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Tension between North Korea and the United States

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[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] T [/yt_dropcap]he tension between the United States and North Korea is still mounting. In fact, in mid-May, some North Korean executives accused the US intelligence services of having made an attempt on Kim Jong-un’s life. Allegedly the operation started with CIA selecting a North Korean citizen, who had already had contacts with the South Korean intelligence services, and who had to use highly poisonous chemical substances against the North Korean leader.

In addition, the attacker was supposed to have had links with a Chinese company, namely Qingdao Nazca Trade Co.

It is also likely that the attempted assassination of the North Korean leader may be the result of an internal struggle for power in the country, but obviously – at a time of very high international tension – the North Korean propaganda lays emphasis only on the United States.

However, the new South Korean President Moon Jae-In – a human rights lawyer – has repeatedly stressed that he plans to work with President Donald Trump. Nevertheless he has also stressed that he is anyway open to negotiations with North Korea without any conditions, which is certainly not what the United States wants from him.

Nor does it seem to us that the United States is building an effective strategy for dealing with North Korea and solving the tension regarding the North Korean nuclear missile system.

The issue can be solved neither with the rhetoric of “human rights” and the improbable and universalistic spreading of bipartisan democracy, as is usually the case with the US Democrats’ Presidencies, nor with a substantial block of relations with the countries of the “axis of evil”, possibly pending a very dangerous military operation which, however, will never come.

This is the latest typical attitude of the Republican Presidencies.

As is well known, the operations for assassinating the political leaders disliked by the United States were blocked by Congress in the 1970s, but nothing prevents direct actions against enemy Heads of State from being still carried out, with the collaboration of the intelligence services.

This is the sign of a severe conceptual and political mistake: a political system never depends solely on its leader, but it is a complex structure that is rapidly recreated if the supreme leader falls.

Saddam’s Iraq was not “bad” because Saddam Hussein was an evil man. Iran is not a member of the “axis of evil” because it is led by some extremely cruel Shiite Imams – not to mention the fact that Iran is not the world sponsor of Islamic terrorism, which is indeed strongly supported by the traditional US Sunni friends.

Psychologism and personalism are two very serious mistakes for those who want to deal seriously with global strategy and foreign policy.

Moreover, Fidel Castro’s assassination designed by CIA would have not destroyed the Cuban Communist regime, but would have made it even more radical vis-à-vis the United States.

Currently, however, which are the real strategic direction, consistency and aim of the North Korean nuclear system?

This is the only question we really need to ask, both to start realistic negotiations and to understand the geopolitical goals of the North Korean military system.

As to biological weapons, the relevant North Korean structures are the three Biological Research Institutes, included in the network of the National Academy of Sciences, as well as an Institute for Medical Research within the National Defence Academy.

Besides these three Institutes, there are as many as sixteen specialized bodies dealing with the various fields of research on and for bacteriological weapons.

With specific reference to chemical weapons, they are currently estimated at 5,000 tonnes of material.

The bodies involved in this defence sector are supposed to be 25-50, employing at least 5,000 people.

Finally, as to nuclear weapons – the best known part of the North Korean military apparatus – the institutions and political organizations controlling them are, manifold, complex and interdependent, as is often the case with North Korea.

According to a source of the South Korean intelligence services, North Korea’s nuclear sites are approximately one hundred, while other sources talk about 150 entities and sites linked to North Korea’s nuclear-military research with a total of 9,000-15,000 employees.

The Research Institutes involved in North Korea’s nuclear project are 13, while the uranium currently available is estimated at 26 tonnes extracted from at least 10 mines.

Other sources talk about 33 kilos of Pu-239 and 175 kilos of enriched uranium, which should be the equivalent of 6-9 Pu-239 weapons and 13-18 enriched-uranium warheads.

Too few to be a global threat, as some US analysts believe, but enough to keep South Korea in check and, above all, Japan and the US bases in the South Pacific region.

Currently North Korea has thirteen different types of missiles, with the latest ones (Pukguksong 1 and 2, Hwasong-12, 13 and 14) that can reach targets up to 12,000 kilometres from the launch site.

Hence another future goal of the North Korean missile system is to put the North American Western territory – hence the US Pacific coast – under strategic threat.

Although there exist US and South Korean military forces specialized in   disrupting the sites for weapons of mass destruction, technically the distribution of nuclear, bacteriological and chemical resources in North Korea is such as not to facilitate the success of the debunking operations in the North Korean sites.

Operations that would be very difficult also in the event of the North Korean regime collapsing.

Just think what could happen with infiltrations from South Korea to destabilize the North Korean sites.

Hence, should North Korea collapse, the only solution for stabilizing the peninsula lies in China’s Armed Forces and policy.

In case of North Korea’s implosion, China wants only three things: regional stability, as well as the creation of a buffer State between its own territory and South Korea (which would probably also implode) and, ultimately, the denuclearization of the entire Korean peninsula, with the subsequent expulsion of US forces from South Korea.

This would result in the rapid acquisition of most North Korean nuclear and bacteriological-chemical structures by the Chinese military forces.

The Sino-Korean border is long and China could set up refugee camps and, above all, military bases to go deep into North Korea.

Certainly, the tension between North Korea and China is now palpable – hence, in the future, China may not be the ideal broker between North Korea and the West.

However, while the bilateral situation between China and North Korea is worsening, the one between Kim Jong-un’s regime and Russia still seems to be good, if not excellent.

The United States is wrong in not considering important the role played by Russia in the North Korean system, while it has long been asking for the Chinese support to settle the Korean issue with a good agreement.

All three powers, namely China, the United States and the Russian Federation, have a clear interest in denuclearizing the entire Korean peninsula.

Furthermore these three countries regard the North Korean nuclear proliferation as dangerous because it creates instability and triggers off further proliferation in other South Asian regions.

However, it would be enough to start negotiations with North Korea based on the acceptance of the status quo, enabling IAEA inspectors to return to North Korea for their nuclear monitoring activity and finally organizing economic and humanitarian support for the North Korean population – not to mention the definition of a series of industrial and financial projects to redress the North Korean economy and put it back on track so that the country could be stabilized permanently.

North Korea should accept the block of any further nuclear or biological-chemical weapons; a nuclear, biological and chemical cooperation treaty with China and Russia; a peace treaty with South Korea and the official recognition of the current borders between North and South Korea.

Moreover, according to Russia, the North Korean issue must be solved immediately to avoid nuclear proliferation, as well as the US military presence in South Korea and in the other Pacific Asian regions, and finally making economic cooperation between Russia and South Korea more effective.

As we already know, both Russia and China want the denuclearization of the entire peninsula, but only in a peaceful manner and through political negotiations.

Obviously, China intends to avoid any regional military clash on its borders, which would have catastrophic consequences for its economic and geopolitical projects – just think of the new Silk Road designed by Xi Jinping.

For Russia, military tension between the two Koreas or between North Korea and Japan would certainly be a severe danger, but not such as to directly threaten its territory.

In fact, if the shield represented by North Korea were to disappear, China would have the US Army on its borders, with all the obvious consequences this entails.

Furthermore, if North Korea imploded, China would have to be directly involved in the creation of a buffer State to avoid both South Korea’s contagion and the direct confrontation with the US forces.

For Russia, military tension between the two Koreas would mean a further worsening of the confrontation with the United States in other Pacific regions. Russia mainly wants to resume the six party talks, while Putin is likely to send a special envoy to North Korea in the near future.

Hence, while President Trump does not explicitly rule out the military solution to the North Korean issue, neither Russia nor China will be of any use.

Indeed, Russia will see in the new South Korea only the expansion of the North American strategic network, which it considers the main danger to its strategic autonomy.

However, not even North Korea wants to prompt a US intervention and, in fact, in its leaders’ texts and speeches, it emphasizes the use of missiles to block the Japanese actions and, above all, those starting from the Guam US base.

Hence, reopening the six party talks, with a new format attaching priority to Russia’s and China’s participation; reaffirming the legal acceptance of North Korea and opening up the North Korean regime to the Chinese, European and Russian economies.

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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Chinese Communist Party and the path of “high-quality development” at Guangdong Province

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A night view of Shenzhen, Guangdong province, on March 10, 2018. (PHOTO / VCG)

During the meeting of “Huang Kunming”, Secretary of Guangdong Provincial Party Committee mentioned that it is significant for Guangdong embark on a path of high-quality development fit for its own situation. According to my highly understand of China’s high-quality development and analysis to the nature of the Chinese society and the polices of the Communist Party of China regarding the development is meaning (all-round building a strong modern socialist country) and all-round rejuvenation of the Chinese nation still need to rely on development.

 With the continuous development of the Chinese economy and the deepening of reforms, China put forward a new expression of “high-quality development” for the first time at the 19th National Congress of the Communist Party of China in 2017, which indicates that China’s economy has moved from a stage of rapid growth to a stage of high-quality development.

 Changing China’s economic development strategy is an inevitable choice in line with the law of development and the demands of its development. Now, China is seeking to change its previous development pattern of relying on a large number of factors of production to focus more on quality and efficiency.  It has begun to adhere to the implementation of the new development philosophy that emphasizes innovative, coordinated, green and open development for all, and to build a new development pattern that relies on domestic trade and promotes integration between domestic and foreign trade to enable the Chinese society to complete the building of a strong modern socialist country in an all-round way, Chinese side should stick to advancing high-quality development as the top priority, as President Comrade “Xi Jinping” stressed in the report.

 High-quality development mainly depends on the economy’s vitality, innovation and competitiveness.  In order to improve these capabilities, China is accelerating the implementation of the innovation-driven development strategy, intensifying its efforts to achieve a high level of self-reliance in scientific and technological research, mobilizing forces and focusing on solving intractable problems in original and pioneering science and technology research to achieve breakthroughs in some crucial and pivotal technologies, which are guided by these strategies, China has achieved good results in manned space industry, lunar and Mars sounding, deep-sea and land exploration, supercomputers, satellite navigation, quantum information, electro-nuclear technologies, large-scale passenger aircraft, medicine, biopharmaceuticals and other fields over the past years, and joined the ranks of innovative countries in the world.

 Green development is an important symbol of the transition of China’s economy from the stage of rapid growth to the stage of high-quality development. In recent years, China has pushed the green transition to a development mode, implemented the comprehensive rationalization strategy, developed green and low-carbon industries, and advocated green consumption.

  The bright future of China’s economy stems from more flexible and high-quality development. In 2021, China calmly responded to changes in the world as well as the COVID-19 epidemic, took new steps to build a new development pattern, achieve new results in high-quality development, and achieve a good start for the 14th Five-Year Plan. China has maintained a leading position in the world in economic development and in epidemic prevention and control, accelerated the growth of national strategic scientific and technological forces, improved the flexibility of the industrial chain, continued to deepen supply-side structural reforms, and made solid progress in the green transformation of the low-carbon economy and prosperity subscriber.

  Here, with the strong leadership of the Communist Party of China, the significant advantages of the socialist system with Chinese characteristics, the technological foundation accumulated since reform and opening up, the extremely large market advantage and domestic demand potential, and with huge human capital and human resources, the Chinese economy will continue to grow steadily on the path of high-quality development, enabling China to contribute in achieving a steady and stable progress in the recovery of the global economy.

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China’s Deflating Population: The Economic Marvel in Eclipse?

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So China’s population shrank last year. I admit my first instinct was … well, isn’t this a good thing? I mean, during the entire 1960s and 1970s, global discourse misted around how the world population kept growing beyond the finite resources of this world. And how food scarcity and poverty would create a social depression. China, with a population of roughly 1.4 billion people, was specifically a focal point of population reduction strategies. After the widespread catastrophe of the Great Leap Forward, a debilitating social program orchestrated by Mao Zedong in the late 50s, China’s population was on the up and up in the following decade, to the point that the infamous ‘One-Child Policy’ was introduced in the late 70s to inhibit the burden of a growing population – and concomitant poverty. Since then, however, China has dynamically transformed into an economic powerhouse – a factory floor for global manufacturing. And here lies the answer to this population conundrum: Shrinking population in China is a problem now!

According to the data released by the Chinese government last week, China’s population contracted by circa 850,000 people in 2022; with 9.56 million births against 10.41 million deaths, it was the first time in more than half a century that deaths outnumbered births in China. The initial thought would be to blame it on the pandemic. But that would be a blinkered assumption without gauging the stunted birth rate. It was the sixth consecutive year that the number of births fell, down from 10.6 million in 2021, according to the National Bureau of Statistics. Many demographers and statisticians warned for years about a population decline on the cards, albeit much later in this decade. This presage was why the government reposed its one-child policy in 2016 and extended the limit to three children in 2021. Local governments offered tax rebates and outright cash handouts to couples having children. The source of anxiety was partly social and partly economic – or maybe socioeconomic is the correct juxtaposition.

China is a rising economic power, the world’s second-largest economy, and the strongest contender to dethrone American supremacy. But in listing all the superlatives, we sometimes forget that China is still a developing economy. Despite its phenomenal evolution from endemic poverty, its average population still earns less than the average earnings in advanced economies. And the shrinking population is a two-pronged issue that could constrict China, like other leading developing economies, into a middle-income trap.

Just by simple inference, we can judge that a declining population is also an aging population. Impressive modernity in China’s healthcare system has led to an increase in life expectancy. Meanwhile, a decades-long hiatus in birth-conducive policies and changed mores of young Chinese couples, often antipathetic to having children altogether, have led to a sharp decline in births. A combination of these factors has invited a conspicuous outcome: Shrinkage in China’s working-age population. In fact, China’s working-age population has been in decline since 2015; according to a government spokesman, it could fall to roughly 700 million (approximately 23%) by 2050. This factor would be particularly problematic for China, which has long been a competitive labor market for manufacturing heavyweights like Apple and Microsoft. But moreover, a bulging elderly population amidst falling tax receipts would pose a challenge to government finances, especially given the comparably underdeveloped social safety net programs in China. Therefore, either taxes ought to be raised sharply or state pensions to old-age dependents would hit the skids – a spartan policy dilemma either way.

We can draw apt comparisons from Japan – the world’s third largest economy – which has notoriously suffered from a lopsided aging population and accompanying anemic economic growth since the asset bubble burst of the 1990s. I mean, China’s real estate market does look like a financial crisis just waiting to happen. But post-boom Japan has tried virtually every bizarre economic strategy – from negative interest rates to yield curve control – yet has failed to spark demand-led inflation. Strangely, however, China has sustained its bustling economy on prohibitive rates of investment rather than consumer demand, which has remained relatively lukewarm due to policymakers’ reluctance to pass the complete scope of economic growth to households. Nonetheless, a contracting labor force would perhaps accelerate the exodus of manufacturing from China unless the government finds alternatives to sustain China’s unrivaled productivity levels.

We could blame China’s ‘zero Covid’ policy for strangling economic growth. It is no surprise that China’s economy grew by a modest 3% in 2022, its slowest rate in nearly four decades, barring 2020. Intermittent lockdowns and pedantic mass testing regimes cast a pall over economic activities. And higher interest rates imposed by the Federal Reserve and other central banks have dampened global demand and diluted appetite for Chinese imports. According to government officials, year-on-year Chinese exports fell by 9.9% in December. While an economic turnaround is widely expected later this year, a falling working-age population; a skyward old-age dependency ratio; and the ongoing trade tussle with the United States could cost China many more decades to supersede the American edge. However, China has been an iridescent success story, an economic miracle of sorts. And therefore, if the Chinese Communist Party (CCP) could somehow prioritize economy over national security; social reforms over governmental control; and collaboration over confrontation, I reckon China can again defy the odds and achieve its dream.

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Nepal-China Relations and Belt and Road Initiative

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Image source: xinhua

China appears to be more “functional” in Nepal recently. A new administration led by leader Pushpa Kamal Dahal has acted on the same pitch initially also. The Rasuwagadhi border crossing, which had been blocked for three years, has been reopened for two-way trade, and the much-anticipated Gyorong-Kathmandu train project’s final survey has also begun as of January 1, 2023. The second phase of the 10-lane ring road project from Kalanki to Chabhil is anticipated to start soon as well. All these accumulatively demonstrate the current nature of friendship between them and the profound Belt and Road Initiative is the key rostrum for the current complexion of the relationship between them. Hence, the trends are indicating a greater form of cooperation even in the regional domain as well.

Meanwhile, China and Nepal have inked a six-point agreement to strengthen bilateral collaboration and exchanges on governance, legislation, and supervisory practices, in line with Beijing’s Belt and Road Initiative (BRI). On September 12, 2022, in Kathmandu’s federal parliament building, Agni Prasad Sapkota, Speaker of the Parliament, and Li Zhanshu, Chairman of the Standing Committee of the Chinese National People’s Congress, signed the agreement. According to the agreement, the nations would exchange information about each other’s legislative, oversight, and governance activities. Five years after BRI’s founding, on May 12, 2017, Nepal formally joined the process. Nine projects – the upgrading of the Rasuwagadhi-Kathmandu road, the construction of the Kimathanka-Hile road, the construction of the road from Dipayal to the Chinese border, the Tokha-Bidur Road, the Galchhi-Rasuwagadhi-Kerung400kv transmission line, the Kerung-Kathmandu rail, the 762MW Tamor Hydroelectricity Project, the 426MW Phuket Karnali were on the to do list. However, more than any other nation, China invested US$188 million in Nepal during the 2020–21 fiscal year. During KP Sharma Oli’s visit to Beijing in 2016, Nepal and China also ratified a transit transport agreement for commerce with other parties.

However, amidst the current global tension and the changing rapport of international politics, China remains as a key investor in Nepal. Besides, the recent activities from the Nepal administration showed a shift in policy domain from the previous regime which in some cases was rigid to Chinese projects. Meanwhile, the BRI becomes more eminent in the strategic, political and economic domain of the status quo. Against such backdrop, the next sections will discuss current trends of the BRI in Nepal.

Nine Projects: Token of Continuation of the Initiative

Nepal put forward nine potential projects to be undertaken under the BRI at the beginning of 2019. These included setting up a technical institution in Nepal, building new highways, tunnels, and hydroelectricity dams, as well as conducting a feasibility assessment for a trans-Himalayan railway that would connect Jilong/Keyrung, a Chinese port of entry, with Kathmandu. This enhanced the significance of the project which will direct to more prosperous China- Nepal relations.

Nepal, the “Pillar”

Hou Yanqi, the Chinese ambassador to Nepal, stated in April 2022 that Nepal was one of the BRI’s most significant pillars and that projects were still moving forward despite the “speed of pragmatic collaboration” slowing down because of the coronavirus pandemic and Nepal’s changing political climate.

Transit Through China: Better Connectivity and Trade

Kathmandu protocol agreement with Beijing, Nepal will import and export goods from a third country through China through Tianjin, Shenzhen, Lianyungang and Zhanjiang seaports and land ports of Lanzhou, Lhasa and Shigatse. They will also get the facility of transporting goods through six dedicated transit points of the two countries. It will boost the trade for improved connectivity.

Extended Cooperation in Domains Except for BRI

In addition to the BRI projects, China is currently making significant investments in Nepal’s infrastructure, including ring road expansion, dry ports at the border crossings of Larcha and Syabrubesi, the establishment of China Study Centers, a new international airport in Pokhara, and optical fiber cable connectivity from Kathmandu to the Chinese border.

Energy Exploration: New Domain of Cooperation

China is also looking into the prospect of discovering gas and oil deposits in Nepal and is building a border river crossing at Hilsa, Humla. It will open a new domain of cooperation based on mutual interest.

Poverty Reduction and Generating Newer Income Sources

Currently, roughly six Chinese airlines offer regular flights to Nepal. Nepal has the fastest-growing Chinese tourist industry. Nepal granted China access to choose 16 Himalayan regions that border China to develop as part of a program to fight poverty.

Security: Bringing Peace

Joint military drills between China and Nepal are also a new development in security cooperation. It will bring peace in the region since the image of Nepal is very clean.

Increased Diplomatic Connectivity

The BRI appears to be one of the three priority pillars for the Chinese government’s organizing principles of foreign policy, along with the Global Development Initiatives and the Global Security Initiatives, in terms of developing successful international relations rather than just an economic endeavor. It will bring a fresh start in the diplomatic domain of both countries and the future prospects of ties in the diplomatic arena can be discussed robustly.

No More Landlockedness

Under BRI and the Trans-Himalayan Multi-dimensional Connectivity Network, which will transform Nepal from a landlocked country to a land-linked one, there are multiple road, sea, and corridor networks throughout the world. It will boost the relationship to a great extent while there will be a surge in the arena of export and import.

Regional Connectivity

The extension of the Qingzang railway from Tibet to Nepal and the border with India is among the most significant BRI projects. Three routes are being considered for this railway. The first would connect Shigatse to Kathmandu via Kerung and continue on to Pokhara and Lumbini before reaching the Indian border. The second would run from Shigatse to the Burang border and connect Humla and Darchula districts in Nepal with Pithoragdh, Uttarakhand, while the third would link Shigatse to the Yandong border of Sikkim, India.

As China and India have no trade disputes with one another, India would gain from this project as well after trading through this route. In comparison to other industrialized parts of the world, South Asia could see an increase in commerce and investment if this project is carried out on a win-win basis between China and Nepal.

Challenges

Additionally, loans are typically provided on commercial terms through the Silk Road Fund and the Asian Infrastructure Investment Bank (AIIB), both of which are led by China (SRF). Due to project site clearance delays and the nation’s political instability, along with its comparatively short repayment time, Nepal’s big projects have raised concerns that they may not get off the ground.

Besides, three primary issues with China are of particular concern to the Nepalese government. First, instead of commercial loans, the nation favors grants and lenient loans from China. Second, it wants the interest rate and repayment period to be comparable to those of multilateral funding organizations like the Asian Development Bank and the World Bank. Thirdly, it thinks that bid competitions ought to be allowed for the BRI projects. But the Chinese authorities are not responding on the same page.

The Inception of a Recommenced Cooperation

Pradeep Gawali, Foreign Minister in the KP Sharma Oli’s government, said that from the perspective of Nepal, the BRI projects were the way to be connected to the trans-Himalayan multipurpose connectivity network. Nepal had been able to select the nine projects included in the BRI with great success. However, Chinese authority said on December 26 that it looks forward to cooperating with the new government to advance projects under the ambitious Belt and Road Initiative, a day after the Maoist party chairman Pushpa Kamal Dahal alias Prachanda was named as Nepal’s new prime minister (BRI). China aims to develop initiatives under the Belt and Road collaboration, according to Mao Ning, the official spokesperson for the Chinese foreign ministry, who congratulated Prachanda on his appointment. Beijing claims that as a longtime ally and neighbor of Nepal, China cherishes Nepali relations very highly. China is prepared to collaborate with the new Nepalese administration to broaden and deepen friendly relations and cooperation on all fronts, pursue high-quality Belt and Road cooperation, strategic cooperative alliance marked by enduring friendship for growth and prosperity new impetus, and bring more benefits to peoples from both sides.

Hence, it is evident that China’s policy toward Nepal is generally stable and uncomplicated, and the two countries’ bilateral relations have been cordial and shaped by Nepal’s strategy of balancing the divergent impact of China and its southern neighbor. Through BRI projects, Nepal could gain better connectivity relations with its northern neighbors, but in order to do so, Nepal must enhance its negotiations with China.

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