlocked country in the future as the trans-Himalayan connectivity network ultimately will support sustainable development and stability of the entire South Asia region. This is not only a promise from a large neighbor, but also a sort of responsibility from a rising major power of the world, which aims along with other parties, either large or small,  to create an international community of shared future.

Accordingly, on October 12, Nepal and China signed 18 memorandums of understanding and two letters of exchange. The priority was laid down with a focus on the implementation of signed agreements and acknowledged policies. Besides, they also reaffirmed the commitment to broaden the level of cooperation under the spirit of the Belt and Road Initiative (BRI). Moreover, China and Nepal have agreed to enhance connectivity through ports, railways, roads, aviation and communications within the broad framework of the BRI and the Trans-Himalayan Multi-Dimensional Connectivity Network which are of strategic significance. As Chinese President Xi put it, “our two peoples have shared weal and woe, and set an example of friendly exchanges between neighboring countries, and we would act to carry forward the traditional friendship and take the bilateral relationship to a new and higher level via his state visit to Nepal.

For sure, nothing is free in the realm of international politics as the realists argue what China and Nepal need from each other are their common geopolitical and geo-economical interests? This kind of inquiry is sensible and also cynical. In fact, historically China and Nepal had been at good terms for a few centuries, and during the British colonial era, Nepal actually acted as a natural buffer state between imperial China and colonial India. Since 1949 when the People’s Republic of China was founded soon after the independence of India, Nepal ended its isolation and forged amicable ties with India and other countries. Initially, Nepal had close ties to India in terms of culture, ethnics and even military affair, but it never accepts external domination. In 1955 Nepal formally recognized Beijing as the legitimate government of China and since then, it has consistently supported China in foreign affairs. Meanwhile, China has offered economic aid to Nepali reconstruction in a gradual way.

However, since the 1980s, China has steadily transformed itself into the second largest economy of the world with its alarming manufacturing capability and progressive technologies. Due to this, China has provided more assistances to Nepal and other neighbours to share Chinese public goods, especially in terms of the infrastructure projects and alleviation of poverty. For example, President Xi announced in 2018, “In the coming three years, China will provide assistance worth RMB 60 billion to developing countries and international organizations participating in the Belt and Road Initiative, and contributing an additional RMB 100 billion to the Silk Road Fund.” As a developing country nestled in the heart of the Himalaya, Nepal surely needs to expand its infrastructure through involving itself into the BRI with the view to exploring and finally harnessing its huge potential sources —hydropower—for export.

Strategically speaking, China needs to maintain its border areas peaceful and stable in light of its “NEWS strategy” that means while China tries to consolidate its entente partnership with Russia on the North and pacifying its East coast, it necessarily aims to sustain the BRI projects to the West and the maritime silk route to the South. This is the core of the NEWS strategy initiated by the Chinese elite since President Xi took power. Consider Nepal’s strategic location and political stability, China is sure to promote the bilateral ties as the two previous MOUs were signed in Beijing including to rebuild Chinese—Nepali transit road network agreements. It will help northern Himalayan areas get an alternative transit route and also facilitate the local economics, as much important part of the BRI as the economic corridor between China and Pakistan. Moreover, since 2016, a freight rail line was even completed linking Lanzhou, a heavy industrial city in the West of China through Xigaze in Tibet, down to the capital of Nepal. This is a truly strategic pivot of the grand BRI project.

To that end, President Xi revealed to his Nepali counterpart Bidhya Devi Bhandari that the two sides should work closely to carry out the construction of a trans-Himalayan connectivity network, and expand exchanges and cooperation in various fields. For her part, Nepali President Bhandari graciously welcomed Xi’s state visit to Nepal and stressed that the rise of China backed up by its modernization drive will help bring benefits to Nepal and promote regional peace and prosperity. In light of this cordiality, the two governments issued a joint statement on Oct. 13, agreeing on more practical cooperation in the new phase of bilateral relations. For a few key points serve to inllustrate that first, the two sides agreed to take the BRI as an opportunity to deepen mutual benefits in arious fields including the Kathmandu-Pokhara-Lumbini Railway Project. Furthermore, cooperation will cover the Zhangmu/Khasa port, the Lizi/Nechung port, and the three North-South corridors in Nepal. Second, the two sides will hold comprehensive discussions to strengthen trade relations, including to take positive measures to increase Nepal’s exports to China and to facilitate Chinese banks to open their branches and other financial services in Nepal. Last, China promises to help Nepal shake off the status of being a least developed country and achieve the sustainable development goals in the next two decades.

Since states are committed to each other by the nature of the world in which they exist, any close cooperation between China and Nepal is never bilateral only, that means there is always local, regional and international concerns, suspicions and even hostilities towards either China or Nepal or both. Geopolitically, India is the first power, understandably, to feel uncomfortable if not angry. This is the reason why President Xi made his first trip to India prior to his state visit to Nepal, and held comprehensive talks with Indian Prime Minister Modi. Second, China and Nepal also need to coordinate each other deftly to convince other neighbours such as Sri Lanka and Bangladesh that any sort of their cooperation would never be exclusive but inclusive and open all others in the South Asia. Geo-economically, China has reiterated that it would not seek to use its economic or financial leverages to “dictate” the local affairs of the recipient countries. Meanwhile, Chinese companies also need to move in prudently and read the local laws and political norms before jumping into the businesses.

Xi has frequently said, China is the largest developing country and also a learning country all the time. In order to promote China’s strategy to link the countries involved, mutual respect and equality are the prior condition to the long-term cooperation. In light of this, it is expected that Xi’s state visit to Nepal, the first one by a president of China over the past 26 years, will unlock new strategic opportunities for bilateral relations, as well as positively promote their ties with India by understanding the prospects for trilateral cooperation. It is clear that Chinese-Nepali economic integration through BRI is unstoppable, so it is sensible for India and the others in the region to take the opportunity to extend the proposed high-speed railway between those two all the way south to the nearby West Bengal port of Kolkata to more closely tie the three together in a system of complex economic interdependence. This is a balanced approach to prevent an open rivalry between the key member states of the BRICS and the SCO over their common neighbors. Given this, Xi’s visit to both India and Nepal might be the very time to enhance the trilateral understanding among Nepal with its giant neighbor. To that end, Nepal, though a much smaller state compared to China and India, could play positively a role as the bridge for building a more trust-based relationship across this region.

China has showed its willingness to share with Nepal its development experiences, practices and inclusive economic governance approaches. In doing so, geopolitical factors should never be the obstacles for China-Nepal cooperation. Rather, Nepal could serve as a dynamic bridge between China and India, and China and South Asia.

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Semiconductor War between Japan and South Korea

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Authors: Gleb Toropchin and Anastasia Tolstukhina

In the summer of 2019, a trade conflict broke out between Tokyo and Seoul and the matter is about more than the history between the two countries. The two developed economies have long been locked in a competition on the global cutting-edge technologies market. At the same time, they are links in the same technological chain.

At first glance, the exchange of trade restrictions that is taking place against the background of mutual accusations is nobody’s business but Tokyo and Seoul’s. Nonetheless, the consequences of the confrontation between the two countries have a global nature. The present article analyses the causes of the disagreements and looks at how the situation may develop

Introducing Restrictions and Removal from the “White List”

Despite the events of the colonial past [1], as well as the current territorial disputes that are so typical of Asia’s international politics [2], South Korea is one of Japan’s three largest trade partners. Japan exports into South Korea up to $54 billion in goodsThe key commodities include semiconductors and materials for their manufacture

The dependence of South Korean companies on imports of fluorinated polyimides and photoresists exceeds 90 percent, and their dependence on imports of hydrogen fluoride is around 44 percent (although this figure has fallen gradually from 72 percent in 2010)

However, on July 1, 2019, the Government of Japan announced restrictions on the export of commodities to South Korea that are of critical importance for microelectronics, and on July 4, the changes to the procedure came into force

Given the long-established delivery mechanism, such a political step was a surprise for many. The restrictions mainly affected three key materials for the microelectronics industry: fluorinated polyimides, hydrogen fluoride, and photoresists (these materials are used in the manufacturing of semiconductors and display panels). This measure does not mean that deliveries of these materials to South Korea have been completely stopped; however, from now on, it may take up to 90 days to approve transactions. Additionally, Japan said it would be taking South Korea off its “white list” of trade partners. The list includes states that are believed to be safe from the point of view of exporting strategic commodities and that are granted trade preferences

Let us try to understand why the Government of Japan took such steps

Pressure from Taiwanese and South Korean competitors

In 1986, an agreement was signed between Tokyo and Washington that prohibited Japan from undercutting global semiconductor prices. This step was initially intended to make the United States more competitive. However, even in those circumstances, Japan managed to take a significant chunk of the global semiconductor market from the United States in the late 20th century and retain its high positions until the 2010s. However, as early as 2012, experts noted that pressure from Taiwanese and South Korean competitors resulted in semiconductor sales of Japan’s four chip-makers, Toshiba, Renesas, Sony and Fujitsu taking a marked dip

Samsung Electronics succeeded in mastering the subtleties of developing technologies just at the right time, while Japan began to lag behind in R&D due to problems with formal education, and its revenues from global sales of microelectronics were falling against the backdrop of falling prices and the high exchange rate of the Japanese yen. Among other causes of this phenomenon, Japanese experts cite the desire to create hi-tech goods without account for high costs, and lack of innovative ideas

Today, South Korea is the leading manufacturer of memory microchips. Samsung Electronics and SK Hynix hold two-thirds of the global market. Additionally, both the United States’ Apple and China’s Huawei depend on the products produced by South Korean companies. Integrated circuit units account for 17 percent of South Korea’s exports (the entire microelectronics sector accounts for nearly a quarter of its exports), compared to less than 4 percent for Japan

An analysis of the global microelectronics market demonstrates that, currently, the market particularly values dynamic random-access memory semiconductors (DRAMS) that hold tremendous significance for such cutting-edge technologies as artificial intelligence, the Internet of Things and robotics. South Korea holds impressive positions in this area as well: Samsung and SK Hynix control 72.8 percent of the DRAMS market and 46.8 percent of the global flash memory market

Reasons for Introducing Restrictive Measures

The East Asia Forum reports that Japan’s strategy of opposing Seoul was developed jointly by the country’s Ministry of Economy, Trade and Industry, Ministry of Foreign Affairs and Ministry of Agriculture, Forestry and Fisheries. The Cabinet of Ministers subsequently supported these measures, thereby making the key decision to transfer the issue into the political realm

It appears that Japan’s decision to impose restrictive measures was prompted by the fact that the country has clearly fallen behind technologically on the global microelectronic market, which negatively affects both the country’s economic indicators and its national security

According to the expert June Park, the Government of Japan decided to institute the restrictive measures out of concern for national security, since, in exporting rare materials to South Korea, Tokyo cannot be certain they will be used properly

The Japan Times notes that Tokyo justifies the introduction of increasingly strict export requirements by claiming that confidence in South Korea has been undermined. In particular, some media outlets report that between 2015 and March 2019, no fewer than 156 materials, including hydrogen fluoride, were smuggled out of South Korea. There were also reports of hydrogen fluoride being exported to countries that are under international sanctions (Iran, Syria and even North Korea). Another reason for the restrictions is Tokyo’s concerns that South Korea violates intellectual property rights

South Korea denies all accusations. Its arguments are logical: Iran and Syria are friends of North Korea, therefore, Seoul has no reasons to help their regimes. President of South Korea Moon Jae-in called for the differences to be resolved by diplomatic means. However, the talks held on July 12, 2019, in Tokyo did not yield any results. Consequently, Moon Jae-in instructed the relevant agencies to develop reciprocal measures. At about the same time, there were reports of South Korea possibly filing a grievance with the World Trade Organization. As a result, hearings on the issue were launched in Geneva on July 24, 2019

In late July 2019, news broke that Tokyo was considering further restrictions since Japan believes the re-selling of strategic materials by Seoul to be a violation of the non-proliferation regimes regarding both weapons of mass destruction and conventional weapons. In this case, the restrictions would extend to other types of commodities and materials. On August 2, the Cabinet of Japan approved the decision to take South Korea off its “white list” (where the Republic of Korea was the only Asian state), thereby depriving it of trade preferences in regard to the materials mentioned above. The full list exceeds 1100 items

Despite these events, several deliveries of these materials from Japan to South Korea were made in August. However, they did not result in a thaw in bilateral relations. Seoul reciprocated by putting Japan on a restrictive trade list and terminating the military intelligence-sharing pact with Tokyo

“Wu Wei” American Style

China holds leading positions in deposits of rare-earth metals. Moreover, approximately 90 percent of the world’s rare-earth magnets are manufactured in China. Japanese companies use China’s raw materials to manufacture fluorinated polyimides, hydrogen fluoride and photoresists that are subsequently supplied to South Korea, Taiwan and other countries to be used in manufacturing chips, displays, etc. The circle is complete when these commodities go back to China to be used in the manufacture of finished products (such as smartphones and tablets), creating a sort of a closed-loop. Thus, the manufacture of competitive hi-tech products today is impossible within a single economy, and Chinese companies depend on parts coming from other Asian countries

Tracing the entire technological chain, we can assume that the Japan–South Korea conflict is closely linked to the trade war between China and the United States. South Korea’s Samsung Electronics is hindered by the restrictions on deliveries of Huawei memory chips since the latter is under U.S. sanctions. In turn, interrupting the chain of semiconductors delivery from South Korea will slow down the development of artificial intelligence in China. And who benefits from this? This is a rhetorical question

It would seem that the United States should be interested in cordial relations between their allies in the region, allies that form a sort of counterbalance to China and are ideological antagonists to North Korea. The White House, however, intentionally or unintentionally, demonstrates adherence to the Taoist principle of inaction, or “wu wei” (无为 in simplified Chinese), which entails a conscious refusal to act and the assumption of a contemplative stance. From the outset of the confrontation in July 2019, the United States announced it would not interfere in the conflict. Despite individual experts calling upon the United States to act as an intermediary between the two Asian states, Washington did not change its position

We should also note here that the Japanese company Toshiba announced the construction of a facility for the production of NAND-type (from the English NOT-AND, that is, a binary logical element) flash memory devices in Iwate Prefecture in cooperation with U.S. chip manufacturer Western Digital. We can cautiously assume that the United States and Japan are progressing toward a “technological union” in order to defeat China in the race for domination of the semiconductor industry

Public Opinion

Speaking of the impact that the conflict has on public opinion in both countries, we can quote a survey conducted by Japan’s Asahi Shimbun in mid-September 2019. Overall, slightly less than one third (29 per cent) of respondents admitted that they had a negative opinion of South Korea. This was far more pronounced among older people, which can be linked to their conservative views and the “proximity aberration” phenomenon (put simply, the older generations remember the events of the 20th century well)

As for South Korea, an anti-Japanese “grassroots” campaign has been launched in addition to the “top-down” process. In the second half of the summer of 2019, slogans『 가지않습니다 사지않습니다 』 (Korean for “Do not visit, do not buy”) calling for boycotting trips to Japan and Japanese goods spread on Korean social networks. And it looks like they were successful to a degree. For instance, the Yonhap News Agency reports that the number of South Koreans travelling to Japan in August fell by 60 per cent compared to the same period last year

In the run-up to the 2020 Summer Olympics in Tokyo, the trade conflict has become a reason for manipulating public opinion in South Korea. Additionally, we cannot rule out the possibility that populists use the disagreements between Japan and South Korea to advance their domestic agenda on the eve of the elections to South Korea’s unicameral parliament scheduled for April 15, 2020

Forecast: Cloudy in the East

Losses from the Japan–South Korea trade war may exceed $80 billion. There has already been a drop in sales of South Korean semiconductors manufactured by Samsung Electronics and SK Hynix. Moreover, the conflict threatens to disrupt the entire global technological production chain in microelectronics. The expert Robert Farley described this conflict (and the U.S.–China trade war) as “weaponizing interdependence.” One of the analysts with The Economist Intelligence Unit called this situation “mutually assured destruction.”

The Yonhap News reports that the consequences of the trade conflict have had greater negative effect on the Japanese economy than on the South Korean economy. For instance, in July–August, South Korean exports to Japan have fallen by 3.5 per cent, while Japanese exports to South Korea have dropped 8.1 per cent

The South Korean economy has also suffered against the backdrop of these events. Here, Seoul has only two ways out of this predicament:

-Transitioning to domestic analogues, which LG Display and Samsung Electronics already did in September of this year. Additionally, the country earmarked 2.1 trillion South Korean won in the 2020 budget to overcome the dependence on the export of rare materials from Japan

-Searching for alternative sources of hydrogen fluoride and other rare materials for microelectronics. Media outlets have reported that Russia might be a potential supplier of high-purity hydrogen fluoride. The head of the Korea International Trade Association said that Moscow had offered to supply hydrogen fluoride to Seoul. However, it is not easy for South Korean companies to transition to Russian imports of this and other materials for microelectronics. The physical and chemical properties of the products must be tested for a rather lengthy period of time (upwards of six months)

Apparently, the status quo on the microelectronic market will continue in the short-term, and both parties will seek ways to minimize losses. And we can already see evidence of this. In September and October, the Government of Japan approved deliveries of hydrogen fluoride to Samsung Electronics and SK Hynix

At the same time, if Tokyo and Seoul fail to find common ground in the medium and long term, then the current global technological chain in microelectronics may be dismantled, which will, of course, negatively affect the growth rate of the global economy. However, so as not to end our study on a pessimistic note, let us note that, under the current circumstances, many hi-tech companies around the world, including those in Russia, now have the chance to become new links in the value chain and occupy its niche in microelectronics

From our partner RIAC

[1] In 1910, the Empire of Japan annexed the entire Korean peninsula. Korea essentially became a Japanese colony. The Japanese language and culture were forced onto the Korean people. Up to 200,000 ethnic Koreans served in the Imperial Japanese Army during World War II (including future president of South Korea and “father of the economic miracle” Park Chung-hee). Today, Japanese war crimes are a subject of talks between South Korea and Japan. In 2015, Minister of Foreign Affairs of Japan Fumio Kishida promised 1 billion yen to the victims of violence in compensation, and Prime Minister Shinzo Abe offered a public apology for Japan’s actions during the war.

[2] The dispute concerns the Liancourt Rocks, a group of small islets that the Koreans call Dokdo (“Solitary Islands”) and the Japanese call Takeshima (“Bamboo Islands”). Back in the early 20th century, Japan claimed sovereignty over these islands; however, following its defeat in World War II, it was forced to abandon its colonial acquisitions. On the other hand, the 1951 Treaty of San Francisco does not mention this territory, which gives Japan formal grounds to dispute the sovereignty of the islands where South Korea maintains military and civil infrastructure.

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Future Trends of China’s Diplomacy

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This year 2019 marked the 70th anniversary of the founding of the People’s Republic of China (PRC), and China’s diplomacy has also gone through a journey of 70 years. The 70-year history of the PRC can be divided into the first 30 years after its founding and the second 40 years since opening and reform were initiated in 1978. The characteristic of china diplomacy is a responsible nation, rational behavior and the confidence of great power.

China had a clear break with the old diplomacy of humiliation; established a new kind of diplomatic relations with other countries on the basis of equality and mutual benefit; secured an equal position and dignity on the global stage; gained diplomatic independence by safeguarding and strengthening national independence, and protecting national security and territorial integrity; settled the border disputes left  over from history with most neighbors by peaceful means, creating a stable neighborhood in general; established strong friendships with the vast majority of developing countries through mutual support; and set up a new diplomatic contingent for seeking the diplomacy of independence. The following are the future expectations of China diplomacy:

Firstly, Deng Xiaoping’s directive, “Don’t seek for leadership,” stays powerful in China’s new diplomacy, so China’s future diplomacy will keep on emphasizing on the management of the crisis, economic diplomacy, multilateral diplomacy, cultural diplomacy, cooperation, and accommodation while protecting the main national interest. Solving problems and managing crises will stay an important characteristic of China’s diplomacy, particularly in its ties with other major powers. Meanwhile, in cooperation with other major powers, China will appear to be more active in managing fundamental global issues at the strategic level.

Secondly, The Chinese government has repeatedly said that China does not have a plan of challenging the international system and has focused on the importance of being a “responsible member” of the universal society. As of late, China has developed new concepts for its foreign policy orientation, just as (1) “new security” emphasizing shared and cooperative security, (2) “peaceful development” focusing on non-violence commitment, (3) “win-win” cooperation denying a zero-sum comprehension of international affairs, and (4) building a “harmonious world” that promoting harmony with diversity, solving conflict through dialogue, and democratization of world governmental issues.

As these concepts demonstrate, China has no desire of being revolutionary in the international system, rather, it intends to be a responsible member of world affairs. Economic diplomacy will remain to be emphasized by china. While trade will keep on being a fundamental diplomatic focus, energy security and energy diplomacy will be given additional accentuation. Energy supply, energy shipment, and energy-saving cooperation will be fields where the diplomacy of china will move forward.

Lastly, Multilateral diplomacy will take on an even greater role in the future diplomacy of China. China will become more involved at the global level and in regional affairs at the United Nations. As the identity of China is more globally and regionally established, the current concept of multilateralism in the overall diplomatic strategy of china can be re-defined to realize national interests, address thorny issues, and provide governance in a complex world. More attempts will be created to improve regional integration between the SCO and East Asian. Finally, various needed diplomatic attempts may need to be further reinforced. China will keep on being cooperative, however, it will likewise be more active. All things considered; cultural diplomacy will be a new attribute of China’s diplomacy. Confucianism, an extremely cosmopolitan doctrine that promotes harmony and peace through human relations, will be an important component of cultural diplomacy, both to strengthen China’s soft power and to reduce the negative result of the China threat theory.

China has accumulated a wealth of experience over the past 70 years, understanding that China cannot develop without the world and that without China the world cannot prosper. China’s future and fate have been closely linked to the rest of the world. What is certain is that China will adhere to the path of peaceful development and that the people of China will join the people from all other countries in working to realize the lofty dream of a harmonious world.

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