Authors: Wang Wei, Edward Lai
The concept of the “BRIC” began to affect the audiences in 2001 when economist Jim O’Neill first used the term referring to the emerging countries like Brazil, China, India and Russia combined. And later it was added with South Africa. The argument go that the relative size and share of the BRICs in the world economy would rise exponentially and gradually imply for the G-7, which is regarded as the economic hegemony of the West, to make a rearrangement of the world order.
In 2003 scholars like Dominic Wilson echoed the same thesis in the report on “Dreaming with BRICs: The Path to 2050” that in all likelihood by 2025 the BRICs could account for over half of the size of the G-7 in terms of GDP. And in less than 40 years the BRICs’ economies together could be larger than the G-7. Although controversial as it was, the key underlying idea behind all discourses is that China and India will arise as the world’s principal suppliers of manufactured goods and services, while Brazil and Russia will become similarly dominant as suppliers of raw materials. In addition, what the BRICs have in common is that they all have an enormous potential consumer market, complemented by access to regional markets and to a large labor force. It argues that three key issues that BRICs have to embrace for their partnership development are as follows: inclusive growth, sustainable solution and foreign policy, and the post-Western world.
In the long run, China as the second largest economy of the world has more expectation on the role played by the emerging powerhouses. During the 2017 G-20 Summit in Germany, the leaders of the BRICS nations held informal meeting reaching key consensus on building an open world economy and improving global economic governance. As scheduled to holding the rotating presidency of the BRICS bloc during September of 2017 in China, President Xi Jinping lost no time to reiterate that the member states would establish an open world economy, maintain a multilateral trade system and advance inclusive, balanced and win-win economic globalization. Only in so doing, is it possible to make the fruits of economic growth accessible for all people. Why has the BRICS nations highlighted the tenets of inclusiveness and multiple world order in their further work towards a common vision on critical international issues?
The BRICS nations are important not just because of their recent and current rapid development, but because of the predicated changes that are going to transform the global economy and even change the balance of global economic power. The 2007-2009 financial crises, regarded by many economists as the worst financial crisis since the Great Depression in 1929, were relatively well withstood by the BRICS economies. As a result, this crisis reinforced the view that, though debatable, international economic institutions had to be reformed to reflect shifting economic power. Brazil and India had long demanded reform of international economic institutions as well as seat on the United Nations Security Council. So do China and Russia, although they have demanded from different perspectives. Little progress with UN reform were made since then, but considerable change occurred within the WTO, with Brazil and India becoming members of the inner negotiating circle, also being well-known as “new quad” along with the US and EU. For many, a major symbolic step occurred with the creation of the G-20 in 2008. As Andrew Hurrell put it, “The G-20 was a major symbolic of how the structure of global governance were shifting in response to the new geometry of power, and a sign of what the future would bring about.” Obviously, all the BRICS nations are now the members of the G-20. At the time of economic globalization, the bargaining power of the BRICS nations’ vis-à-vis U.S.-dominated global institutions is growing.
Second, there is no doubt that the BRICS member-states also have their own internal challenges and external divergences on many issues. The central point of the role of the BRICS nations in the world affairs is not where world order is now, but where it was going to in the next decades, to say by 2050. Building on the idea that “a shared voice is stronger than a single voice”, the emerging powers realize that they need to cooperate in order to push forward their own agendas. Given this, the new forms of multilateralism led by today’s emerging and regional powers—China, India, Brazil and Russia as well—have put the idea of globalism firmly back on the political and intellectual map. In his latest speech in Hamburg, President Xi highlighted the importance of the G-20 and in particular the BRICS in boosting international economic cooperation and improving global governance. At the same time, he also encouraged the BRICS nations to play a leading role in the support of developing countries, especially African ones in terms of infrastructure, mining and energy industries, since this is the practical way to help them make progresses in the highly interconnected world. Thanks to the growing clout of the BRICS nations, the leaders of the bloc agreed that they would keep the good momentum of deepening cooperation on politics, economy and people-to-people exchanges in order to push forward more substantial programs among the BRICS members, for example, the multilateral exchanges of culture and education.
It is held that the BRICS has primarily confined itself to economic issues, but political problems are also being discussed increasingly by the bloc leaders. This is because global issues like climate change, terrorism and growing inequality in the world are high on the agenda of each member-state. Particularly as China is about to become the largest economy of the world by replacing the US, Russia has stabilized economically and decreased its debt while India and Brazil have comparatively high GDP and a large middle class to uphold economic growth. Therefore, the common vision, coordination and cooperation have facilitate the BRICS to be more proactive and constructive on international political issues ranging from war on terrorism, and the Israeli—Palestinian conflict to more topical subjects like Syria, Afghanistan and the Iranian nuclear question and Africa.
The key concern remains how to validate the BRICS nations as a functional grouping rather than just a forum? Globally, it is vital for the BRICS to become a knowledge base for other developing countries in view of substantial and sustainable aid. Technically they should take up some areas like solar energy, ethanol, urban landscape, slum-alleviation, special economic zones, and biotechnology and share its best practices with southern countries. As different from the G-7, World Trade Organization and other Western institutions which are deemed to retain economic hegemony over the vast developing lands, the BRICS nations are committed to multilateralism and human development and social welfare in accordance with the outlines of the United Nations.
For sure, the BRICS still have long way to go in terms of massive education and technology innovation, not to mention the hidden concerns with China’s economy towering over the rest of the BRICS states, particularly India and Russia. However, they have already advanced with huge strides in the multilateral direction. The disagreements remain between them, but all are aware that BRICS should not break as long as they stand together.
(*) Edward Lai, Lecturer at Dalian Maritime University, China
The violently peaceful struggle for Tibet
Many years later, as he faced how the Dalai Lama became a political inconvenience for an increasing number of world leaders, the former emissary of the Dalai Lama, Gelek Rinpoche was to remember those distant afternoons when the poet Allen Ginsberg, the composer Philip Glass, the author Robert Thurman and the actor Richard Gere jointly planned fully-booked glamorous events for his Buddhist Jewel Heart organizations based in Ann Arbor, Chicago, and New York. At that time, the end of the Cold War was so recent that many notions lacked names, and in order to describe them, it was necessary to invent.
The belief of the Dalai Lama as a “man of peace” was pragmatically shared by all Western politicians, media and left-thinking intellectuals who depicted the people of Tibet as by nature honest, gentle and kind. This belief helped spread the perception of Tibetan culture as a compassionate and non-violent one, and of Tibet as a civilization where, under the Lamas, peace and happiness prevailed and that this condition of happiness could be taken up worldwide.
Just a few years before the end of the Cold War, the film Seven Years in Tibet featuring Brad Pitt posited that Tibetans revere life so much that they refuse to kill even worms and that the “Chinese are brutal; the Tibetans are gentle.” The Tibet activist and actor Richard Gere spoke of “Beijing’s savage oppression of the gentle Tibetan people.” Western media referred to the Dalai Lama as an apostle of world peace and happiness, and the idea that the Tibetan people are naturally peaceful became an obvious truth for all.
The rhetoric of the (cultural) genocide
In 2001, a few days before the International Olympic Committee met in Moscow to award the 2008 Games to Beijing, Gelek Rinpoche, acting as the Dalai Lama’s envoy for the occasion, approached the General Director of the International Olympic Committee and confident in the Tibetan struggle narrative that had gained good traction by then, demanded that the Games should be denied because “China has been executing a policy in Tibet of ethnic and cultural genocide against the Tibetan people, and intended to erase the Tibetan people from the face of the Earth.”
In 1959 after Gelek Rinpoche accompanied the Dalai Lama in his flight to India, both thought that in the near future China would totally exterminate the Tibetan race. In reports from 1959 and 1960, the CIA-funded International Commission of Jurists (ICJ) claimed that China was committing genocide in Tibet by eradicating the Tibetans through restrictions on religion that were destroying their way of life. A few years later the Dalai Lama mitigated his certitudes and admitted that China’s aim was not physical annihilation, but assimilation and subordination, stating that China “seems to attempt the extermination of religion and culture and even the absorption of the Tibetan race.”
Today it is historically irrefutable that there were substantial causalities in Tibet due to the vicious actions of Mao-era China, as there were throughout the country. However, there has never been credible evidence showing that physical genocide has been perpetrated in Tibet aiming at the extermination of Tibetans. Claims that a fifth of the Tibetan population was annihilated from 1959 to 1979 through executions, famines, imprisonment, and other means are without any evidentiary roots. Mao was at war with an ideology, not the nation of Tibetan people alone. Absent the nexus to physical genocide, a claim of cultural genocide becomes no more than a rhetorical construct, a conjecture in need of a name that would become the foundation justification for the Tibetan struggle.
The notion of cultural genocide in Tibet resonated in the West because it is a largely unexamined concept. Even where the phrase itself is not used, Western media reflexively alluded to the idea. For example, in late 2017, the US Congressional-Executive Commission on China, headed by Senator Marco Rubio, invited the actor Richard Gere as “someone who is knowledgeable about the political situation in Tibet” to testify before the committee. In his testimony, the actor stated that “under Chinese rule, the Tibetan language and culture have been suppressed”. In reality, the education system in Tibet has been tailored to the cultural specificities of Tibetans by developing primary level schooling in the Tibetan language and secondary level schooling on a bilingual basis, adding Chinese languages and supplementary English lessons to the curriculum. Gere’s assumed expertise in Tibetan matters has never been called in question because it fitted a definite agenda.
Others have posited that cultural genocide does not only mean killing, it also means limiting births among Tibetans. A lawyer who headed the US-based Tibet Justice Centre advanced such allegations, and the Dalai Lama stated that China is “forcing strict family planning rules on my people” in order “to make us a minority in our own land.” The fact is, family planning and the “one child” policy, however, even where coercive, were part of China’s policy over the entire Chinese territory for decades, and not just imposed on Tibet.
Some Tibetan leaders in exile and Western NGOs claimed that “Tibetans are not even permitted to undertake routine religious activities”. They asserted that 6,000 monasteries were destroyed before or during the Mao’s Cultural Revolution and that “the handful of surviving monasteries are being used as public toilets and barracks while monks and nuns in Tibet have been forced by the Chinese to defecate on religious objects”. Such claims are anachronisms designed to imply that a second Maoist Cultural Revolution is ongoing in Tibet. Yet mass participation in routine religious activities is evident to even sceptical observers and the occasional tourist.
Western journalists reported that in Tibet many hundreds of Tibetans prostrate themselves at temples daily, while US human rights officials visiting Lhasa saw pilgrims crowded in front of the Jokhang, one of Tibet’s most important temples, to perform ritual worship. They do not challenge China’s claims that every year more than one million people visit the Jokhang. As for the major monasteries on the Tibetan plateau, Western reporters have noted that the there are now 300 more lamaseries and temples in the Tibet than existed in the region before 1951. Again, such figures are not disputed.
Chinese state efforts to preserve Tibetan cultural accomplishments and popularize Tibetan culture by creating venues for its development are ignored in Western discourse because such efforts conflict with the idea of cultural genocide in Tibet. Rather, exile Tibet leaders and Western NGOs reject performing arts in Tibet as inauthentic and have stated that “in this calculated cultural genocide the Chinese make every effort to remove any vestige of Tibetan character in the performing arts.”
Even artists educated in contemporary Tibet who emigrate to India, such as Gongkar Gyatso, are spurned as polluted. Exiled Tibetan authorities are unhappy that the main trend in Tibetan art, in or out of Tibet, has been modernistic. They consider religious scroll painting to be the only authentic Tibetan style, and disapprove all other painting styles produced by ethnic Tibetans as being corrupted by Chinese influences. The reference to the arts and cultural genocide is a classic nationalist juxtaposition of the inauthentic in “occupied Tibet” to the “pure” preserved culture of the exiles and allied Western-based NGOs. One exponent of those NGOs is the New York-based Tibet House, founded in 1987 by Robert Thurman (father of actress Uma Thurman), actor Richard Gere and composer Philip Glass (among others). Ironically, in the fields of literature, architecture, art, film, and music alike, Chinese intellectuals and artists have been turning more and more frequently to Tibet as a source of inspiration.
Lhasa, like many large cities around the world, has abundant outlets for prostitution, gambling, and drugs. Exiled Tibet leaders and Western NGOs try to attribute such “vices” found in Tibet’s cities to cultural corrosion due to the Chinese presence. The Washington based International Campaign for Tibet, represented by its main public exponent, the actor Richard Gere, has stated: “We are concerned that more and more young Tibetans are being tempted by the very worst aspects of Chinese culture.” However, none of the “vices” complained of are specifically Chinese, and might equally be attributed to the influence of “the West”. While exiled Tibetan leaders and Western NGOs object to the cultural impact of the Han-Chinese in Tibet, they are usually much less concerned about the Western influence on traditional Tibetan culture.
Even the late Elliot Sperling, an expert on Tibet and passionate supporter of the exiled Tibetan cause, observed that “within certain limits China does make efforts to accommodate Tibetan cultural expression” and “the cultural activity taking place all over the Tibetan plateau cannot be ignored.” Other supporters of the exiled Tibetan cause, including Tibet scholar Professor Robert Barnett and German Green Party leader Antje Vollmer, also recognized the inaccuracy of the cultural genocide claim.
It has been said that the notion of genocide is marked by conceptual confusion, often compounded by its rhetorical and populist use on the part of those seeking to inflame and stigmatise social and political discourse. It is equally common for nationalists to deploy a charge of cultural genocide against changes they oppose in traditional lifestyles. The Dalai Lama often states that he is concerned most of all about the preservation of culture. His main international alliance, however, is with politicians in the US, a country whose hegemony plays a major strategic role in eroding traditional cultures, including in Europe, China and Tibet.
The unanimity on pacifism
But let’s go back to the few crucial days before the International Olympic Committee met in Moscow in 2001 to award the 2008 Games to Beijing. Gelek Rinpoche approached the General Director of the International Olympic Committee as envoy of the Dalai Lama, and claimed that there “has not been one single terrorist incident in all the 50 years of the Tibetan struggle for independence”. The dogmatic stance on non-violence was always effective in obfuscating memories and attracting consent. Yet Gelek Rinpoche must have remembered the bombings in Lhasa, the large-scale armed revolts, the guerrilla warfare, the large quantity of weaponry airdropped by the CIA, the gangs of rioters that burned dozens of policemen and killed hundred of civilians, the hate campaigns demonizing opponents of the Tibetan government in exile, seen as antagonistic to the authority of the Dalai Lama, the oppressive measures against the Dorje Shugden religious practice banned and considered heretic by the Dalai Lama, the related series of dynamite blasts in the Tibetan Dartsedo and Lithang counties driven by hatred of Dorje Shugden practitioners, the endorsements of terrorism by the largest Tibetan exile organization, the Tibetan Youth Congress (TYC) and its extreme nationalist slogans, like “no Chinese in Tibet is innocent”… while the Dalai Lama encouraged others to use such expressions to make himself look more conciliatory in comparison.
In fact, exile leaders have only in the last few decades claimed that nonviolence is essential to Tibetan culture and underlies Tibetan strategy. While the Dalai Lama gives a speech every March 10 to mark the 1959 Lhasa uprising, his first mention of nonviolence in that speech only came in 1988. And it was only in 1996 that the Tibet Parliament in Exile adopted nonviolence as a fundamental principle of the Tibetan Government in Exile.
Over the years, the Dalai Lama propagated its “middle way” approach of Tibet as an autonomous region inside China, with the use of such terms as “peace” and “non-violence”, affecting compassion and benevolence in order to gain international empathy and support. Looking beyond the conciliatory words and charismatic smile, however, it is not difficult to find evidence that the exiled Tibetan leadership has been willing to both threaten and resort to violence, and to carry out violence under the guise of non-violence. In truth they have never abandoned their ultimate goal of “Tibetan independence”. This undisclosed intent is explicitly reflected in all known Western-based NGOs advocating for human rights in Tibet which openly proclaim “Tibet Independence” (or “Free Tibet” or in the Tibetan language “Rangzen”) as their ultimate objective.
The image of a pacifist Dalai Lama facing a belligerent China has obstructed any settlement of the Tibet question. It has reinforced the idea that a “Free Tibet” can only be possible if China disintegrates. It has allowed Western elites to demand that because the Dalai Lama is perceived as a “man of peace” China has to negotiate with him unconditionally, which it would not do unless he first accepted Tibet as an inalienable and legitimate part of China. Because he refused to do so, the Chinese government linked him to hostile Western forces who seek China’s dismantling.
However, in recent years, the massive economic power China has become has made the Dalai Lama a political danger for an increasing number of world leaders and nations, who now shy away from him for fear of inciting China’s ire or endangering economic relations with China. Even Pope Francis, considered an audacious religious leader, reportedly declined a meeting in Rome with the Dalai Lama. And President Donald Trump, who might be expected to endorse the decades-long US efforts to destabilize China and to back US-based NGOs active in propaganda campaigns for human rights in Tibet, suggested that financially supporting the “Free Tibet” cause is a “waste of money”. Of late, even the Indian authorities hosting the Tibetan leadership and the Dalai Lama have cancelled important commemoratory events with him.
In reality, the Dalai Lama’s persona impedes a compromise for as long as the discourse prevents differentiation between his religious and political roles and the narrative remains a binary one which idolises him as peaceful and demonizes China as the brutal perpetrator of a cultural genocide in Tibet. China has over the last three decades relaxed draconian and cruel Mao-era rules, by opening the door to private sector capitalism. With its adoption of capitalistic mechanisms, China has accumulated immense financial assets which are today vital to the nourishment of the worldwide economy, particularly in Western countries that have accumulated huge debts.
Also over the last three decades, China has relaxed the draconian Mao-era rules on religion by allowing individuals to practice a religion of their choice. There are now significantly more adherents of Buddhism than members of the Communist Party – there are 90 million members of Communist Party of China, compared to some 250 million Buddhists and 200,000 registered Buddhist monks. Additionally, the Chinese president, Xi Jinping, is constantly moderating his attitude to Tibet and Buddhism, among other reasons because his wife is profoundly Buddhist.
The reverence for (non)-violence
When in 2001, Gelek Rinpoche approached the International Olympic Committee to protest against the 2008 Olympic Games being awarded to Beijing, he must have remembered the distant years before the Chinese invasion in 1951, when the Tibet was ruled by aristocrats, clerics, and manor owners and had a brutal social hierarchy and a system of serfdom similar to pre-feudal times; he must have remembered the distant year of 1959 when the Dalai Lama and two of his brothers enrolled by the CIA, along with other clerics and aristocrats, launched a large-scale armed revolt against officials stationed in Tibet and massacred local Tibetans who supported Chinese communism. The Dalai Lama was not only well-informed of the action but gave it his active blessing. Years later he wrote in his book My Spiritual Autobiography: “Every one of them is armed to the teeth, and even my personal cook is carrying a bazooka, with his waist belt full of ammunition. He has been well trained by the CIA…”
After the Dalai Lama fled to India, escorted by his entourage of clerics and aristocrats, he reorganized an army and waited to fight his way back to Tibet. In 1960 in Mustang, a county in northern Nepal, he rebuilt an anti-Chinese guerrilla force. In 1962, with support from external powers, he built a Special Frontier Force composed of mainly Tibetan exiles, most of them from aristocrat families. From 1961 to 1965, these forces sneaked across the border 204 times to harass Chinese border troops and Tibetan civilians. According to disclosed US archives, the Dalai Lama first established contact with the US government in 1951. During the armed rebellion in Tibet, the CIA not only sent agents to help the Dalai Lama and his entourage of clerics and aristocrats to flee but also purposefully trained militants to support his forces and airdropped a large quantity of weaponry.
On September 21, 1987, the Dalai Lama made a speech to the US Congress, calling for Tibetan independence. On September 27, in the square of the Jokhang Temple, a group of lamas shouted separatist slogans, attacked police, and injured many civilians. On October 1, a small gang of rioters raided the police station on Barkhor Street in Lhasa and burned seven cars, leaving dozens of policemen injured. The rioters proclaimed that the Dalai Lama was fighting for Tibetan independence. They demanded the support of spectators and the general public and threatened personal retaliation against those who failed to join them. On March 5, 1988, during the Monlam Prayer Festival, a gang of rioters stormed into local Party and government offices and police stations around Jokhang Temple and Barkhor Street, smashing and burning cars and shops, leading to 299 police and civilian casualties. From March 5 to 7, 1989, Lhasa witnessed another riot in which one policeman was shot dead, 40 others were injured, and 107 shops, 24 government offices, primary schools and neighbourhood committees were destroyed. On March 11, 1992, nine Tibetan separatists attacked the Chinese embassy in India with firebombs.
The (non)-violence around the Olympic Games 2008 in Beijing
“The Olympic Games in 2008 in Beijing will be a symbol of peace, friendship, and progress, which is welcomed and cherished by all peoples” commented the International Olympic Committee in 2001, during the ceremony awarding the 2008 Games to Beijing.
In May 2007, the Tibetan independence movement, including exiled Tibetan leaders and Western NGOs supporting them, held a meeting in Brussels and agreed on a strategic plan to launch a campaign to boycott the 2008 Beijing Olympic Games. Later, two NGOs in the US (International Campaign for Tibet and Students for a Free Tibet) and two in India (the Tibetan Youth Congress and the Tibetan Women’s Association) advocating for human rights in Tibet put forward a proposal for an uprising in Tibet, believing the 2008 Olympic Games was the last chance to achieve Tibetan independence. They decided to take advantage of this occasion while China was the spotlight of international attention before the start of the Olympic Games.
On January 4 and January 25, 2008, Tibetan independence activists held press conferences in New Delhi, releasing proposals for this uprising, spreading the news on more than 100 websites, and encouraging the instigation of constant large-scale uprisings for March 10, 2008, the date corresponding to the anniversary of the uprising in 1959. On March 10, the Dalai Lama made a speech, urging his followers within Chinese territory to engage in violence. On the same day, the Tibetan Youth Congress (TYC) made a statement, claiming that it would “now seize a most important opportunity never before seen in our struggle for independence – the upcoming Olympic Games,” and that it would “spare neither blood nor life for Tibetan independence.”
Uprisings took place in Tibet four days later than planned, on March 14, 2008. That day, a mob converged in the downtown area of Lhasa, assaulting innocent bystanders with weapons including rocks, daggers, and clubs, smashing and looting vehicles, shops, banks, the Telecom business offices, and government properties, severely disrupting social order, and causing heavy losses of life and property. During the violent incidents, there were over 300 cases of arson, while 908 shops, seven schools, 120 houses, and five hospitals were severely damaged. Ten bank branches were looted, at least 20 buildings were burnt to the ground, and 84 vehicles were torched. Most seriously, a total of 18 people were burned or hacked to death, and 382 people were injured – 58 of them seriously.
After these incidents, the Dalai Lama himself released a declaration through his personal secretariat, describing the riots as “peaceful protests.” On March 16, he said in an interview with BBC that he would not ask the rioters to stop because their demands came from the Tibetan people, and he had to respect their will. In the meantime, the Tibetan Youth Congress (TYC), passed a resolution to “immediately organize guerrillas to infiltrate China for armed struggle.” The head of the TYC claimed that they were ready to sacrifice another 100 Tibetans to reach complete victory.
Western NGOs advocating for human rights in Tibet, and in particular activists from “Students for a Free Tibet” engaged in a series of sabotage activities directed at the Beijing Olympic Games. They interfered with important ceremonies, including disrupting the torch-lighting ceremony in Greece, and attempting to grab the Olympic torch during the torch relay in various countries, provoking a strong reaction from the international community and a pandemonium at the International Olympic Committee in Lausanne, as its General Director, Urs Lacotte, revealed during a lunch at the edge of Lake Geneva, explaining how the Committee did not foresee such an organized outbreak.
The main claims of the activists were: China continues its crackdowns on freedom of religion in Tibet; China is using the Olympics to misrepresent the unique culture of Tibet as Chinese, as it has chosen an endangered Tibetan animal, the Tibetan antelope, as one of its Olympic mascots; China has failed to follow the call of the International Campaign for Tibet to end human rights abuses in Tibet and negotiate a peace agreement with Tibet’s exiled leader, the Dalai Lama…
The self-immolation marathon after the Olympic Games 2008
After the Western media coverage of riots in Tibet in 2008, in which the Dalai Lama was identified as a peacemaker to whom China refused to talk, the proportion of journalists who saw China as the world’s biggest threat doubled. Time magazine named the Dalai Lama the most influential person in the world and the Western general public saw the Dalai Lama as the most respected world leader. The notion he is a pacifist was so pervasive that it circulated from the West to China for some months.
Following some success in drawing media attention during the Beijing Olympic Games incidents, the exiled Tibetan leadership began to encourage Tibetan lamas and lay followers inside China and India to engage in acts of self-immolation, leading to a series of such incidents in a number of regions. This ongoing campaign started in 2009 but had its roots in a few isolated cases that began around 1998 outside Tibet.
The US-based NGOs stated that self-immolation acts by Tibetans were an assertion of the Tibetan identity in the face of “cultural genocide”. This proclamation, however, disregarded the fact that suicide is forbidden in Buddhism. The campaign was heavily exploited around the world and praised by NGOs advocating for human rights in Tibet, but also by NATO-backed think tanks. These included Freedom House, whose specific role is to monitor freedom of the press around the world and which ranked Tibet as the worst possible place, saying self-immolations were the result of a lack of freedom. However, the most extreme illustration of the alliance of the US government in the self-immolation campaign can be seen in the documents of The Congressional-Executive Commission on China (www.cecc.gov). This body promotes the self-immolation strategy aimed at achieving “Tibetan freedom” and the Dalai Lama’s return in Tibet, and sees the collapse of China as an implicit goal.
In some cases acts of self-immolation were exploited to support fundraising activities, particularly in the US, and to obtain governmental subsidies for NGOs or the exiled Tibetan leadership, with wide support from cultural exponents like Hollywood actors and famous musicians, whose numbers had boomed since those distant afternoons when the poet Allen Ginsberg, the composer Philip Glass, the author Robert Thurman and the actor Richard Gere first laid their plans to drum up support for US-based Buddhist organizations.
On May 29, 2012, at a TYC candlelight rally to glorify Tibetans who had set themselves alight, the leader of the rally claimed, “Tibetan independence will neither fall from the sky nor grow from the earth; rather it relies on our efforts and action and needs sacrifice.” From September 25 to 28, 2012, the exiled Tibetan leadership convened the Second Special Meeting of Tibetans in Exile, proclaiming self-immolation as the highest form of non-violence, hailing its victims as “national heroes,” building memorials and raising special funds for them. They still vigorously preach that “self-immolation does not go against Buddhist doctrine” and that “self-immolation is martyrdom and a Bodhisattva deed,” duping Buddhist believers in Tibet, and particularly innocent young people, and setting them on an incendiary path to ruin. The unavoidable consequence was a rapid increase in self-immolations. In addition, the TYC issued the Martyr Award in 2013 to Monks of the Kirti Monastery who self-immolated and in 2016 to self-immolators in Tibet and in exile who sacrificed their lives.
Investigations by China’s public security organs into incidents of self-immolation clearly revealed that these protesters were being manipulated and instigated by the highest levels of the exiled Tibetan leadership. Kirti Monastery in the Aba Tibetan and Qiang Autonomous Prefecture is where the greatest number of self-immolation incidents took place; it has been proved that those promoting these incidents have close links with the Tibetan exile leadership.
The investigation of the security organs revealed that the Tibetan exile leadership has four ways of instigating self-immolation: first, planning incidents from abroad through a so-called “press liaison group” based in the Kirti Monastery in Sichuan and the Kirti Monastery in India; second, sending TYC members into Tibet to incite self-immolation; third, mobilizing activists returning from overseas to assist in self-immolation; and fourth, using the Internet and NGOs’ social media reach to hype up self-immolation.
The exiled Tibetan leadership has allegedly released a Self-immolation Guide on the Internet – an instruction manual to incite and instruct Tibetans residing within China to burn themselves. The author of this manual is Chabdak Lhamo Kyab, who served for two terms as a member of the Tibetan government in exile, known now as the Central Tibetan Government (CTA) and was the head of a clandestine resistance movement and also a public relations counsellor of the Dalai Lama. He now resides in France.
The Self-immolation Guide is a book consisting of four parts: the first part advocates the idea that self-immolators are great, honourable and intrepid heroes and that both these male and female heroes should always be prepared to sacrifice themselves for a just cause. The second part gives detailed instructions on preparations for self-immolation, including picking important days and places, leaving written or recorded last words, and asking trustworthy friends to help record videos or take photos. The third part introduces self-immolation slogans, instructing victims to always shout the same slogans. And the fourth part illustrates other activities that might accompany self-immolation. The book also contains the timeline of protests since 2009; the life stories of the protesters; the international community’s support for the movement; and the exiled Tibetan leadership’s efforts to gain global support. “The book”, said one source of the leadership “has nothing to do with encouraging self-immolation”. At present, the existence of the book has been officially denied by the exiled Tibetan leadership.
Performing self-immolation in public is itself an act of violence, intended to create an atmosphere of terror and of horror. On this issue of principle, the Dalai Lama played an important role. For example, on November 8, 2011, when a new series of self-immolations had just begun, he said in an interview that the point was that self-immolation demanded courage and that “cultural genocide” was the reason behind these “courageous acts”. He thereby both showed his appreciation for and approval of self-immolators and promoted his rhetoric of cultural genocide.
On January 3, 2012, he defended self-immolation on the basis that it was superficially an act of violence, but what differentiated violence and non-violence was the motives and aims behind each act, and only an act driven by hatred and anger could be defined as violence. It was clear that he regarded self-immolation as non-violent protest. On October 8, 2012, he said in an interview that he was sure that self-immolators were sacrificing themselves with a sincere motivation and for the benefit of Buddhism and the well-being of Tibetans, and that, from the Buddhist point of view, it was a positive act. Through these words, he has repeatedly and explicitly offered his approval of and praise for self-immolation. He has also hosted a dharma assembly, in his capacity as a religious leader, to expiate the sins of the dead, chant scriptures and pray for them, a promise which turns out to be very persuasive to believers in Tibetan Buddhism. Only recently has the Dalai Lama revised his views on the effectiveness of self-immolation.
Since the Olympic Games of 2008, over 150 Tibetans have set themselves on fire in protest, including 41 monks and eight nuns. Only very few of Tibet’s Buddhist clerics or exponents of the human rights community have dared to speak out in Western countries against glorifying, praising or promoting acts of self-immolation for political gain. Also among exile Tibetans, any advocacy against self-immolation is considered incompatible with the agenda of the Tibetan government in exile, and very few would dare provoke the rage of the Dalai Lama for fear of reprisal. Recently, personalities that dared to speak out against the campaign of self-immolation were systematically attacked on social media in what appeared to be a coordinated slander campaign, organized through anonymous accounts. One luminary who did speak out was Tsem Tulku Rinpoche, the spiritual leader of the Malaysian based Buddhist organisation Kechara, who publicly and forcefully opposed the campaign of self-immolation, particularly after a succession of incidents prior the vote of the US budget bill 2018, which included grants to the exiled Tibetan leaders that were in danger of being rejected by Congress. He was severely punished on the social media for his call for non-violence and was tagged a ‘Chinese spy’ because he upheld a core Buddhist teaching of non-violence.
The fading unity for the Tibetan cause on the path to the 2022 Winter Olympics in Beijing
These violent initiatives succeeded in gaining world media focus on the Tibetan issue but ultimately failed to change the equation with China and tilt the balance in favour of the Dalai Lama’s government in exile. As questions of the Tibetan leadership’s adequacy became louder over the years, the Dalai Lama and exile leaders have constantly stoked the flames of division between Tibetans, sowing discord and inciting inter-religious animosity and divisions. Part of the motivation it was to distract Tibetan refugees from the reality that their exiled Tibetan leaders were unable, after 60 years, to offer a realistic prospective for their return to Tibet, or at least formulate a plan for their integration into Indian society.
Since the failure of the attempted rebellions in 1959 and 2008, a series of particularly divisive issues for the Buddhist community, both within Tibet and abroad have been introduced by the Tibetan leadership. The Karmapa controversy was one where the Dalai Lama created conditions for rivalry to beset the Karma Kagyu sect, the second largest school of Buddhism which prevails until this day. As for the largest Tibetan Buddhism school, the Gelug, enmity was introduced by outlawing the worship of one of the sect’s most popular deity, Dorje Shugden, a nearly 400-year old practice that began in the 17th century and has become a major practice in Tibetan Buddhism. The Dorje Shugden de facto ban has already existed for two decades since it was initiated by the Dalai Lama and has slowly stirred disunity in Tibet and among the exiled Tibetan communities, leading the Chinese government to consider the Dorje Shugden conflict an important front for undermining what it says are efforts promoted by the Dalai Lama aimed at destabilizing China.
This religious hostility has been fed by considerable propaganda and counterpropaganda efforts during the last two decades and it is still an ongoing battle. It has been continuously observed that Dorje Shugden followers, monks, and monasteries in Tibet and abroad are used as scapegoat and portrayed as heretic, demonic and sectarian, and are branded as Chinese Communist Party supporters or Chinese spies by most NGOs advocating in western countries for the exiled Tibetan leadership’s goals. In historical terms, the situation and implications may call to mind Martin Luther’s reformation of Christianity centuries ago.
Most nations acknowledge Tibet as a part of China, while none formally recognizes the exiled Tibetan leadership, the Central Tibetan Administration (CTA) – yet a number of them sustain the cause of the exiles in other ways. Because of the need for Western support of the exiled government and the significant role played by externally-based NGOs supporting Tibetan independence, democratizing elements have been added to self-governance in exile, and the vocabulary of human rights, development, environmental protection, and so forth has been deployed by the CTA and supported by Western NGOs. In reality, spirituality and aristocracy are linked through Tibet’s traditional system of theocratic government, in which politics and religion were tightly knit. Many exiled government officials continue to promote this system as ideal for Tibet, including the present prime minister of the CTA, Dr. Lobsang Sangay, who recently reaffirmed the urgency of strengthening efforts to facilitate the return of the Dalai Lama to his native land and his former residence in Lhasa, the Potala palace.
However, the repeated requests of many exile leaders to pass orders banning critical voices from any Tibet-related events, accusing such voices to be Chinese spies and/or Dorje Shugden heretics, stand in stark contradiction to democratic principles. Critical voices expose, for example, claims of corruption inside the CTA; some complain that instead of focusing on practical efforts to improve the everyday lives of Tibetan refugees in India, the CTA has often preferred political point-scoring against China; others still have expressed criticism of the Dalai Lama or of the CTA’s theocratic orientation.
The US President’s attitude reflects the waning support for the Tibetan cause and a change in perception of the Dalai Lama’s role as peacemaker. The cause has suffered a gradual dissipation of international goodwill, particularly among the CTA’s immediate neighbours and Indian hosts. Countries such as India, Mongolia, and Nepal have traditionally tolerated the activities of the exile leaders and the Dalai Lama, and by doing so risked annoying China, the region’s most powerful nation.
“The Winter Olympic Games in 2022 in Beijing will be a symbol of peace, friendship and prosperity, which is welcomed and cherished by all peoples” comments the International Olympic Committee, recognizing its world-class venue legacy from the 2008 Olympic Summer Games. In the last years, the Dalai Lama has embodied an intensified sentiment of political embarrassment among world leaders who seek stable political and profitable economic alliances with China. Beijing 2022 will form part of the future narrative of Tibet and it will be interesting to see if the support for the Dalai Lama will completely evaporate into the clouds of nostalgia for the poems of Allen Ginsberg, the music of Philip Glass, the books of Robert Thurman or the movies of Richard Gere.
Political leaders often conquer international stature by conducting war, but the personas of only a few men of peace – such as Gandhi, King, and Mandela – are prominent. The Dalai Lama’s “apostle of nonviolence” persona was built at the end of the Cold War, alongside a campaign to internationalize the Tibet struggle by fostering protests in Tibet, mobilizing Western converts to Tibetan Buddhism, and exploiting the Dalai Lama’s capacity to engage Western political and media elites. Boosted by his 1989 Nobel Peace Prize, US excoriations of China and the expectation of its collapse after the Cold War, the Dalai Lama became an international symbol of peace. He successfully combined his divine significance with his political struggle in exile under a veil of non-violence, compassion and selflessness. After decades of internationalization as he reaches the last lines of the book of his life, synonyms of the Dalai Lama as peacemaker are still discursive givens. Only time will tell whether he will be immortalized on the celestial Olympus with Gandhi, King, and Mandela or exiled from the collective memory of mankind.
Demilitarization between the two Koreas
At domestic level, Kim Jong-Un is pursuing two original and interesting policylines within North Korea: the rise of a new generation to power and the evident and stable economic expansion.
Under Kim Jong-Un’s leadership, the private segment of the North Korean economy has undergone great development and the new class of young people rising to power – who epitomize the general rejuvenation of the North Korean society – is also an unknown factor for the forthcoming talks between the two Koreas and the talks between the United States and North Korea.
Certainly Supreme Leader Kim Jong-Un rules without problems, but he shall consider the new climate prevailing within his Party.
At military level, according to the data provided by the US intelligence services, North Korea has an arsenal of 36 nuclear warheads.
Only in 2017 did North Korea fire 23 missiles.
During the bilateral talks with South Korea, however, Kim Jong-Un also said he wanted to impose a moratorium on North Korea’s nuclear missile launches between March and April 2018.
Complex signs hard to decode, but certainly designed to creating a new perception of North Korea in South Korea and in the rest of the world.
The summit meeting will take place on April 27, 2018, south of the demilitarized area of Panmunjom, in the Peace House, near the “Truce Village”- the site where the Korean Armistice Agreement was signed in 1953.
An area belonging to South Korea – and indeed, this is a further sign conveyed by the North Korean leader.
The meeting will take place between the two Presidents, namely Kim Jong-Un for North Korea and Moon Jae-In for South Korea.
Two inter-Korean summits had already been held in 2000 and 2007.
The summit meeting held in 2000 took place when the Sunshine Policy had been ended abruptly by the South Korean President, Lee Myung Bak, a politician and businessman recently arrested on charges of bribery, embezzlement and tax evasion alleged to have occurred during his presidency.
The summit meeting held in 2007 focused on the 1953 armistice between the two sides and on the economic relations between North and South Korea, as well as on the issues regarding “human rights”.
For the next summit meeting scheduled for April 2018, North Korea has clearly stated its willingness to denuclearize the whole peninsula, maintaining that there is no need for nuclear weapons when the survival of North Korea is fully ensured.
Nevertheless, the United States has the weapons in South Korea – with 23,468 US soldiers and five divisions -as well as the greatest ability to oppose North Korea militarily.
Moreover, US commands in South Korea often organize exercises against North Korea after its hypothetical invasion of South Korea, with evident results for the South Korean population.
Within negotiations, this shall obviously be followed by the cessation of any nuclear threat to North Korea, regardless of its origin -that is from the United States and, with the conventional threat alone, from Japan.
The South Korean President has also said that North Korea wants to have “frank and candid” talks with the United States, especially on the denuclearization of the entire peninsula and on the future mutual recognition between the two countries.
The more we go forward, the less pro-American South Korea will be – not for the influence of North Korea, but for the same effect suffered by Western Germany during the “cold war”: the Federal Republic of Germany maintained it was against the German Democratic Republic’s regime, but it was aware that if the nuclear conflict had started, it would have been the first and only one to suffer from its consequences.
Hence if results are achieved in the talks with the United States, North Korea will stop any missile or nuclear test in that period.
As reported and certified by all South Korean sources, North Korea really wants to advance quickly along the path of dialogue with South Korea, which is therefore a stable direction of the North Korean strategy.
Hence, regardless of the choice made by the United States, this is a progressive and inevitable decoupling between South Korea and the United States.
Once Kim Jong-Un’s offer of dialogue is also made to the United States, the latter can respond in two ways: US adherence to the full denuclearization of the Korean peninsula or the persistence of a “cold war”, with hot phases between the United States and North Korea.
In the former case, the strategic transformation of the Asian peninsula would create a severe military void for the United States, which could respond by increasing its forces in the South Pacific Ocean or in Japan, thus maintaining a serious threat to North Korea.
A serious albeit remote threat, posed by countries that are not willing to bend to US wishes, such as Japan.
In the latter case, the constant presence of US nuclear weapons in South Korea – which would be hard for South Korea to manage from a political viewpoint – would cause a not too much symbolic escalation by North Korea.
At political level, the choice for the United States is very sensitive and not devoid of side effects: South Korea could stop granting some bases to the United States or increase the rent significantly. Or it could make the United States understand that it does not want to become a nuclear target for North Korea.
Japan, which is already continuing its autonomous rearmament, could tell the United States that, beyond the current limit of the US military presence, there is no longer room for it, or that the independent Japanese missile and naval apparatus could have very different strategic aims.
Let us imagine that Kim Jong-Un has analysed very well all these logical connections of the negotiations between the United States, South and North Korea.
Nevertheless, the political climate between the two Koreas has changed and some analysts have spoken about the end of the “1990 spirit”.
In the previous relations between the two Koreas for this year’s Olympic Winter Games, the primary goal of the South Korean leader was above all holding peaceful Games without political tensions.
There had been, at first, Kim Jong-Un’s end-of-year speech aimed at peace with South Korea which, however, appeared to everybody as a usual charm offensive, typical of North Korea’s foreign policy.
Moreover, South Korean President Moon Jae-In had been elected by a vast majority of voters who wanted peace with North Korea and, above all, wanted to avoid nuclear or conventional war on the Korean peninsula.
This also counted.
In the New Year’s Day of 2018, the North Korean leader had mentioned his country’s victory in the field of nuclear weapons, saying that by now the optimal standard for a nuclear response or attack had been achieved.
This could make us think that, from now on, the North Korean leader wants to underline the purely economic side of the “Byungjin Line” developed by Kim Jong-Un to pursue the parallel goals of economic development and a robust nuclear weapons program, thus making them interdependent.
Hence, once stabilized national defence, North Korea wants to deal simultaneously with the United States and South Korea.
There had been a diplomatic “offensive” towards the United States a few months ago, but no results were reached.
The “olive branch” offered to South Korea was instead immediately accepted.
The visit of Kim’s younger sister and of the President of the Presidium of the Supreme People’s Assembly of North Korea, Kim Yong Nam, to South Korea had already taken place – the powerful symbol of a new North Korean policy line, with a subsequent visit paid by some South Korean leaders to North Korea, received by Kim Jong-Un in person.
This happens very rarely.
A first hypothesis is the following: North Korea wants to suspend nuclear and missile tests for a certain period of time and plans to use this period of time to improve relations with South Korea.
Hence North Korea may not be interested in the full disarmament of the country and of the whole peninsula.
China, however, could later play a decisive role in inter-Korean negotiations.
In fact, if the process of dialogue between the two Koreas and between North Korea and the United States continued long enough, China could propose to the UN Security Council a Resolution aimed at lifting at least some of the sanctions on North Korea.
The Resolution could be rejected by the United States and, possibly, by France and Great Britain, but this would enable China to unilaterally reopen its markets to North Korea, by later accepting to act as a broker for other countries wishing to trade with North Korea.
The Russian Federation would follow Chinese operations closely.
In this case South Korea would have two options available: to definitely close the Kaesong industrial zone or accept China’s proposal, which would certainly be very attractive from the economic viewpoint.
In this case the United States could not do much more than exert military and political pressure on South Korea.
Another hypothesis is the following: South Korea may not want to go beyond the limit of current sanctions on North Korea – and China would not show any reaction.
Hence we would have the full reactivation of North Korea’s missile and nuclear program, with equal and opposite reactions by the United States.
Nevertheless, South Korea must be careful, because military tension could stop also its economic development, not just North Korea’s.
Conversely, if the negotiations between South and North Korea thrive, for the United States this will mean a radical rethinking of its military and strategic presence in Asia, from support to Taiwan up to the acceptance of Korean reunification under the auspices of the People’s Republic of China.
Therefore, the United States should take part and play an active role in the Korean bilateral negotiations, without preconceived close-minded attitudes towards North Korea which – once new friend of the United States – could influence also the Chinese and Russian policies in a pro-US direction.
The real danger for the United States is nuclear proliferation.
As Kissinger said recently, “if North Korea keeps nukes, other countries will seek them”.
The real danger for the United States is a mass of small countries with so many nuclear weapons as to prevent the US military and commercial transit through some very important areas, which could be denied to relations with the United States.
This would mean the end of US global power.
This is the reason why the United States has always and almost obsessively opposed nuclear proliferation outside the traditional China-Russia-India-Pakistan-USA context.
Hence if the negotiation on the freezing of North Korean nuclear power were successful, the United States would gain a free and uncontrolled right of passage to Southeast Asia and the Straits of Malacca, which are still essential for the world market and for the military and intelligence control of the whole South Pacific region.
Will the United States be able to use every aspect of the negotiations between North and South Korea, which will soon extend to the United States?
What role will be played by the selective maintenance of sanctions or by their removal, with subsequent economic negotiations between the United States, China and Russia?
For the time being forecasts are uncertain, apart from the evident goodwill of both Koreas.
The current financial regulation in China
The power of a newly established Chinese public organization, namely the Financial Stability and Development Committee, is growing. Said organization was created precisely on November 8, 2017.
It is an important organization under the State Council’s direct control. Indeed, it is an office of the Council itself which will deal mainly with China’s financial stability and with all matters concerning economic development and monetary and capital stability.
More specifically, the Committee will be tasked with deliberating major national programs for regulating the financial system, for organizing monetary policy with the Central Bank and for defining tax policies and the related fiscal and industrial actions.
This Committee will also be responsible for analysing international and domestic financial situations, identifying the greatest global financial systemic risks, as well as studying the related conditions and finally defining the ways for reaching financial stability.
The important choice made in relation to this Committee is that it will be chaired by the Chinese Vice Premier, Ma Kai.
The idea of creating this organization had been suggested directly by President Xi Jinping during the National Financial Work Conference held on July 14-15, 2017.
The Committee will also strengthen the macro-systemic policies of China’s Central Bank. In fact, it is a matter of regulating and stabilizing the Chinese financial market, which is worth 40trillion US dollars and is one of the largest in the world.
The Chairman of the Committee and Vice Premier, Ma Kai,was born in Jinshan, a district of Shanghai, in 1946.
In the mid-1990s he was elected Vice-President of the National Planning Commission.
He was Deputy-Head of the State Council from 1998 to 2003 and also Minister for National Development from 2003 to 2008. He was appointed President of the National School of Administration and later Head of the Office for the development of small and medium-sized enterprises.
In fact, the Committee will also be tasked with coordinating tax and financial policies and tuning them with the long time schedules of the industrial system, while the collaboration between the Committee and the People’s Bank of China will allow the regulation of the 15 trillions currently invested in financial products throughout China.
With the creation of this Committee, high-risk investment or massive bank loans to buy securities will no longer be allowed, while it will be mandatory to set 10% of managers’ profits aside.
China is currently turning its old role as “world factory” into that of a modern consumer-driven economy.
Hence the need to regulate corporate and retail finance.
There are three issues underlying the new Chinese financial regulation: a) booming loans, the majority of which are requested by businesses and local governments; b) complexity, considering that risky creditors have moved away from banks, due to the complexity of rules, towards less structured products, while Chinese banks currently offer mainly financial products for the long-term management of household and business savings.
The third issue is c) guarantees. With a view to preserving their reputation, Chinese banks often offer even compensation to their clients who have lost money as a result of certain investment, which leads them to miscalculate their risk share.
Hence an extremely fragmented banking system which is hard to control.
The Chinese systemic risk must be kept well under control: financial assets have grown four foldover the last decade, from 310% up to 510% of the GDP, which, however, has grown by 2.5 times over the same period.
The expansion of credit has been led by the public sector and by its very poor regulation, with the expansion of shadow banks, non-orthodox credit and particularly risky – but attractive – financial products for private investors.
Credit growth has already declined, while corporate access to capital has also decreased considerably.
For the Party, however, the fragility of the financial system arises from the excess of leverage and debt investment and from the excessive debt in many sectors of the real economy, while credit has expanded too rapidly in the financial sector.
In late 2016 the average national leverage amounted to 247%, while companies’ leverage was 165% in the same period.
Definitely too much debt for companies and individuals, far beyond the international standard.
As President Xi Jinping has pointed out, the control of aggregate money supply has been severely lacking.
President Xi Jinping has also noted that the financial institutions’ general control has been missing and the State has focused only on the individual links of the chain of financial audits.
President Xi Jinping has also maintained that the State has been unable to control major financial companies.
Moreover, the Chinese government’s interest in financial matters has never been negligible.
The National Financial Work Conference had been created as early as 1997.
Later, based on the analysis of that select group, the first Chinese sovereign fund, namely China Investment Corporation, was created in 2007.
A structure that can currently boast to have capital to the tune of 813.5 billion US dollars.
The fifth National Financial Work Conference was held in July 2017, simultaneously with the creation of the Committee.
As the CPC noted, all this was designed to reach “national financial security”, mainly with a view to backing the aims of the 13th Five-Year Plan.
President Xi Jinping also thinks that the new Committee shall a) deal with the real economy and b) combine and harmonize social development with economic development.
According to President Xi Jinping, finance is never disconnected from the social context in which it operates; c) financial regulation is always aimed at eliminating the systemic risk and d) reaching national financial stability.
Stability first and then development – this is President Xi Jinping’s belief.
Furthermore, local governments shall follow the central government’s rules. Any failure to report the financial risk will be regarded as an administrative irregularity.
This will be very useful, considering the ongoing trade war between the United States and China.
In fact, China has resorted to the WTO dispute settlement mechanism against the duties levied by President Trump.
It is worth recalling that the United States has levied duties equal to 25% on imported Chinese goods, for a total value of 50 billion US dollars.
So far these duties have been levied only in the aluminium and steel sectors.
China has responded immediately by levying equal duties on US products such as soy, pork and vegetables.
The immediate US countermove has been the doubling of duties on aluminium and steel up to 100 billion dollars.
One of the reasons for the current clash is certainly the forthcoming mid-term elections for which President Trump wants to keep on winning the support of the Rust Belt protectionist voters who enabled him to rise to the White House.
Moreover, according to the universal supply chain system, many of the Chinese products taxed by the United States come from South Korea, Taiwan and even from the European Union.
Hence the Chinese pressure could harm US farmers and the whole US middle class, as well as some of US best allies.
Therefore, while China’s recourse to the WTO has not slowed down the aggressive posture of the Chinese economy towards the United States and the European Union, the aim of the current duties is to force China to revalue its currency, so as to rebalance the deficit between China and the United States, with the latter already recording a trade deficit with China to the tune of over 375 billion dollars.
Reading between the lines, President Trump wants a decrease of Chinese duties on US cars, so that there is an increase in China’s purchase of US semiconductors and, in any case, a greater share of the huge Chinese market for US companies.
Furthermore, China undermines intellectual property in the advanced sectors of computer science and Artificial Intelligence.
Finally, for the United States, the issue lies in hitting Chinese innovation and the “Made in China 2025” project, which is supposed to ensure China’s global strategic superiority in cutting-edge products, robotics and advanced infrastructure.
If everything goes well, at the end of this trade war, China will impose on the United States a network of joint ventures and selective openings for US products on the Chinese market.
That is what the new Chinese financial authority is for: to raise capital for the State’s primary projects and to protect China’s finance from the turmoil that could be caused by the monetary and economic imbalances resulting from the entry of foreign liquidity into the Chinese market.
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