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Donald Trump’s America and China

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[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] A [/yt_dropcap]ccording to official news agencies, the recent phone call of February 8 last and the subsequent letter by President Trump to his Chinese counterpart, Xi Jinping, was “long” and “extremely cordial”.

In particular, official sources recall that, just upon the Chinese leader’s request, the US President reaffirmed he would honour the so-called “One China” policy in the US bilateral and multilateral relations, which means that the United States do not oppose – now or in the future – the Chinese ambitions over Taiwan that China still considers the “renegade province.”

As reported by Chinese sources, President Trump also formulated to the Chinese people his wishes for the New Lunar Year – the year of the Rooster, running from January 28, 2017 to February 16, 2018 – and for the upcoming Lantern Festival, celebrated on the fifteenth day of the first month of the new year.

Those who really know how to make foreign policy are always very attentive to symbols and traditions. They are not befuddled by GDP percentages or daily talk, but set great store by the various peoples’ symbols and old traditions, which are the fabric of each State community.

According to Xi Jinping who made his first phone call to President Trump, the two major countries, namely China and the United States, are bound to cooperate to manage the world’s fate. The Chinese leader also defined the substantial and non-formal mainstay of China’s foreign policy in recent years: the reaffirmation of the peaceful, but primary role played by China among all world countries.

The concept of a “win-win” relationship, the cornerstone of Xi Jinping’s foreign policy, was expressed – for the first time – by the Chinese President in his speech delivered at the Moscow Institute for International Relations in March 2013.

Later the concept was reiterated and applied in China’s State visits to Serbia, Poland and Uzbekistan last June, as well as in the Shanghai Cooperation Organization’s 12th Summit – and this is certainly not a coincidence, but a symbol.

In Xi Jinping’s mind, the “win-win” relationship between States can be defined as an organism consisting of a skeleton of political mutual trust, blood vessels of economic cooperation and nerves of cultural exchanges, with concrete cooperation projects as its cellular tissue.

Within this intellectual and political horizon, when the countries develop a clear understanding of the international situation and unite to meet security and economic challenges, they form a community shouldering responsibility together, namely a “responsibility community”. When they respect the various cultures and political systems, they form a group sharing a common fate, namely a “fate community”.

Finally, in Xi Jinping’s mind, a “win-win” relationship enables the traditional multilateral and bilateral treaties to work better.

This will be exactly China’s great offer to the European Union, which is based on three levels: the EU as the nerve centre of world economy, as well as a great Mediterranean region – and, in the future, China will focus on the Mare Nostrum – and finally as a strategic factor for rebalancing Asia, the United States and the emerging countries.

I wish there was – within the European Union – at least some strategic and geopolitical thinking about Europe living up to China’s.

The theory of “win-win” relations also means that China plans to extend its theory of “creative, coordinated and green” development to the rest of the world.

This is exactly the conceptual foundation of the Belt and Road Initiative that Xi Jinping launched by following up Li Keqiang’s policy line during his state visits to Asia and Europe of September and October 2013.

It is worth noting, however, that while Trump only called the Heads of State and Government of allied and friendly States, in the case of Xi Jinping he even wrote a letter – which is clearly a sign of great respect for China and its government.

The tension recently mounted between President Trump and the Australian Prime Minister, Turnbull, is the last thing that China wishes to see. In fact, China is very interested in a strategic – and hence economic, political and military – relationship with Australia. In particular, it wants a special link to be created with the United States through that country.

Hence, in Xi Jinping’s mind, America is a factor of stability and multipolar balance, in a Pacific Ocean where China is expanding northwards and is establishing new “win-win” relations and bonds with all coastal countries and with Japan, in particular.

Trump had also alarmed the Chinese government by calling the President of the Republic of Taiwan, Tsai Ing-wen, last December.

Furthermore, Donald Trump repeatedly stated – during the election campaign and after rising to power – he would impose additional tariffs on Chinese imports to the United States, by accusing China of artificially devaluing its currency so as to stimulate its exports and “stealing jobs from Americans” – just to recall the terminology used by the future President during the election campaign.

Furthermore, the Secretary of State, Rex Tillerson, stated in the Senate that China should not have free access to the artificial islands it built in the South China Sea. He also stated that the United States would anyway protect the free waterways between the Pacific Ocean and the China Sea.

However, is it true that China manipulates its currency?

Let us see whether this is true.

The (Chinese) capital is fleeing the country because international investors – and many of these are also Chinese – are not optimistic about the future of the Chinese economy.

The pace of growth is slow, the lowest rate in 25 years. A reduced growth rate, which is recorded for many good and useful reasons. In fact, the government is reducing the interest rate of government bonds and is also cooling real estate prices, as well as implementing reforms that will reduce excess production capacity and increase the production efficiency of public companies.

Hence a vicious cycle has been triggered off, which shows that the market is not suitable for playing the role of supreme judge of economies.

Therefore investors are selling yuan and buying US dollars or other hard currencies. This creates downward pressure on the yuan exchange rate, which further stimulates the sale of Chinese currency and the purchase of US dollars and other hard currencies.

If there is capital fleeing the country, the yuan lowers its exchange rate, as always happens in these cases.

Since the time of double devaluation in August 2015, 1.2 trillion US dollars have left China. The Chinese currency reserves dropped by as many as 800 billion dollars in two years, just to defend the yuan parity – dollars obviously sold only to support the yuan.

Over time, the Chinese government has blocked the companies’ yuan transfers until rebalancing revenue and expenditure. It has also restricted the purchase of foreign currency by Chinese traders and businessmen, stimulated State enterprises to sell foreign currency and blocked the use of credit cards up 5,000 US dollars of spending.

These efforts now seem to be successful.

The latest data shows that capital is coming back to China and, therefore, the currency value should stabilize quickly.

Hence it is true that the Chinese government is “manipulating” its currency – although rescuing its reforms, economic stability and domestic policy – but said manipulation takes place upwards and not downwards. Therefore there is no yuan devaluation which favours Chinese exports in the United States or in the rest of the world.

Furthermore, it is worth recalling that the accusations of currency manipulation were also typical of Barack Obama and Hillary Clinton.

It is also worth recalling, however, that the Sino-US trade deficit is currently 232.25 billion dollars and that this is a problem that must be solved anyway.

In other words, the government keeps the yuan value “up”, thus de facto subsidizing imports from China.

Furthermore, China needs to provide jobs to a much greater mass of unemployed people than the US workforce and it does not want to encourage downward competition by Japan, India or Vietnam.

Moreover, Donald Trump’s economic positions, or what the Republican candidate maintained during the election campaign, are such as to strengthen the dollar, while the US economy is still the locomotive of global recovery.

And we assume it will remain so for long time.

In Trump’s mind, the maximum income tax rate will be   33% as against the current 39.6%; the real estate tax will be abolished altogether but, anyway, no company shall pay over 15% of their income in taxes.

On the other hand, however, there will no longer be domestic tax havens or tax tricks and stratagems, which has greatly alarmed many traditional voters and especially funders of the Republican Party.

Moreover, President Trump has threatened China also with regard to intellectual property and subsidies to exports he deems illegal.

Another theme in common with the previous Administration. In partial contradiction with these opinions, Trump has also supported the idea of transforming the United States into a more attractive country for foreign investment than China itself, by also trying to reduce the US public debt so as to avoid the hidden pressure of China, which is still the largest holder of US Treasury Bonds.

However, as international economic experts show, the United States record an aggregate trade surplus with 20 of the countries with which they have trade agreements, while 1 billion US dollars worth of exports supports approximately 6,000 US jobs, bearing in mind the fact that the jobs resulting from export activities are paid, on average, 18% more than the others.

Hence, finally President Trump will greatly change the recent Trans-Pacific Partnership (TTP), i.e. the trade agreement between the United States, Brunei, Australia, Chile, Canada, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

However, currently the export tariffs of North American products to Asia are too high and the cooling of the TTP would largely favour only China.

No one in Trump’s administration likes TTP and the President prefers bilateral trade agreements rather than multipolar economic alliances.

Hence the paradox of the bilateral situation between the United States and China is the following: if the yuan rises – as it is expected to happen soon – the US dollar will fall significantly and it will be easier for President Trump to stimulate US exports.

And, for the law of unintended consequences, the freezing of TTP could become the primary stimulus to the recovery of the Chinese economy.

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. “

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Early Elections in Canada: Will the Fourth Wave Get in the Way?

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On August 15, Justin Trudeau, the Prime Minister of Canada and leader of the Liberal Party, announced an early parliamentary election and scheduled it for September 20, 2021. Canadian legislation allows the federal government to be in power up to 5 years, so normally, the elections should have been held in 2023. However, the government has the right to call early elections at any time. This year, there will be 36 days for the pre-election campaigns.

At the centre of the Liberals’ election campaign is the fight against the COVID-19 epidemic in Canada and the economic recovery. The coronavirus has also become a motivator for early elections. In his statement, Justin Trudeau emphasised that “Canadians need to choose how we finish the fight against COVID-19 and build back better. Canadians deserve their say, and that’s exactly what we are going to give them.” Thus, the main declared goal of the Liberals is to get a vote of confidence from the public for the continuation of the measures taken by the government.

The goal, which the prime minister did not voice, is the desire of the Liberal Party to win an absolute majority in the Parliament. In the 2019 elections, the Liberals won 157 seats, which allowed them to form a minority government, which is forced to seek the support of opposition parties when making decisions.

The somewhat risky move of the Liberals can be explained. The Liberals decided to take advantage of the high ratings of the ruling party and the prime minister at the moment, associated with a fairly successful anti-COVID policy, hoping that a high level of vaccination (according to official data, 71% of the Canadian population, who have no contraindications, are fully vaccinated and the emerging post-pandemic economic recovery will help it win a parliamentary majority.

Opinion polls show that the majority of Canadians approve Trudeau’s strategy to overcome the coronavirus pandemic. Between the 2019 elections and the onset of the COVID-19 pandemic, Trudeau’s government was unpopular, with ratings below 30%. Unlike Donald Trump, Trudeau’s approval rating soared after the outbreak of the pandemic to 55%. During the election campaign, the rating of the Liberal Party decreased and was 31.6% on September 16, which reduces the chances of a landslide victory.

Trudeau left unanswered the question of whether he’d resign if his party fails to win an absolute majority in the elections.

Leaders of opposition parties—the Conservative Party, the New Democratic Party, Bloc Québécois, and the Green Party—criticised Trudeau’s decision to call early elections, considering the decision inappropriate for the timing and situation with regard to the risk of the fourth wave of the coronavirus epidemic. They stressed that the government’s primary task should be taking measures to combat the pandemic and restore the economy, rather than trying to hold onto power.

The on-going pandemic will change the electoral process. In the event of a fourth wave, priority will be given to postal voting. Liberal analysts are concerned that the registration process to submit ballots by mail could stop their supporters from voting, thereby undermining Trudeau’s drive to reclaim a majority government. However, postal voting is the least popular among voters of the Conservative Party, and slightly more popular among voters of the Liberal and New Democratic parties. The timeframe for vote-counting will be increased. While ballots are usually counted on the morning after election day, it can take up to five days for postal voting.

One of the key and most attractive campaign messages of the Liberal Party is the reduction of the average cost of childcare services. Liberals have promised to resolve this issue for many years, but no active action has been taken. Justin Trudeau noted that the pandemic has highlighted the importance of this issue.

As in the 2019 elections, the Liberal Party’s key rival will be the Conservative Party, led by new leader Erin O’Toole. The Conservative Party’s rating a five days before the election was 31.3%. Conservatives suggest a different approach to childcare—providing a refundable child tax subsidy that covers up to 75% of the cost of kindergarten for low-income families. Trudeau has been harshly criticised by the Conservatives in connection with the scale of spending under his leadership, especially during the pandemic, and because of billion-dollar promises. In general, the race will not be easy for the conservative O’Toole. This is the first time he is running for the post of prime minister, in contrast to Justin Trudeau. Moreover, the Conservative Party of Canada is split from within, and the candidate is faced with the task of consolidating the party. The Conservative will have to argue against the billion-dollar promises which were made by the ruling Liberals before the elections.

The leaders of the other parties have chances to increase their seats in Parliament compared to the results of the 2019 elections, but they can hardly expect to receive the necessary number of votes to form a government. At the same time, the personal popularity of Jagmeet Singh, the candidate from the New Democratic Party, is growing, especially among young people. The level of his popularity at the end of August was 19.8%. Singh intends to do everything possible to steal progressive voters from the Liberal Party and prevent the formation of a Liberal-majority government. Singh will emphasise the significant role of the NDP under the minority government in the context of the COVID-19 pandemic and highlight that it was the New Democratic Party that was able to influence government decisions and measures to support the population during the pandemic.

Bloc Québécois leader Yves-François Blanchet, whose popularity level was 6.6%, intends to increase the Bloc’s presence in Parliament and prevent the loss of votes in the province of Quebec in favour of the Liberal Party. According to him, it is fundamentally important to protect the French language and the ideas of secularism. The Bloc Québécois is also not interested in the formation of a majority government by the Liberals.

Green Party leader Annamie Paul is in a difficult position due to internal party battles. Moreover, her rating is low: 3.5%. Higher party officials have even tried to pass a no-confidence vote against her. Annamie Paul’s goal is, in principle, to get a seat in Parliament in order to be able to take part in voting on important political issues. The Greens are focused on climate change problems, the principles of social justice, assistance to the most needy segments of the population, and the fight against various types of discrimination.

Traditionally, foreign policy remains a peripheral topic of the election campaign in Canada. This year, the focus will be on combating the COVID-19 epidemic, developing the social sphere, and economic recovery, which will push foreign policy issues aside even further.

The outcome of the elections will not have a significant impact on Russian-Canadian relations. An all-party anti-Russian consensus has developed in Canada; none of the parties have expressed any intention of developing a dialogue with Russia.

From our partner RIAC

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Interpreting the Biden Doctrine: The View From Moscow

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Official White House Photo by Carlos Fyfe

It is the success or failure of remaking America, not Afghanistan, that will determine not just the legacy of the Biden administration, but the future of the United States itself.

The newly unveiled Biden doctrine, which renounces the United States’ post-9/11 policies of remaking other societies and building nations abroad, is a foreign policy landmark. Coming on the heels of the U.S. withdrawal from Afghanistan, it exudes credibility. Indeed, President Biden’s moves essentially formalize and finalize processes that have been under way for over a decade. It was Barack Obama who first pledged to end America’s twin wars—in Iraq and Afghanistan—started under George W. Bush. It was Donald Trump who reached an agreement with the Taliban on a full U.S. military withdrawal from Afghanistan in 2021. Both Obama and Trump also sought, albeit in strikingly different ways, to redirect Washington’s attention to shoring up the home base.

It is important for the rest of the world to treat the change in U.S. foreign policy correctly. Leaving Afghanistan was the correct strategic decision, if grossly overdue and bungled in the final phases of its implementation. Afghanistan certainly does not mean the end of the United States as a global superpower; it simply continues to be in relative and slow decline. Nor does it spell the demise of American alliances and partnerships. Events in Afghanistan are unlikely to produce a political earthquake within the United States that would topple President Biden. No soul searching of the kind that Americans experienced during the Vietnam War is likely to emerge. Rather, Washington is busy recalibrating its global involvement. It is focusing even more on strengthening the home base. Overseas, the United States is moving from a global crusade in the name of democracy to an active defense of liberal values at home and Western positions abroad.

Afghanistan has been the most vivid in a long series of arguments that persuaded Biden’s White House that a global triumph of liberal democracy is not achievable in the foreseeable future. Thus, remaking problematic countries—“draining the swamp” that breeds terrorism, in the language of the Bush administration—is futile. U.S. military force is a potent weapon, but no longer the means of first resort. The war on terror as an effort to keep the United States safe has been won: in the last twenty years, no major terrorist attacks occurred on U.S. soil. Meantime, the geopolitical, geoeconomic, ideological, and strategic focus of U.S. foreign policy has shifted. China is the main—some say, existential—challenger, and Russia the principal disrupter. Iran, North Korea, and an assortment of radical or extremist groups complete the list of adversaries. Climate change and the pandemic have risen to the top of U.S. security concerns. Hence, the most important foreign policy task is to strengthen the collective West under strong U.S. leadership.

The global economic recession that originated in the United States in 2007 dealt a blow to the U.S.-created economic and financial model; the severe domestic political crisis of 2016–2021 undermined confidence in the U.S. political system and its underlying values; and the COVID-19 disaster that hit the United States particularly hard have all exposed serious political, economic, and cultural issues and fissures within American society and polity. Neglecting the home base while engaging in costly nation-building exercises abroad came at a price. Now the Biden administration has set out to correct that with huge infrastructure development projects and support for the American middle class.

America’s domestic crises, some of the similar problems in European countries, and the growing gap between the United States and its allies during the Trump presidency have produced widespread fears that China and Russia could exploit those issues to finally end U.S. dominance and even undermine the United States and other Western societies from within. This perception is behind the strategy reversal from spreading democracy as far and wide as Russia and China to defending the U.S.-led global system and the political regimes around the West, including in the United States, from Beijing and Moscow.

That said, what are the implications of the Biden doctrine? The United States remains a superpower with enormous resources which is now trying to use those resources to make itself stronger. America has reinvented itself before and may well be able to do so again. In foreign policy, Washington has stepped back from styling itself as the world’s benign hegemon to assume the combat posture of the leader of the West under attack.

Within the collective West, U.S. dominance is not in danger. None of the Western countries are capable of going it alone or forming a bloc with others to present an alternative to U.S. leadership. Western and associated elites remain fully beholden to the United States. What they desire is firm U.S. leadership; what they fear is the United States withdrawing into itself. As for Washington’s partners in the regions that are not deemed vital to U.S. interests, they should know that American support is conditional on those interests and various circumstances. Nothing new there, really: just ask some leaders in the Middle East. For now, however, Washington vows to support and assist exposed partners like Ukraine and Taiwan.

Embracing isolationism is not on the cards in the United States. For all the focus on domestic issues, global dominance or at least primacy has firmly become an integral part of U.S. national identity. Nor will liberal and democratic ideology be retired as a major driver of U.S. foreign policy. The United States will not become a “normal” country that only follows the rules of realpolitik. Rather, Washington will use values as a glue to further consolidate its allies and as a weapon to attack its adversaries. It helps the White House that China and Russia are viewed as malign both across the U.S. political spectrum and among U.S. allies and partners, most of whom have fears or grudges against either Moscow or Beijing.

In sum, the Biden doctrine does away with engagements that are no longer considered promising or even sustainable by Washington; funnels more resources to address pressing domestic issues; seeks to consolidate the collective West around the United States; and sharpens the focus on China and Russia as America’s main adversaries. Of all these, the most important element is domestic. It is the success or failure of remaking America, not Afghanistan, that will determine not just the legacy of the Biden administration, but the future of the United States itself.

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AUKUS aims to perpetuate the Anglo-Saxon supremacy

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Image credit: ussc.edu.au

On September 15, U.S. President Joe Biden worked with British Prime Minister Boris Johnson and Australian Prime Minister Scott Morrison together to unveil a trilateral alliance among Australia-U.K.-U.S. (AUKUS), which are the major three among the Anglo-Saxon nations (also including Canada and New Zealand). Literally, each sovereign state has full right to pursue individual or collective security and common interests. Yet, the deal has prompted intense criticism across the world including the furious words and firm acts from the Atlantic allies in Europe, such as France that is supposed to lose out on an $40-billion submarine deal with Australia to its Anglo-Saxon siblings—the U.K. and the U.S.

               Some observers opine that AUKUS is another clear attempt by the U.S. and its allies aggressively to provoke China in the Asia-Pacific, where Washington had forged an alliance along with Japan, India and Australia in the name of the Quad. AUKUS is the latest showcase that three Anglo-Saxon powers have pretended to perpetuate their supremacy in all the key areas such as geopolitics, cybersecurity, artificial intelligence, and quantum computing. In short, the triple deal is a move designed to discourage or thwart any future Chinese bid for regional hegemony. But diplomatically its impacts go beyond that. As French media argued that the United States, though an ally of France, just backstabs it by negotiating AUKUS in secret without revealing the plan. Given this, the deal among AUKUS actually reflects the mentality of the Anglo-Saxon nations’ superiority over others even if they are not outrageously practicing an imperialist policy in the traditional way.

               Historically, there are only two qualified global powers which the Europeans still sometimes refer to as “Anglo-Saxon” powers: Great Britain and the United States. As Walter Mead once put it that the British Empire was, and the United States is, concerned not just with the balance of power in one particular corner of the world, but with the evolution of what it is today called “world order”. Now with the rise of China which has aimed to become a global power with its different culture and political views from the current ruling powers, the Anglo-Saxon powers have made all efforts to align with the values-shared allies or partners to create the strong bulwarks against any rising power, like China and Russia as well. Physically, either the British Empire or the United States did or does establish a worldwide system of trade and finance which have enabled the two Anglo-Saxon powers to get rich and advanced in high-technologies. As a result, those riches and high-tech means eventually made them execute the power to project their military force that ensure the stability of their-dominated international systems. Indeed the Anglo-Saxon powers have had the legacies to think of their global goals which must be bolstered by money and foreign trade that in turn produces more wealth. Institutionally, the Anglo-Saxon nations in the world—the U.S., the U.K, Canada, Australia and New Zealand—have formed the notorious “Five eyes alliance” to collect all sorts of information and data serving their common core interests and security concerns.

This is not just rhetoric but an objective reflection of the mentality as Australian Foreign Minister Payne candidly revealed at the press conference where she said that the contemporary state of their alliance “is well suited to cooperate on countering economic coercion.” The remarks imply that AUKUS is a military response to the rising economic competition from China because politics and economics are intertwined with each other in power politics, in which military means acts in order to advance self-interested economic ends. In both geopolitical and geoeconomic terms, the rise of China, no matter how peaceful it is, has been perceived as the “systematic” challenges to the West’s domination of international relations and global economy, in which the Anglo-Saxon superiority must remain. Another case is the U.S. efforts to have continuously harassed the Nord Stream 2 project between Russia and Germany.

Yet, in the global community of today, any superpower aspiring for pursuing “inner clique” like AUKUS will be doomed to fail. First, we all are living in the world “where the affairs of each country are decided by its own people, and international affairs are run by all nations through consultation,” as President Xi put it. Due to this, many countries in Asia warn that AUKUS risks provoking a nuclear arms race in the Asian-Pacific region. The nuclear factor means that the U.S. efforts to economically contain China through AUKUS on nationalist pretexts are much more dangerous than the run-up to World War I. Yet, neither the United States nor China likes to be perceived as “disturbing the peace” that Asian countries are eager to preserve. In reality, Asian countries have also made it clear not to take either side between the power politics.

Second, AUKUS’s deal jeopardizes the norms of international trade and treaties. The reactions of third parties is one key issue, such as the French government is furious about the deal since it torpedoes a prior Australian agreement to purchase one dozen of conventional subs from France. Be aware that France is a strong advocate for a more robust European Union in the world politics. Now the EU is rallying behind Paris as in Brussels EU ambassadors agreed to postpone preparations for an inaugural trade and technology council on September 29 with the U.S. in Pittsburgh. European Commission President Ursula von der Leyen declared in a strong manner that “since one of our member states has been treated in a way that is not acceptable, so we need to know what happened and why.” Michael Roth, Germany’s minister for European affairs, went even further as he put it, “It is once again a wake-up call for all of us in the European Union to ask ourselves how we can strengthen our sovereignty, how we can present a united front even on issues relevant to foreign and security policy.” It is the time for the EU to talk with one voice and for the need to work together to rebuild mutual trust among the allies.

Third, the deal by AUKUS involves the nuclear dimension. It is true that the three leaders have reiterated that the deal would be limited to the transfer of nuclear propulsion technology (such as reactors to power the new subs) but not nuclear weapons technology. Accordingly, Australia remains a non-nuclear country not armed with such weapons. But from a proliferation standpoint, that is a step in the direction of more extensive nuclear infrastructure. It indicates the United States and the U.K. are willing to transfer highly sensitive technologies to close allies. But the issue of deterrence in Asia-and especially extended deterrence-is extremely complicated since it will become ore so as China’s nuclear arsenal expands. If the security environment deteriorates in the years ahead, U.S. might consider allowing its core allies to gain nuclear capabilities and Australia is able to gain access to this technology as its fleet expands. Yet, it also means that Australia is not a non-nuclear country any more.

In brief, the deal itself and the triple alliance among AUKUS will take some years to become a real threat to China or the ruling authorities of the country. But the deal announced on Sept. 15 will complicate Chinese efforts to maintain a peaceful rise and act a responsible power. Furthermore, the deal and the rationales behind it is sure to impede China’s good-will to the members of AUKUS and the Quad, not mention of their irresponsible effects on peace and prosperity in the Asia-Pacific region.

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