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The Belt and Road Initiative: China’s future geostrategy

Giancarlo Elia Valori

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[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] A [/yt_dropcap]s is also the case with Chinese traditional philosophy, present, future and past always tend to coincide in one single choice in the Chinese strategic vision.In Xi Jinping’s initial proposals for the “Belt and Road Initiative” – or, to use the official terminology, the Silk Road Economic Belt and the 21st Century Maritime Silk Road, which were outlined by him on two occasions between September and October 2013 – he starts from two evaluations, namely a strategic evaluation and another one having an immediate interest.

The Maritime Silk Road was actually outlined for the first time by the Chinese President in a speech to the Indonesian Parliament in October 2013, while the Terrestrial Silk Road was first quoted by Xi Jinping in his State visits to Central Asia in September 2013.

The first long-term strategic idea is based on the design of a Greater Eurasia, hinged around Russia, China and the great countries of the Heartland, namely the “world island” as Sir Halford Mackinder called it.

The second most immediate evaluation is that the world has not yet emerged from the great economic crisis which began in 2008.

The Thunder and the River, namely the moment of immediate concreteness and the infinite flow of Time – just to use two concepts and images of Taoism.

But where does the Terrestrial Silk Road pass and which seas are connected by the Maritime Silk Road?

Six corridors have been designed in great detail and paying specific attention to local characteristics: firstly, the New Eurasian Land Bridge, from Western China to Western Russia, which in the future will connect the city of Lyanyungang, in the Jangsu Province, with the Dutch city of Rotterdam.

It is mainly a railway line, with a link between Bulgaria and Turkey, crossing inevitably the Iranian territory.

Secondly the China-Mongolia-Russia Corridor, from Northern China to Eastern Russia; thirdly the China-Central Asia-Western Asia Corridor, from the territory of the People’s Republic of China to Turkey. Fourthly the Corridor from Southern China to the Indochinese peninsula up to Singapore; fifthly the China-Pakistan Corridor where, in the Gwadar port recently purchased by China, there will be one of the links between the Terrestrial and the Maritime Silk Roads. Sixthly the Bangladesh-China-India-Myanmar Corridor and finally the very long Maritime Silk Road, from the Chinese coast to Singapore up to the Mediterranean.

At strategic and economic levels, the individual projects are manifold and significant. Russia, in particular, together with China, is focused on establishing economic and financial alliances allowing to reach a great geopolitical result, which is currently the same both for Russia and China: reduced EU and NATO pressure on its Western and Southern borders and the related expansion of the Eurasian area of influence, precisely the New Greater Eurasia, towards the Mediterranean and our own Eurasian Peninsula, namely Western Europe.

While the United States failed to reach the TTIP agreements with the EU, which negotiated that dossier jointly, with the two Silk Roads, Russia and China will make to the EU and the entire Mediterranean region a proposal they will not be able to refuse – otherwise the current economic recession will persist – a proposal also combined with North America’s and European Central Bank’s monetary expansion policies.

With the two Silk Roads, the United States will be cut down to size drastically.

In fact, Xi Jinping policy lines on the “Belt and Road Initiative” point to the implementation of the old Maoist project of the “Three Worlds”: the World of “global peripheries”, which will have only China as beacon and geopolitical and military representation; the First World which is marginalized also militarily and finally the Second World, the world of the old Soviet universe, that the collapse of “revisionist imperialism” – as Mao Zedong would have called it – has made a stable ally of the new Chinese geopolitics.

Moreover, as early as 2001, the Russian Federation already established a Eurasian Economic Community with Belarus, Kazakhstan, Kyrgyzstan and Tajikistan. In 2010 Belarus and Kazakhstan created a customs union and finally, in 2011, those same countries signed a Declaration on Eurasian Economic Integration and a new Treaty establishing the Eurasian Economic Commission.

Furthermore, in 2012, the decision was also taken to launch the Eurasian Economic Union.

The future integration process will be centred on the Shanghai Cooperation Organization (SCO), ASEAN and hence the two Chinese “Initiatives”.

The aim is to limit the world recession damage but, above all, to mitigate the effects of Western sanctions on the Russian Federation.

Putin wants to quickly merge all strategic-economic integration initiatives into one single process, which would also optimize the anti-cyclical effects of all these initiatives and would provide the opportunity for a “Eurasian phase” of Russian politics – a phase that Vladimir Putin has already announced.

It is worth noting, however, that, by proposing the two integrated Silk Roads, China does not intend to establish binding political mechanisms or to recreate a series of military and strategic buffer zones around China.

Xi Jinping has been very clear about it.

In fact, China clearly wants a horizontal, non-vertical integration and it always clarifies that there is no hegemonic plan inherent in the Two Silk Roads.

Nor a political one in the strict sense of the term.

Quite the reverse. Indeed, the issue lies in putting an end to the US “hegemony”, not in creating others.

Moreover, macroeconomic data is already very interesting: considering the 2014 data, trade within the SCO region has increased by ten times.

It is worth recalling that in the SCO region (Russia, China, Afghanistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, India, Iran, Mongolia and Pakistan) 3.92 billion people live (according to 2014-2015 data), namely 54,4% of world’s population, that generates an aggregate GDP accounting for 32.2% of the global gross domestic product.

It is also worth noting that the Economic Silk Road begins in Xinjiang (hence the importance and the mortal danger represented by the Uighur jihad) and reaches the Caspian Sea, the Baltic Sea, the Black Sea, Ukraine and Romania up to Europe and the Mediterranean.

The meeting of the Beijing Forum held in May was attended by over thirty Heads of State and Government, as well as experts from 110 countries, including the United States. Sixty-five countries are already directly involved in the operations, while, in recent days, many Latin American countries have adhered to the project.

South America no longer wants to have “open veins” – just to use the title of a famous book by Eduardo Galeano, Open Veins of Latin America: Five centuries of the Pillage of a Continent .

Xi Jinping has also promised additional 100 billion yuan (equivalent to 14.5 billion US dollars) of new investment in road infrastructure, while China will also provide 60 billion yuan (8.7 billion US dollars) to fund the countries and the international organizations which participate in the project by creating infrastructure.

Furthermore, with specific reference to the two Silk Roads, China has already pledged 250 billion yuan worth of loans by the China Development Bank, as well as additional 130 billion yuan of the Export-Import Bank of China, further two billion yuan in food aid and one billion US dollars for the South-South cooperation fund.

Hence the total sum amounts to 480 billion yuan, while since 2015 the Russian Federation has replaced Saudi Arabia as the first oil exporter to China, by settling payments with the two national currencies, thus avoiding recourse to the US dollar.

Over the last seven years, Russian oil exports to China have more than doubled, with 550,000 barrels per day, while the area in which the US dollar is used gets increasingly narrower: currently only in the Third World does the US currency still reign, but it is a phenomenon that is bound to last for a short lapse of time.

In a situation in which the US public debt amounts to 20 trillion dollars, the Federal Reserve tends to raise interest rates in a world of zero or even negative interest rates and public spending is expected to rise under Trump’s Presidency, the 1971 old wisecrack by John Connally, the former Head of the Federal Reserve, is still topical: “The dollar is our currency, but it is your problem”.

In recent times, the dollar value in word trade has increased by about 25%.

It is currently 40% higher than in 2011.

Goldman Sachs also claims that the dollar is largely overvalued as against the other major currencies.

And 60% of the global economy is still somehow linked to the US currency value.

Hence we are no longer faced with the “Triffin dilemma”, namely the mechanism whereby as long as the US dollar remains the global reserve currency, trade and production create an additional demand for dollars.

If that happened, however, there should be a constant deficit in the US balance of payments, thus putting pressure on that currency and making it progressively unnecessary for trade.

Now we are in a similar situation, even though Triffin made reference to a context still governed by the Bretton Woods Agreements.

Moreover, the entry of the Chinese currency into the World Bank’s Special Drawing Rights system in 2016 currently allows larger yuan fluctuations. Hence considering this yuan ability, in particular, a free yuan is an excellent way to further internationalize the Chinese economy.

The steps of this process have already been marked: in 2010, the World Bank President, Zoellnick, assumed a new global gold-based financial system – the one that Keynes called the “tribal residue” of the economy.

In 2012, Iran accepted the yuan as means of payment for its oil.

In 2013 the Chinese Central Bank stated it no longer needed to accumulate reserves in foreign currencies. In 2014 gold could be bought on the Shanghai Stock Exchange with the yuan and in 2015 Russia accepted the yuan as means of payment for its oil supplies to China.

According to official statements, the Chinese Central Bank’s gold reserves have increased by almost 56% over the last three years.

Hence, if we consider all these data and statistics and we assess their strategic relevance, we can understand how and to what extent the Silk Road, as well as the Chinese and global Belt and Road Initiative will be the geopolitical, economic and financial paradigm of the near future.

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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Deeper meanings of the Hong Kong protests: Is China a gamechanger or yet another winner?

Anis H. Bajrektarevic

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Does our history only appear overheated, while it is essentially calmly predetermined? Is it directional or conceivable, dialectic and eclectic or cyclical, and therefore cynical? Surely, our history warns. Does it also provide for a hope? Hence, what is in front of us: destiny or future?

Theory loves to teach us that extensive debates on what kind of economic system is most conductive to human wellbeing is what consumed most of our civilizational vertical. However, our history has a different say: It seems that the manipulation of the global political economy – far more than the introduction of ideologies – is the dominant and arguably more durable way that human elites usually conspired to build or break civilizations, as planned projects. Somewhere down the process, it deceived us, becoming the self-entrapment. How?

One of the biggest (nearly schizophrenic) dilemmas of liberalism, ever since David Hume and Adam Smith, was an insight into reality: Whether the world is essentially Hobbesian or Kantian. As postulated, the main task of any liberal state is to enable and maintain wealth of its nation, which of course rests upon wealthy individuals inhabiting the particular state. That imperative brought about another dilemma: if wealthy individual, the state will rob you, but in absence of it, the pauperized masses will mob you.

The invisible hand of Smith’s followers have found the satisfactory answer – sovereign debt. That ‘invention’ meant: relatively strong central government of the state. Instead of popular control through the democratic checks-&-balance mechanism, such a state should be rather heavily indebted. Debt – firstly to local merchants, than to foreigners – is a far more powerful deterrent, as it resides outside the popular check domain.

With such a mixed blessing, no empire can easily demonetize its legitimacy, and abandon its hierarchical but invisible and unconstitutional controls. This is how a debtor empire was born. A blessing or totalitarian curse? Let us briefly examine it.

The Soviet Union – much as (the pre-Deng’s) China itself – was far more of a classic continental military empire (overtly brutal; rigid, authoritative, anti-individual, apparent, secretive), while the US was more a financial-trading empire (covertly coercive; hierarchical, yet asocial, exploitive, pervasive, polarizing). On opposite sides of the globe and cognition, to each other they remained enigmatic, mysterious and incalculable: Bear of permafrost vs. Fish of the warm seas. Sparta vs. Athens. Rome vs. Phoenicia… However, common for the both was a super-appetite for omnipresence. Along with the price to pay for it.

Consequently, the Soviets went bankrupt by mid 1980s – they cracked under its own weight, imperially overstretched. So did the Americans – the ‘white man burden’ fractured them already by the Vietnam war, with the Nixon shock only officializing it. However, the US imperium managed to survive and to outlive the Soviets. How?

The United States, with its financial capital (or an outfoxing illusion of it), evolved into a debtor empire through the Wall Street guaranties. Titanium-made Sputnik vs. gold mine of printed-paper… Nothing epitomizes this better than the words of the longest serving US Federal Reserve’s boss, Alan Greenspan, who famously quoted J.B. Connally to then French President Jacques Chirac: “True, the dollar is our currency, but your problem”. Hegemony vs. hegemoney.

House of Cards

Conventional economic theory teaches us that money is a universal equivalent to all goods. Historically, currencies were a space and time-related, to say locality-dependent. However, like no currency ever before, the US dollar became – past the WWII – the universal equivalent to all other moneys of the world. According to history of currencies, the core component of the non-precious metals’ money is a so-called promissory note – intangible belief that,by any given point in future, a particular shiny paper (self-styled as money) will be smoothly exchanged for real goods.

Thus, roughly speaking, money is nothing else but a civilizational construct about imagined/projected tomorrow – that the next day (which nobody has ever seen in the history of humankind, but everybody operates with) definitely comes (i), and that this tomorrow will certainly be a better day then our yesterday or even our today (ii).

This and similar types of collective constructs (horizontal and vertical) over our social contracts hold society together as much as its economy keeps it alive and evolving. Hence, it is money that powers economy, but our blind faith in constructed (imagined) tomorrows and its alleged certainty is what empowers money.

Clearly, the universal equivalent of all equivalents – the US dollar – follows the same pattern: Bold and widely accepted promise. What does the US dollar promise when there is no gold cover attached to it ever since the time of Nixon shock of 1971?

Pentagon promises that the oceanic sea-lanes will remain opened (read: controlled by the US Navy), pathways unhindered, and that the most traded world’s commodity – oil, will be delivered. So, it is not a crude or its delivery what is a cover to the US dollar – it is a promise that oil of tomorrow will be deliverable. That is a real might of the US dollar, which in return finances Pentagon’s massive expenditures and shoulders its supremacy.

Admired and feared, Pentagon further fans our planetary belief in tomorrow’s deliverability – if we only keep our faith in dollar (and hydrocarbons’ energized economy), and so on and on in perpetuated circle of mutual reinforcements.

These two pillars of the US might from the East coast (the US Treasury/Wall Street and Pentagon) together with the two pillars of the West coast – both financed and amplified by the US dollar, and spread through the open sea-routs (Silicone Valley and Hollywood), are an essence of the US posture.

This very nature of power explains why the Americans have missed to take the mankind into completely other direction; towards the non-confrontational, decarbonized, de-monetized/de-financialized and de-psychologized, the self-realizing and green humankind. In short, to turn history into a moral success story. They had such a chance when, past the Gorbachev’s unconditional surrender of the Soviet bloc, and the Deng’s Copernicus-shift of China, the US – unconstrained as a lonely superpower – solely dictated terms of reference; our common destiny and direction/s to our future/s.

Winner is rarely a game-changer

Sadly enough, that was not the first missed opportunity for the US to soften and delay its forthcoming, imminent multidimensional imperial retreat. The very epilogue of the WWII meant a full security guaranty for the US: Geo-economically – 54% of anything manufactured in the world was carrying the Made in USA label, and geostrategically – the US had uninterruptedly enjoyed nearly a decade of the ‘nuclear monopoly’. Up to this very day, the US scores the biggest number of N-tests conducted, the largest stockpile of nuclear weaponry, and it represents the only power ever deploying this ‘ultimate weapon’ on other nation. To complete the irony, Americans enjoy geographic advantage like no other empire before. Save the US, as Ikenberry notes: “…every major power in the world lives in a crowded geopolitical neighborhood where shifts in power routinely provoke counterbalancing”. Look the map, at Russia or China and their packed surroundings. The US is blessed with its insular position, by neighboring oceans. All that should harbor tranquility, peace and prosperity, foresightedness.

Why the lonely might, an empire by invitation did not evolve into empire of relaxation, a generator of harmony? Why does it hold (extra-judicially) captive more political prisoners on Cuban soil than the badmouthed Cuban regime has ever had? Why does it remain obsessed with armament for at home and abroad? Why existential anxieties for at home and security challenges for abroad ? (Eg. 78% of all weaponry at disposal in the wider MENA theater is manufactured in the US, while domestically Americans – only for their civilian purpose – have 1,2 small arms pieces per capita.)

Why the fall of Berlin Wall 30 years ago marked a beginning of decades of stagnant or failing incomes in the US (and elsewhere in the OECD world) coupled with alarming inequalities. What are we talking about here; the inadequate intensity of our tireless confrontational push or about the false course of our civilizational direction? 

Indeed, no successful and enduring empire does merely rely on coercion, be it abroad or at home. The grand design of every empire in past rested on a skillful calibration between obedience and initiative – at home, and between bandwagoning and engagement – abroad. In XXI century, one wins when one convinces not when one coerces. Hence, if unable to escape its inner logics and deeply-rooted appeal of confrontational nostalgia, the prevailing archrival is only a winner, rarely a game-changer.

To sum up; After the collapse of the Soviet Union, Americans accelerated expansion while waiting for (real or imagined) adversaries to further decline, ‘liberalize’ and bandwagon behind the US. Expansion is the path to security dictatum only exacerbated the problems afflicting the Pax Americana. That is how the capability of the US to maintain its order started to erode faster than the capacity of its opponents to challenge it. A classical imperial self-entrapment!!

The repeated failure to notice and recalibrate its imperial retreat brought the painful hangovers to Washington by the last presidential elections. Inability to manage the rising costs of sustaining the imperial order only increased the domestic popular revolt and political pressure to abandon its ‘mission’ altogether. Perfectly hitting the target to miss everything else …

Hence, Americans are not fixing the world any more. They are only managing its decline. Look at their (winner) footprint in former Yugoslavia, Afghanistan, Iraq, Libya and Syria – to mention but a few.

When the Soviets lost their own indigenous ideological matrix and maverick confrontational stance, and when the US dominated West missed to triumph although winning the Cold War, how to expect from the imitator to score the lasting moral or even amomentary economic victory?

Neither more confrontation and more carbons nor more weaponized trade and traded weapons will save our day. It failed in past, it will fail again any given day.

Interestingly, China opposed the I World, left the II in rift, and ever since Bandung of 1955 it neither won over nor (truly) joined the III Way. Today, many see it as a main contestant. But, where is a lasting success?

(The Belt and Road Initiative (BRI) is what the most attribute as an instrument of the Chinese planetary posture. Chinese leaders promised massive infrastructure projects all around by burning trillions of dollars. Still, numbers are more moderate. As the recent The II BRI Summit has shown, so far, Chinese companies had invested $90 worldwide. Seems, neither People’s Republic is as rich as many (wish to) think nor it will be able to finance its promised projects without seeking for a global private capital. Such a capital –if ever – will not flow without conditionalities. The Asian Infrastructure Investment Bank (AIIB) and the BRICS or ‘New Development’ – Bank have some $150 billion at hand, and the Silk Road Infrastructure Fund (SRIF) has up to $40 billion. Chinese state and semi-private companies can access – according to the OECD estimates – just another $600 billion (much of it tight) from the home, state-controlled financial sector. That means that China runs short on the BRI deliveries worldwide. Ergo, either bad news to the (BRI) world or the conditionalities’ constrained China.)

Greening international relations along with a greening of economy – geopolitical and environmental understanding, de-acidification and relaxation is the only way out.

That necessitates both at once: less confrontation over the art-of-day technology and their monopolies’ redistribution (as preached by the Sino-American high priests of globalization) as well as the resolute work on the so-called Tesla-ian implosive/fusion-holistic systems(including free-energy technologies; carbon-sequestration; antigravity and self-navigational solutions; bioinformatics and nanorobotics). More of initiative than of obedience (including more public control over data hoovering). More effort to excellence (creation) than struggle for preeminence (partition).

Finally, no global leader has ever in history emerged from a shaky and distrustful neighborhood, or by offering a little bit more of the same in lieu of an innovative technological advancement. (Eg. many see the Chinese 5G as an illiberal innovation, which may end up servicing authoritarianism, anywhere. And indeed, the AI deep learning inspired by biological neurons (neural science) including its three methods: supervised, unsupervised and reinforced learning can end up used for the digital authoritarianism, predictive policing and manufactured social governance based on the bonus-malus behavioral social credits.)

Ergo, it all starts from within, from at home. Without support from a home base (including that of Hong Kong, Xinjiang and Tibet), there is no game changer. China’s home is Asia. Its size and its centrality along with its impressive output is constraining it enough.

Hence, it is not only a new, non-imitative, turn of technology what is needed. Without truly and sincerely embracing mechanisms such as the NaM, ASEAN and SAARC (eventually even the OSCE) and the main champions of multilateralism in Asia, those being India Indonesia and Japan first of all, China has no future of what is planetary awaited – the third force, a game-changer, lasting visionary and trusted global leader.

Post Scriptum:

To varying degrees, but all throughout a premodern and modern history, nearly every world’s major foreign policy originator was dependent (and still depends) on what happens in, and to, Russia. It is not only a size, but also centrality of Russia that matters. It is as much (if not even more), as it is an omnipresence of the US and as it is a hyper production of the PR China.

Ergo, it is an uninterrupted flow of manufactured goods to the whole world, it is balancing of the oversized and centrally positioned one, and it is the ability to controllably destruct the way in and insert itself of the peripheral one. The oscillatory interplay of these three is what characterizes our days.

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Uyghur asylum seeker puts international community on the spot

Dr. James M. Dorsey

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Ablikim Yusuf, a 53-year old Uyghur Muslim seeking a safe haven from potential Chinese persecution, landed this week in the United States, his new home.

But Mr. Yusuf’s perilous search that took him from Pakistan to Qatar to Bosnia Herzegovina where was refused entry and back to Qatar highlighted China’s inability to enforce its depiction of the brutal clampdown on Turkic Muslims in its troubled, north-western province of Xinjiang as a purely domestic matter.

Mr. Yusuf’s case also spotlighted the risk of increased mass migration in a world in which ethnic and religious minorities increasingly feel existentially threatened by civilizationalist policies pursued by illiberal and authoritarian leaders as well as supremacists, racists and far-right nationalist groups.

By choosing Qatar Airways and making Doha his first point of landing after leaving his residence in Pakistan, Mr. Yusuf further underscored the fragility of Muslim acquiescence in the Chinese clampdown and called into question application of Qatar’s asylum law. With the adoption of the law, Qatar last year became the first Arab state to legalize asylum.

While Mr. Yusuf is fortunate to have ended his ordeal with his arrival in the United States, his case accentuated the hypocrisy of the Trump administration that has demonized migrants and refugees and “weaponized” US human rights policy.

Mr. Yusuf’s plight serves the United States as it fights an escalating trade war with China and has made the clampdown in Xinjiang one of the opportunistically selected cases of human rights violations it is willing to emphasize.

Mr Yusuf put Qatar and the international community on the spot when he last weekend posted online a mobile phone video pleading for help hours before he was slated to be deported from Doha’s Hamad International Airport to Beijing.

The plea generated thousands of retweets by Uyghur activists and won him assistance from an American human rights lawyer and ultimately asylum in the US.

If deported to China, Mr. Yusuf would have risked being incarcerated in a re-education camp which has been an involuntary home for an estimated one million Uyghurs in China as part of what amounts to the worst assault on a faith in recent history.

China said last month that the majority of the detainees in what it describes as vocational training facilities had been released and “returned to society” but independent observers say there is no evidence that the camps are being emptied.

Mr. Yusuf decided to leave his home in Pakistan for safer pastures after Pakistan became one of up to 50 countries that signed a letter in support of the clampdown.

Concerned that Pakistan, the largest beneficiary of Chinese Belt and Road-related investment, could deport its Uyghur residents, Mr. Yusuf travelled on a Chinese travel document rather than a passport that was valid only for travel to China. China’s issuance of such documents is designed to force Uyghurs to return.

The travel document provided cover for Qatar’s initial decision to return him to China rather than potentially spark Chinese ire by granting him asylum. International pressure persuaded Qatar to give Mr. Yusuf the opportunity to find a country that would accept him.

China’s clampdown in Xinjiang is but the sharp edge of a global trend fuelled by the rise of leaders across the globe in countries ranging from the United States to China, Russia, India, Hungary, Turkey and Myanmar who think in civilizational terms, undermine minority rights, wittingly or unwittingly legitimize violence, and risk persuading large population groups to migrate in search of safer pastures.

Hate crimes have gripped the United States with critics of President Donald J. Trump charging, despite his explicit condemnation this week of white supremacism, that his hardline attitude and language when it comes to migrants and refugees has created an enabling environment.

Violence against Muslims in India, home to the world’s second largest Muslim community, has increased dramatically with 90 percent of religious hate crimes in the last decade having occurred since Narendra Modi became prime minister.

Some 750,000 Rohingya linger in Bangladeshi refugee camps after fleeing persecution in Myanmar while Islamophobia has become part of US, European and Chinese discourse and Jews in Europe fear a new wave of anti-Semitism.

Italy took efforts to counter migration that are likely to aggravate rather than alleviate a crisis a step further by adopting a law that would slap fines of up to US$1.12 million on those seeking to rescue migrants adrift at sea.

The Chinese clampdown that bars most Uyghurs from travel and seeks to force those abroad to return has so far spared the world yet another stream of people desperate to find a secure and safe home. The risk of an eventual Uyghur exodus remains with the fallout of the Chinese re-education effort yet to be seen.

Mr. Yusuf could well prove to be not only the tip of the Uyghur iceberg but of a future global crisis as a result of an international community that not only increasingly has turned its back on those in need but also pursues exclusionary rather than inclusionary policies.

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China’s risky bets

Dr. James M. Dorsey

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China’s infrastructure and energy driven US$1 trillion Belt and Road initiative involves risky bets across a swath of land populated by often illiberal or autocratic governments exercising power without independent checks and balances.

Seeking to reduce risk, China is bumping up against the limits of its own long-standing foreign and defence policy principles, foremost among which its insistence on non-interference in the domestic affairs of others, the equivalent of the United States’ preference for stability rather than political change.

If popular revolts in Algeria and Sudan as well as smaller, issues-oriented protests elsewhere in the Middle East and North Africa are anything to go by, China appears to be betting against the odds.

Anti-corruption sentiment fuelled the 2011 popular Arab revolts that toppled the leaders of Tunisia, Egypt, Libya and Yemen and are at the root of current anti-government protests across the globe in countries as far flung as Brazil, Haiti, Jamaica, Puerto Rico, Russia, Zambia, the Czech Republic, Albania and Romania

China’s risks were evident in the wake of the fall in 2011 of Col. Moammar Gaddafi when the post-revolt Libyan authorities advised China that it would be low on the totem pole as a result of its support of the ancien regime.

The risks are also evident with Baloch militants targeting Chinese assets and personnel in Pakistan.

To minimize the risk and expand its aggressive domestic anti-graft campaign, China’s top anti-corruption body, the Communist party’s Central Commission for Discipline Inspection (CCDI), is embedding inspectors in Belt and Road projects, who will be based in recipient countries.

The move helps China counter allegations that it exploits corruption in recipient Belt and Road countries to further its objectives.

Anti-corruption is a signature policy of president Xi Jinping and has allowed him to purge senior Chinese leaders as well as tens of thousands of low-level bureaucrats.

The CCDI is building on the success of a pilot project in Laos where it embedded in late 2017 inspectors in a US$6 billion railway project being built by state-owned China Railway Group. The anti-graft officials, working with the Chinese company, established a joint inspection team with their Laotian counterpart.

The question is whether the anti-corruption effort in countries like Laos or Central Asian nations that consistently rank in the bottom half of Transparency International’s corruption index will bump up against China’s non-interference principle.

Or in other words, can China successfully guard against corruption in Belt and Road projects without pressuring recipient countries to adopt broader transparency and anti-corruption measures?

How can you strike hard on corruption here at home and give a free hand to Chinese people and business groups [that are] reckless abroad?” CCDI’s director-general for international co-operation La Yifan asked in a Financial Times interview.

Mr. La said China had organized seminars with more than 30 countries to link up anti-corruption regulators. “That is my dream, that we create a network of law enforcement of all these Belt and Road countries,” he said.

Imposing transparency and anti-corruption in Belt and Road partners would be the equivalent of all kinds of environmental, safety and human rights criteria that the United States haphazardly and opportunistically maintains in dealings with foreign countries that have been severely criticized by China.

China has long prided itself on what it terms win-win economic situations in which it imposes commercial terms that often primarily benefit the People’s Republic.

The terms, coupled with the clampdown on Turkic Muslims in China’s province of Xinjiang, has fuelled anti-Chinese sentiment in Turkey and Central Asia with their close ethnic and cultural ties to the troubled Chinese region.

Turkish officials highlighted these sensitivities by denying Chinese media reports that president Recep Tayyip Erdogan had praised the success of Beijing’s brutal approach in Xinjiang during a recent visit to China.

Muslim nations have largely remained silent about the clampdown that amounts to the most frontal assault on a faith in recent history or in some instances even tacitly endorsed it.

In the absence of democracy, “governments can manage their pro-Beijing stance without informing their public, but a pro-Beijing policy over the Uyghur issue can barely be sustained in Turkey. Turkey is still a functioning democracy and total control of the public is not possible. Besides, there is a very strong Uyghur lobby and public sentiment towards the Uyghurs in Turkey,” said Turkish Centre for Asia-Pacific Studies director Selcuk Colakoglu.

Taking its anti-corruption campaign global, raises the broader question of whether it would threaten a pillar of autocracy that China’s non-interference principle has de facto sought to perpetuate.

Political scientists Alexander Cooley and John Heathershaw argue that what they call the instruments of global authoritarianism — an army of largely Western bankers, lawyers, brokers and intermediaries that park illicitly gained monies in off-shore accounts and manage the investment of those funds – help keep autocrats in power.

The success of the globalization of China’s anti-corruption effort as well as its campaign to significantly reduce graft at home, would establish autocrats’ ability to satisfactorily deliver public goods and services alongside brute power as the cornerstone of their sustainability.

In doing so, it would give greater meaning to China’s assertion that it does not want to fundamentally alter the established multi-lateral world order but rather make it more equitable and more a reflection of a world that is multi- not unipolar.

It would also cement China’s model of economic reform and state capitalism without political liberalization as the example autocratic and authoritarian regimes want to emulate even if the jury is out on whether autocrats can remain relatively clean without a system of independent checks and balances.

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