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The North Korean strategic issue

Giancarlo Elia Valori

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Currently North Korea has turned from a regional threat into an unpredictable global strategic player. This implies that, in the future, we will need to reasonably deal with a Korean power which, however, is anything but irrational in its global choices.

Portraying Kim Jong Un’s Korea as a Shangri-La led by an unreliable man is not the truth and does not facilitate the solution of the Korean problem, both in North and South Korea.The fissile material now held by North Korea can be used to build six to thirty nuclear weapons, but what is the North Korean strategy in the use of this atomic arsenal, which is also growing steadily at a yearly pace of 18%, according to the latest data? According to experts, four reasons are used by North Korea to maintain and manage an autonomous nuclear threat which, from a regional area, has a strike range capable of hitting the United States and hence Europe.

The first one is the use of nuclear weapons by North Korea with a view to obtaining international concessions at diplomatic or more directly political levels. What concessions? Certainly the first would be an internationally recognized geopolitical status, perhaps in a stable correlation with South Korea. A status which would enable North Korea to expand its political and economic area in the whole South-East Asia, possibly in connection with the old regional alliances: maybe even the South East Asia Treaty Organization (SEATO), dissolved in 1977, the old ” zoo of paper tigers “, as a British diplomat defined it – a zoo which, however, might be rebuilt around the two Koreas.

Currently a network of credible and multilateral alliances must be recreated so as to shut in and stabilize the North Korean strategic system, thus protecting South Korea and ensuring to North Korea the stability of its regime. Or a good solution could also be the new alliance recently proposed by China for Central Asia, with Pakistan, China, Afghanistan and Tajikistan: a grouping created to counteract the loss of Russian rayonnement in the region, which could be extended to the coasts of North and South Korea so as to incorporate them within a context of reasonable and, above all, credible checks and balances.

Through Xi Jinping, China has warned the Asian regional powers against building new military alliances, proposed over the last few years especially by the United States. Nevertheless China, with its recent Conference on Interaction and Conference Building Measures in Asia (CICA), has a primary interest in neutralizing and strategically surrounding the offers of military alliance that US President Obama has proposed to Japan, the Philippines and Vietnam.

The tensions that China is facing in Eastern Asian seas and in the regional ones of Vietnam and Myanmar are such as to force it to create external (and independent) alliances compared to the old Shanghai Cooperation Organization, which plays a specifically terrestrial role.

North Korea could even adhere to the SCO and hence China would certainly control, along with the Russian Federation, the North Korean missile and nuclear potential; or it could adhere to a new tripartite alliance, with Russia and China, where the North Korean geopolitics should dissolve in a wider and well-controlled context.

With a view to preventing the North Korean escalation from going on, it is important to include North Korea in a strategic framework capable of using its power projection and, in particular, securing the borders and stability of the North Korean regime.

Without these credible assurances, North Korea will have a vested interest in managing its role as international free rider, which maximizes the political effects of its nuclear tests and hence makes an agreement with it more difficult and expensive for the other international players.

It is a way to “raise the price” of its collaboration and to focus worldwide interest on its country.

Not to mention the border with South Korea.

For the North Korean leadership, the Korean Demilitarized Zone around the 38th parallel is a constant threat and the last, hateful, relic of the Cold War.

The armistice of July 27, 1953 froze a strategic factor which, today, has no longer international motivations.

The issue does no longer lie for the United States in covering up their presence in Japan and the Pacific. There is no longer need to stop the Soviet expansion into the Pacific on the edge of China.

Today everything has changed, and we must invent new political mechanisms to put an end to the Cold War phase in the Korean peninsula, which is no longer the Russian strategic “tooth” in the South China Sea, as was the case when the link between the USSR and Maoism became problematic.

Hence either an international committee is established for defining a definitive border between the two Koreas, or North Korea is continued to be granted the role of global strategic free rider – a role that North Korea can no longer play with increasing doses of military power and nuclear threat, otherwise it would no longer be credible.

This is certainly not the panacea for North Korea’s economy.

Hence, thanks to a global and innovative strategic vision, we must break the North Korean military spiral which,   paradoxically, is directly proportional to its domestic economic crisis.

The Neutral Nations Supervisory Commission (NNSC), established on the basis of the 1953 armistice, has now a mere role of communication between the two Koreas, so as to establish reliable relations between them.

Nevertheless, it is not certainly a body which can define a credible geopolitical project – this is not its purpose.

The second of the four aims of the North Korean nuclear build-up is to internationalize the crisis of the Korean peninsula (and of the region) so as to lead to the US or Chinese mediation.

Financial integration between (South) Korea and China – the free trade agreement between the two countries signed last year – is regarded as a threat by North Korea.

Actually North Korea is not entirely wrong: the above stated agreement envisages the creation in Shanghai of a stock market of securities directly traded in the two currencies, namely the won and the renminbi. It also envisages that the South Korean government may issue bonds and securities of its own sovereign debt directly in denominated in the Chinese currency – securities which can be later sold on the large Chinese financial market.

Therefore we can imagine a way to internationalize the North Korean sovereign debt on the Chinese or Russian markets, so as to stabilize the North Korean economy, thus making the Chinese and Russian strategic assurances stop the North Korean nuclear race.

A new Treaty between North Korea, South Korea – which is experiencing a period of financial deleveraging of foreign investors, or a capital flight which is also a form of economic war – the United States, the People’s Republic of China, the Russian Federation and, inevitably, the now useless European Union.

This group of countries should also be joined by Japan and the Indian Federation.

This Committee should establish: a) the internationally recognized border between the two Koreas, thus explicitly putting an end to the alleged hegemony claimed by both countries over the entire Korean peninsula; b) a joint North and South Korean Committee for economic development; c) a military committee supervising the North Korean military nuclear development, with the possibility for Russia – as was the case with Iran – to manage part of the fissile material; d) an international agreement for managing the North Korean nuclear material, which would be reached in the region by Russia and China.

Obviously with the guarantee of the North Korean national sovereignty.

For international analysts, a third reason for creating and expanding the North Korean nuclear arsenal would be the response to possible military attacks threatening the existence of the North Korean Party and State.

This is still a commitment of the Conference we propose, which should explicitly deny any political and military thereat against the North Korean regime, by gradually accepting it into the mainstream of international alliances and organizations.

A normalization which is good for everyone: for the United States, which will save on the deployment of their forces in the Asian region; for China, which will rebuild a preferential relationship with North Korea; for Russia, which could have an interest in developing economic and strategic relations with North Korea .

For Russia, which sets great store by trade with South Korea, the security of the North-Asian system must be ensured by a wide network of multilateral partnerships in various sectors: energy security, nuclear energy, transport safety, food safety and, finally, a multilateral guarantee on information security.

This is the right basis to start.

Finally, the fourth reason analyzed by experts to justify the North Korean significant nuclear build up is to offset, with nuclear weapons, the inevitable structural and conventional weakness of North Korea in relation to the United States and South Korea, two powers which, at various levels, are far superior to North Korea in terms of updating and quantity of their conventional forces.

We could even imagine a series of confidence building measures, managed by the Conference we have proposed, designed to simultaneously reduce the North and South Korean military potential and, hence, reshape the US strategy throughout the Pacific region in relation to North Korea.

This can be done if there is the political will and the effective presence of Russia and China. It is worth trying.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

East Asia

Standing up to China: Czech mayor sets a high bar

Dr. James M. Dorsey

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A Czech mayor’s refusal to endorse Beijing’s One China policy potentially sets a high bar as Western powers grapple with how to respond to allegations of excessive use of violence by police against Hong Kong protesters and the implications of leaked documents detailing a brutal crackdown in China’s north-western province of Xinjiang.

Prague mayor Zdenek Hrib rejected a sister city agreement between the Czech capital and Beijing in late October because it included a clause endorsing the One China policy, which implicitly recognizes China’s sovereignty over Taiwan, as well as Hong Kong and Tibet.

Mr. Hrib argued that the agreement was a cultural arrangement and not designed to address foreign policy issues that were the prerogative of the national government.

The mayor’s stance has since taken on added significance against the backdrop of US President Donald J. Trump’s signing of legislation that allows for the sanctioning of Hong Kong officials, embarrassing Communist party leaks that document repression in Xinjiang, the election of a new Sri Lankan government that intends to adopt a tougher policy towards China, and simmering anti-Chinese sentiment in Central Asia and beyond.

Mr. Hrib’s rejection was in fact a reflection of anti-Chinese sentiment in the Czech Republic as well as opposition to the pro-China policy adopted by Czech president Milos Zeman.

To be sure, Mr. Hrib, a 38-year old medical doctor who interned in Taiwan, was shouldering little political or economic risk given Czech public anger at China’s failure to fulfil promises of significant investment in the country.

On the contrary, Mr. Hrib, since becoming mayor in mid-2018, appears to have made it his pastime to put Mr. Zeman on the spot by poking a finger at China.

Mr. Hrib visited Taiwan in the first six months of his mayorship, flew the Tibetan flag over Prague’s city hall, and rejected a request by the Chinese ambassador at a meeting with foreign diplomats to send Taiwanese representatives out of the room.

Beijing’s cancellation of a tour of China by the Prague Philharmonic Orchestra in response to Mr. Hrib’s provocations forced Mr. Zeman to describe the Chinese retaliation as “excessive” and his  foreign minister, Tomas Petricek, to declare that “diplomacy is not conducted with threats.”

Perhaps more importantly, M. Hrib was taking a stand based on principles and values rather than interests. In doing so, he was challenging the new normal of world leaders flagrantly ignoring international law to operate on the principle of might is right.

“Our conscience is not for sale,” said Michaela Krausova, a leading member of the governing Pirate Party of the Prague city council. Ms. Krausova and Mr. Hrib’s party was founded to shake up Czech politics with its insistence on the safeguarding of civil liberties and political accountability and transparency.

While couched in terms of principle, Mr. Hrib’s stand strokes with newly installed Sri Lankan president Gotabaya Rajapaksa’s intention to wrest back control from China of the island’s strategic Hambantota port that serves key shipping lanes between Europe and Asia.

Hambantota became a symbol of what some critics have charged is Chinese debt trap diplomacy after Sri Lanka was forced to hand over the port to China in 2017 on a 99-year lease because the government was unable to repay loans taken to build it.

“I believe that the Sri Lankan government must have control of all strategically important projects like Hambantota. The next generation will curse our generation for giving away precious assets otherwise,” Mr. Rajapaksa said.

Fears of a debt trap coupled with the crackdown on Turkic Muslims in Xinjiang, which targets not only Uighurs, but also groups that trace their roots to Central Asian countries, have fuelled anti-Chinese sentiment in Kyrgyzstan, Tajikistan and Kazakhstan.

“Given that China is likely to continue to expand its presence, further irritating local publics, the temptation of opposition groups to exploit such anger will only grow. If that happens…the anti-Chinese demonstrations that have taken place to date will be only the prelude to a situation that could easily spiral out of control, ethnicizing politics in these countries still further,” said Central Asia scholar Paul Goble.

Beyond Xinjiang, anti-Chinese sentiment in Central Asia is fuelled by some of the same drivers that inform Czech attitudes towards China.

The shared drivers include unfulfilled promises, idle incomplete Chinese-funded infrastructure projects, widespread corruption associated with Chinese funding, and the influx of Chinese labour and materials at the expense of the local work force and manufacturers.

Beyond Xinjiang, Central Asians worry about potential debt traps. The Washington-based Center for Global Development listed last year two Central Asian nations, Kyrgyzstan and Tajikistan, as risking China-related “debt distress.”

Warned China and Central Asia scholar Ayjaz Wani: “Chinese principles in Central Asia are hegemonic. China has always interacted with Central Asian states without regarding their cultural identities, but according to its own vested interests… However, the ongoing anti-China sentiments may be coming to a tipping point.

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East Asia

Old wine in new bottles: Chinese containment policy in South Asia

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A lot of discussion in international relations scholarship is concentrated upon how US maximizing its security presence in the Asia-Pacific region. It is trying to contain, growing Chinese Influence to protect its national interest.It was described by former US President Barack Obama as a pivot Asia policy. But in the case of South Asia, United States is strengthening its ties with India to boost it as a force to contain Chinese emerging influence. It was termed by John J Mearsheimer as buck-passing in which a world superpower will give power and authority to another state to try to contain the influence of an emerging world hegemon. The Indo-US nuclear deal and former President Barack Obama’s remarks about the inclusion of India inthe United Nations Security council demonstrates that the United States is helping India to rise as the regional hegemon. India considers itself as an important actor at international level.It is increasing its political clout internationally but in South Asia, it can face a new kind of isolation. This is evident from the three recent events that occurred in a span of only 10 days in the first half of October

On 07th October Pakistan’s Prime Minister Imran Khan visited China with high-level delegation. He met there with Chinese President Xi Jinping and other important officials, it was his third visit to China since he came into power. During the meeting, both leaders, Imran Khan and Xi Jinping, discussed strengthening bilateral relations which are already at a higher level in terms of military and economic partnership. China is already working on a project to invest more than $50 billion under the name of China Pakistan Economic corridor let alone the cooperation on strategic and political issues. During the course of the visit, officials from both sides discussed Free Trade agreement which will be helpful in solving the problem of trade deficit for Pakistan. Total trade volume between China and Pakistan is around $15 billion in which Chinese export to Pakistan is of 13 billion. This Free Trade Agreement will open up about 90% of the Chinese market to Pakistan and will reduce trade deficit. During his meeting with Imran Khan, Xi Jinping accepted Kashmir as a disputed region and asked both parties to solve it through peaceful means.

All this happened just a few days before the visit of Chinese President Xi Jinping to India.Although both countries have made some progress on economy-related issues, no concrete efforts have been made to solve more radical issues like Indo-China border dispute in the northern Himalayan region. However more astonishing for India was that Xi Jinping visited Nepal after India. Nepal is a landlocked country crammed between two South Asia giants India and China. India is present on three sides of Nepal and considers it as its backyard. Both countries did have very solid relations and 60% of total Nepalese trade is done with India. In 2015 when Nepal adopted new constitution, relations between both countries soured. Although it was the internal matter of Nepal, India put an unofficial blockade for Nepal, which stopped all the supplies including food and medicine. Blockade continued for more than two months and it created a severe crisis because Nepal was already damaged by a strong earthquake in early 2015 in which more than 9000 people died. This blocked proved decisive in changing behavior of Nepalese leadership though they were complaining of Indian hegemonic role for many years. Nepal turned toward China for their needs. China also responded in a very positive way. Besides reconstructing earthquake effected areas, China also provided 1.03 million liters of fuel. In 2017 Nepal signed China’s Belt and Road initiative and pledged to construct a railway line which will connect China with Nepal directly. This initiated a new beginning in China-Nepal relations.

When Xi Jinping arrived at Katmandu, China by this time was thelargest foreign direct investor in Nepal.It was the first visit by any Chinese president in the last 23 years.During the course of his visit, 18 agreements were signed between Nepal and China, including a railway link between China and Nepal.

These three important tours in less than ten days present the new geopolitical reality of the region. Although the Chinese president visited India but this visit was sandwiched between Imran Khan’s visit to China and Xi Jinping’s visit to Nepal. Pakistan is an arch-rival of India in South Asia and Nepal which historically remained in the Indian sphere of influence,  is slowly slipping away from it.it clearly demonstrates containment policy by China in which China is progressively growing its influence in South Asian states. The Story does not end with Pakistan and Nepal but other South Asian states like Bangladesh and Sri Lanka now also have very strong ties with China.it represents in a new normal situation in which South Asian region is no longer dominated by India. Though India is showing to the world that it is solely protecting peace and stability in the region but reality has changed In fact South Asian states consider it as dominating power evident from its relation with Pakistan and blockade of Nepal. With growing Chinese influence in South Asia containment of India is now very much a reality.

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East Asia

How Australia is becoming China’s Australia

Sisir Devkota

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If it were not for China, Australia’s population inroad scheme would take a serious hit. Out of more than 0.7 million international students, more than 30% Chinese are pursuing degrees in universities. Australia lives along the values of  the Western culture, but when it comes to its economy, rather dishonourably; it has had to lean towards the East. Chinese consumerism compensates for a healthy Australian economy and while it stands stronger on its democratic values, Australia, now faces a paradoxical relationship with the Asian hegemon. For instance, it is quietly ignoring the protests in Hong Kong. During recent elections, the Australian Prime Minister was mocked on WeChat; his funny nuances were subject to ridicule in the Chinese social media.

Now, Australia is facing the task. It is fighting a battle to save its identity against a consumer band, governed by communist policies. China’s message is clear; an interference of any sort is not welcome, else the consequences are going to be economical. Emancipated Chinese students in Australia have been protesting against the government backlash in Hong Kong. Resultantly, back home in China, apartments were raided and their parents taught the lesson of conformity. A lesson of nationalism that has blossomed outside its territories. Australia is swallowing up the hypocrisy. On its own land, it cannot protect the values of freedom and democracy.

Wang LiQiang or as he would like to be known as “William”, took to the Australian authorities for his involvement in spying activities. In his own admission, William was conducting intelligence operations and most significantly, assassinations on Australian soil. William is only one among high profile spies that have been operating in Australia. Ironically, his testament sufficiently reflects the Australian attitude towards Chinese interference, which has essentially been negligent and non-conversational. Notably, William’s particular mention about operating a system of political donation will nevertheless disturb Australian administrators. They will realize that it is only about time when China will explicitly begin to reassert its influence. The police did not find Wang Li Qiang; instead, he volunteered to surrender. Especially, coming from a senior Chinese operative, the message could not be clearer.

On the outset, China and Australia maintain a well-documented “good relationship”. However, administrative hierarchies in Canberra are also accused of implying a very positive attitude towards presenting and defending bilateral ties. As much as economic interests have motivated the Australian behaviour of non-acceptance, politicians do not shy away from painting an over simplified picture of Chinese problems that are realistically, complex in nature. As Prime Minister Scott Morrison handled the allegations of a Chinese backed ring that was trying to plot a spy in the parliament; the government has tried too hard to overlook the obvious. Mr. Morrison urged his citizens to not draw anxious conclusions, instead; he suggested that Australia would need to be vigilant from the threats that it faced more broadly. The substitutability of discourse that is apparent in Australian politics, marks a rather gifted trade-off for China and its actions. Andrew Hastie, parliamentary head of intelligence and security, claimed that such incidents did not surprise him. As more evidences would suggest, Chinese interference was knocking at the doors.

In terms of China, there are two faces of Australian political rhetoric. One that is motivated by the larger interests in the administrative chairs of governance, overlooking the infiltration for personal benefits. Secondly, the critiques emanating from opposition politicians and the likes of intelligence chiefs, for instance ASIO’s former Directorate General, Duncan Lewis, warned that China would take over Australia in a matter of time. Elsewhere in the borders of the communist giant, two Australian MP’s were denied travel entry, citing largely undetermined reasons. With a population of merely 25 million inhabitants, 1.8 million Chinese students have migrated to Australia for education. The dragon is marching towards the continent, in a first, the troops are ready on site.

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