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China, Nepal to focus on cross-border Railway

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Like USA and Russia that have assumed Asia pivot to influence the continent, China also has its own Asia pivot but it also has South Asia pivot too trying to woo the nations to come under its  new Silk  route program nicknamed the ‘One Belt, One Road (OBOR)’ initiative. 

China’s South Asia pivot is yielding fruits as it has been able to rope in maximum of the region: Pakistan, Bangladesh, Sri Lanka and Nepal are now the satellite countries of Beijing, leaving very little scope for India to manipulate or maneuver. Only one country that stays behind the military prowess of India is Bhutan which maintains economic relations with New Delhi as most of the food stuff and other manufactured goods is has come from India. Afghanistan has plenty of compulsions not to annoy economic power India that liberally releases funds for Kabul and also to bowl harmless balls to Indian military batboys for 100s and 50s.

Nepal is one of nations that benefits maximum from Chinese extra enthusiasm for recapturing the Old Silk Road for making itself the real super power and for this reason Katmandu is willing to  annoy New Delhi, though it takes care not to  strain the relations with India.

China and Nepal have agreed to start technical works to build a cross-border railway link via Tibet to boost connectivity.  This was decided during the recent visit of Nepalese Deputy PM and Foreign Minister Krishna Bahadur Mahara to Beijing. “Both sides have agreed to move forward technical works relating to construction of Nepal-China cross-border railway line.

China has also developed close relations with Sri Lanka during the regime of former president Mahinda Rajapaksa whose nearly decade-long tenure was ended by Sirisena in 2015.  Also, the USD 1.5 billion Chinese-funded Colombo Port City project had sparked off security concerns in India.

China already has strong ties with Pakistan and the two countries are working closely on developing the USD 46 billion China-Pakistan Economic Corridor.

 Connectivity

 The bilateral relation between Nepal and China has been friendly and is defined by the ‘Sino-Nepal Treaty of Peace and Friendship’ signed on April 28, 1960 by the two countries. The government of Nepal, though initially unenthusiastic about its ties with People’s Republic of China, has been of late making efforts to increase trade and connectivity with China while also simultaneously trying to decrease its reliance on India.

The Araniko Highway that connects Kathmandu to Kodari and onwards to Tibet did not encourage dreams of multi-laned container traffic flowing down even before the 2015 earthquake. Post the quake, China closed the route after massive landslides in Tibet, leaving only one road that connects Kathmandu to Tibet – the Rasuwagadhi highway, built upon an old trade route that connected Nepal to Tibet via the Kerung pass.  It was through this highway – still under construction in most sections in Nepal, and perhaps the most affected highway during the quake – that petroleum arrived in Kathmandu in 2015 during the infamous Indian blockade. It is also this highway that will connect Nepal to the much-flaunted Chinese Belt Road Initiative (BRI), with the Chinese interested in building Kathmandu itself.

Relations between Nepal and China got a boost when both countries solved all border disputes along China–Nepal border by signing the Sino-Nepal boundary agreement on March 21, 1960. The government of both Nepal and China ratified the border agreement treaty on October 5, 1961. From 1975 onward, Nepal has maintained a policy of balancing the competing influence of China and Nepal’s southern neighbour India, the only two neighbors of the Himalayan country after the annexation of the Kingdom of Sikkim by India in 1975. Since 1975, Sino-Nepal relations have been close and grown significantly with China being the largest source of FDI, while India still remains one of the major sources of remittance to Nepal. As per the estimate of Nepalese government, there are around 2-3 million Nepalese migrant workers in India while the number of Nepalis in China is minuscule (3,500 in Mainland and 15,950 in Hong Kong) as of 2017.

In the late 1970s after the annexation of Kingdom of Sikkim by India, King Birendra of Nepal proposed Nepal as a “zone of peace” between India and China and in the 1980s, Nepal began importing Chinese weaponry. When the United States, United Kingdom and India refused to supply arms to the regime of King Gyanendra of Nepal, who had assumed direct rule to suppress the Maoist insurgency during the Nepalese civil war (1996–2006), China responded by dispatching arms to Nepal, in spite of the ideological affinity of the Maoists with China.

 After the peace process and national elections in Nepal in 2008, the new Maoist-led government announced its intentions to scrap Nepal’s 1950 treaty with India, indicating a stronger move towards closer ties with China. In 2007-08, China began construction of a 770-kilometre railway connecting the Tibetan capital of Lhasa with the Nepalese border town of Khasa, connecting Nepal to China’s wider national railway network   In a meeting between Chinese and Nepalese officials on 25 April 2008, the Chinese delegation announced the intention to extend the Qingzang railway to Zhangmu (Nepali: Khasa) on the Nepalese border. Nepal had requested that the railway be extended to enable trade and tourism between the two nations. On the occasion of the Nepali premier’s visit to China it was reported that construction will be completed by 2020. The section Lhasa-Shigatse opened in August 2014.

China last year agreed to consider building a railway into Nepal and to start a feasibility study for a free trade agreement with landlocked Nepal, which has been trying to lessen its dependence on its other big neighbour India.

Belt and Road

Nepal also signed up to President Xi Jinping’s Belt and Road initiative which is opposed by India as it passes through Pakistan-occupied Kashmir. Of late, India takes special interest about parts of Jammu Kashmir being controlled by Pakistan while does not want anyone to mention about its own occupied and heavily militarized and hence highly terrorized parts of Jammu Kashmir. As an ambitious South Asian power  India is also engaged with both USA and Israel to jointly control the world,  It has of late developed double speaks as well. 

During the high-level talks in Beijing, Mahara had requested China to forward the work relating to preparation of a Detailed Project Report for the construction of inter-country railway line giving it high priority, it said. However, China’s state-run People’s Daily has claimed that during Mahara’s visit to China early this month a deal has been struck to establish the rail link. It said the rail link includes two lines: one connecting three of Nepal’s most important cities and two between China and Nepal.

The daily, however, did not identify the Nepalese cities. The Sino-Nepali railway, which passes through the Chinese border town of Zhangmu and connects with routes in Nepal, will be the first railway by which China enters South Asia, said Zhao Gancheng, director of the Centre for Asia-Pacific Studies at the Shanghai Institute for International Studies. “Although the railway connection between China and Nepal is intended to boost regional development and not for military purposes, the move will still probably irritate India,” he was quoted as saying by the daily – the ruling communist party’s official mouthpiece.

Prime Minister Prachanda today said Nepal was keen to be involved in the One Belt One Road project proposed by China and reiterated Nepal’s commitment to the One China policy during a meeting with Chinese Defence Minister here.  General Chang Wanquan, who leads the 2.3-million-strong Peoples Liberation Army (PLA), the world’s largest, arrived here today with a 19-member delegation on a three-day goodwill visit at the invitation of Defence Minister Balkrishna Khand. Chang, the first Chinese Defence Minister to visit Nepal in 16 years, discussed with Prachanda bilateral military cooperation and the One Belt, One Road (OBOR) initiative, an ambitious project viewed with suspicion by India.

Prachanda said Nepal was keen to be involved in the OBOR project, a pet project of Chinese President Xi Jinping. He also reiterated Nepal’s commitment to the One China policy and said it would not tolerate any activity against Tibet and Taiwan. Prachanda also expressed his happiness over the cooperation that armies of Nepal and China have developed of late, the Prime Ministers Secretariat said in a statement after the meeting.

India has some concerns over the OBOR, which includes a maze of projects connecting China with Euro-Asia and is floated by Beijing as a connectivity and economic project. Thanking China for its support to Nepals economic development, Prachanda wished a complete success of Changs visit.

Prachanda is the first Chinese Defence Minister to visit Nepal after a gap of 16 years, which is a matter of pleasure for us,” said a senior official at the Defence Ministry.  The visit comes ahead of the Indian Army chief General Bipin Rawats four-day official visit to Nepal from March 28.

The Chinese defense ministers visit coincides with the first joint military exercise between the Nepal Army and the PLA scheduled later this year. Chang will receive a briefing on the joint exercise and also visit Nepal Army’s Kathmandu Valley unit. He called on President Bidya Devi Bhandari tomorrow and meet his Nepalese counterpart Balkrishna Khand and Nepal Army chief Rajendra Chhetri.

Chang and Nepalese officials discussed issues relating to bilateral military cooperation and proposed joint military exercise, according to officials.

The delegation accompanying Chang discussed the ideas floated last year by then Nepalese prime minister KP Sharma Oli during his visit to China. A possible support to Nepal Army from China was hinted at.

Prachanda visited China to take part in the Boao conference which is committed to promoting regional economic integration and bringing Asian countries closer to their development goals. He said that the main objective of his visit to China will be to build confidence though there is no plan to sign any new agreement. Prachanda said he will hold high-level talks with Chinese officials during the visit, which will be instrumental in strengthening bilateral relations. He will also meet Xi.

Hours before flying to China, Prachanda held discussions about agenda of the visit with former prime ministers, former foreign ministers and foreign policy experts at his official residence. 

With Nepal willingly joining the BRI, commentators in both Nepal and India have argued that the move signals Kathmandu’s willingness to move away from the Indian ‘sphere of influence’. With India and China now locked in a stand-off in Doklam, commentators are also asking what this means for smaller nations like Bhutan and Nepal to be in the midst of two clashing giants.

Military

Sino-Nepalese military ties are growing stronger of late. Nepal and China today began their first-ever joint military exercise with a special focus on combating terror, amidst Beijing’s increasing forays into South Asia causing concern in India.  The 10-day-long military drill “Sagarmatha Friendship 2017” that will last till April 25 is being organised by the two countries as part of their preparedness against terrorism that has posed as a serious security threat globally, the Nepal Army said.  Sagarmatha is the Nepali name of Mt Everest, the world’s highest peak.

The Chinese Peoples Liberation Army’s squad arrived in the capital to participate in the military exercise that will focus on counter terrorism and disaster response. The joint training with China marks Nepal Army’s extension of military diplomacy. The Nepal Army has long been conducting joint military drills with Indian and American Army. “A small Chinese troop will be participating in the first ever drill with an equal number of Nepali Army personnel,” said military spokesman Jhankar Bahadur Kadayat.  He did not mention the strength of the participating troops. The exercise will take place at the Army’s Maharajgunj-based Training School, where Yuddha Bhairab, Mahabir and Bhairabnath Battalions are located.

The Nepali Army has said the joint military exercise with China is a step towards preparations against the possible threat from terrorism.

It maintains that the drill is a part of its regular bilateral and multilateral military exercises aimed at sharing experiences, skills and professional knowledge which it has been doing regularly with the nations that Nepal shares diplomatic ties.

Nepal had proposed joint military exercises during Chinese Defence Minister General Chang Wanquans official visit to Nepal on March 24. Experts believe that the joint military exercise could make India uneasy as China attempts to exert influence in the region. Nepal, a landlocked country, is dependent on India for its imports.

Crises

 Nepal has just come out of its two greatest crises namely natural crisis in the form of earthquake & constitutional crisis. Both the events have shaken the roots of Himalayan country.  However, two events had contrastingly affected the India-Nepal relations. Cooperation & timely support during the earthquake proved India’s worth for Nepal & its irreplaceable geostrategic position. However, forming of new constitution & its implementation created a tense scenario between the two nations & overshadowed the Indian rescue efforts during earthquake.

In both the events China took advantage to deepen its ties with Nepal & put India on the strategically disadvantageous position, whereas, Nepal also seems to play the China card with India on India’s suggestions for the demands of Terai people and constitutional reforms i.e. for more representation of Terai people in parliament, provincial territory demarcations and issues related to citizenship rights.

In September 1961, King Mahendra had embarked on a 17-day state visit to China, where he was feted as an ‘esteemed friend of the Chinese people’. Mahendra had carried out his royal takeover the year before, and Indian PM Jawaharlal Nehru was not happy with this new development.

Big brother

Despite talks between Nehru and Mahendra, the Delhi-Kathmandu relationship continued to deteriorate under the face of cross-border attacks by the Nepali Congress rebels, and in September 1962, India imposed an “unofficial and undeclared economic blockade on Nepal” – but even as Mahendra began to get frantic and Kathmandu’s response turned ‘hysterical’ to the blockade, the Sino-Indian war began on October 20 that year.

China proposed the establishment of an economic corridor among the three countries to promote trilateral cooperation and common prosperity. Nepal can become a stage for mutually beneficial cooperation between China and India, rather than an arena for competition.

India poses to be a Big Brother in the region and refuses to make the region tension free by quickly resolving the Kashmir issue by surrendering them their sovereignty that would eventually herald a new peaceful and genuinely surrounding in the region. India needs to work to resolve the issues through diplomacy and mutual cooperation.

Indian blockade caused economic problems and social tensions problems as well as irritation in Nepal. Nepal had witnessed a shortage in essential supplies from India during the 2015 Madhesi blockade. China at that time had extended its help to Nepal to ease the situation.

 Observation

India is treating South Asia and the Indian Ocean as its backyard with a hard-line manner and the way the Indian Pm Modi went around the region soon after his rise to power vindicates that impression. .

Now it is necessary to analyze the current situation whether growing proximity of China and Nepal is a real threat for India or it’s just an overemphasized perception and if it’s a new reality in triangular relations how India is going to be affected by it.

 Nepalese nationalists in Nepal lauded the king for taking the country away from the Indian dependence. One can conclusively argue it was the 2015 blockade that turned Kathmandu towards Beijing.

China’s deepening economic ties in South Asia – set to be further strengthened through the “One Belt, One Road” initiative – would likely be followed by closer security ties as well, despite Delhi’s unease.

China hopes India can understand the pursuit of China and regional countries for common development, and be part of it. However, New Delhi doesn’t share this thinking, instead seeking to balance China and overtake it. If such tendencies in India continue, China may even fight back, because it cannot digest if its core interests are violated. “This is not what we hope for, but the ball is in India’s court,” so reads a Chinese the commentary.

 Beijing warns India of action if its interests are threatened by New Delhi’s actions. China’s Defence Minister and People’s Liberation Army General Chang Wanquan made a rare visit to Sri Lanka and Nepal, and Chinese state media warned India that Beijing will “fight back” if Delhi interferes into China’s relations with South Asian countries.

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East Asia

The nature of contemporary Sino-Pakistani relations

Syeda Dhanak Hashmi

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China has played a crucial role in maintaining regional peace and security by upholding its concept of an inclusive, cooperative and sustainable security. This has clarified the country’s stance on issues of regional concern, contributing to long-term stability and development in Asia, which includes the promotion of common development, building of partnerships, improvement of existing multilateral frameworks, rule-setting, military exchanges and proper settlement of differences.

To ensure long-term stability and prosperity of the Asia-Pacific, China has put forward a number of proposals that have been highly valued by the international community. To ensure common development is the fundamental guarantee of peace and stability, and the ‘master key’ to solving security problems. The China-proposed Belt and Road Initiative is not only a path of development but also a path of peace, as it will not only bring opportunities to the economic development of regional countries, but also provide ideas and solutions for them to solve security problems. The central theme behind the China-Pakistan Economic Corridor (CPEC) is to open new economic and trade avenues that would lead to the overall social and economic prosperity of the region. The fruit of this economic cooperation is a market far larger in scope than the one that exists because of economic conflict in the region. The envisaged economic route from Gwadar to Kashgar can serve as an alternative and economically shorter sea route instead of the far longer straits of Malacca. This has always been the most compelling reason for multilateral and regional cooperation.

Two of the most reputable theories that support the idea of regional stability, regional integration and strategic cooperation can be stated in terms of ‘economic opportunity cost hypotheses and ‘neo-functionalism’. The first theory assumes that trade and economic interdependence increases stakes amongst economically integrated nations and thereby reduces chances of conflicts erupting. Whereas the proponents of neo-functionalism are of the view that cooperation in one area produces cooperation in other areas. CPEC will pass through Gilgit-Baltistan in the north which will connect Kashgar in China’s western province of Xinjiang. Almost 80% of China’s oil is currently transported through the Strait of Malacca to Shanghai. The calculated distance is almost 16,000km and takes two to three months, with Gwadar becoming operational, the distance would be reduced to less than 5,000km. When fully operational Gwadar will promote not only the economic development of Pakistan but also serve as a gateway to the Central Asian countries.

Keeping in view the regional stability, Pakistan and India are both important neighbours for China which wants to promote trade with its neighbours. Pakistan is a victim of terrorism and that all countries were responsible for contributing towards the eradication of terrorism. But the brutalities of the Indian army in Indian-held Kashmir cannot be ignored here.

Pivot to Asia: Status quo or a challengerpower ?

Hence, regional integration is not possible as long as regional trade is sacrificed for so-called security. Pakistan needs to follow the Chinese model whose trade with India had crossed over $100 billion despite serious political issues between them. Some elements also fear that if there is peace in the region, it will challenge their predominance in the business of the state. Furthermore, the dimension of CPEC that is ignored is its potential to defeat terrorism in the region by raising and improving socio-economic conditions of the people. The Sri Lankan polity, at first divided over the role of China in the region, has come to recognize that the Belt Road Initiative approach fits well with Colombo’s goals of rebuilding a war-torn economy through enhanced connectivity. China also calls for improving regional security architecture to lay a solid foundation for enduring peace and stability in the region, and also calls on countries to properly handle differences and disputes to maintain the peaceful and stable environment in the region.

In the context of Pakistan, CPEC is often termed a game changer for the weak economy of Pakistan. The corridor project carries vital significance as it promises to elevate Islamabad’s economic growth. Unlike US aid, the Chinese aid to Pakistan has offered infrastructure and energy projects that would serve as a means to improve Pakistan’s economy. Despite the cheapness of land, Pakistan is lagging behind in connectivity which increases the trade cost. However, under the umbrella of CPEC the cost would be minimised and export incentives increased. Pakistan expects 4% of global trade. The kind of toll tax, rental fees that Pakistan will gain is roughly $6 billion to $8 billion by 2020.

A strategic and economic balance of power in the region would ensure peaceful resolution of conflicts but also enhance strategic stability leading to a win-win situation. Or by words of professor Anis H. Bajrektarevic: “Asia has to answer itself whether the newest concepts – such as the OBOR/CPEC vs. Indo-Pacific oceanic triangling – are complementary to its development or the heartland-rimland sort of dangerous confrontation. Asia needs a true multilateralism, not a hostage situation of getting caught in a cross-fire.”

The CPEC itself with its focus on Gwadar, has also given impetus to maritime cooperation between China and Pakistan, and beyond. Both states wish to enhance bilateral cooperation in the fields of maritime security, search and rescue, and the blue water economy. Thus, it would not be wrong to say that CPEC has the potential of accruing strategic cooperation. This approach serves as strategic enabler in a rapidly transforming world order. It is therefore the need of time to move from archaic geopolitical vendetta of 19th and 20th centuries to interstate strategic play in the 21st century.

The pursuit of a state’s national interest in the international arena constitutes its foreign policy. A successful foreign policy should employ a balance of economic, diplomatic, and military tools. It is the national interest that shapes the possibilities of state to behave collectively. Through a balanced foreign policy approach, the South Asian region can achieve its mega development projects and establish into a peaceful integrated region. Confidence-building measures between regional players is the first step in this direction to uplift the socioeconomic standards of the people of this region.

An early version of this text has been published by the China Daily

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Freedom, Sovereign Debt, Generational Accounting and other Myths

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“How to draw the line between the recent and still unsettled EU/EURO crisis and Asia’s success story? Well, it might be easier than it seems: Neither Europe nor Asia has any alternative. The difference is that Europe well knows there is no alternative – and therefore is multilateral. Asia thinks it has an alternative – and therefore is strikingly bilateral, while stubbornly residing enveloped in economic egoisms. No wonder that Europe is/will be able to manage its decline, while Asia is (still) unable to capitalize its successes. Asia clearly does not accept any more the lead of the post-industrial and post-Christian Europe, but is not ready for the post-West world.” – professor Anis H. Bajrektarevic diagnosed in his well-read ‘No Asian century’ policy paper. Sino-Indian rift is not new. It only takes new forms in Asia, which – in absence of a true multilateralism – is entrenched in confrontational competition and amplifying antagonisms.  The following lines are referencing one such a rift.

At the end of 2017, Brahma Chellaney, a professor with the New Delhi-based Center for Policy Research, wrote an article titled “China’s Creditor Imperialism” in which he accused China of creating a “debt trap” from Argentina, to Namibia and Laos, mentioning its acquisition of, or investment in the construction of several port hubs, including Hambantota in Sri Lanka, Piraeus in Greece, Djibouti, and Mombasa in Kenya in recent years.

These countries are forced to avoid default by painfully choosing to let China control their resources and thus have forfeited their sovereignty, he wrote. The article described China as a “new imperial giant” with a velvet glove hiding iron fists with which it was pressing small countries. The Belt and Road Initiative, he concluded, is essentially an ambitious plan to realize “Chinese imperialism”. The article was later widely quoted by newspapers, websites and think tanks around the world.

When then United States Secretary of State Rex Tillerson visited Africa in March, he also said that although Chinese investment may help improve Africa’s infrastructure, it would lead to increased debt on the continent, without creating many jobs.

It is no accident that this idea of China’s creditor imperialism theory originates from India. New Delhi has openly opposed China’s Belt and Road Initiative, especially the China-Pakistan Economic Corridor as it runs through Pakistan-administered Kashmir, which India regards as an integral part of its territory. India is also worried that the construction of China’s Maritime Silk Road will challenge its dominance in South Asia and the Indian Ocean. Based on such a judgment, the Indian government has worked out its own regional cooperation initiatives, and taken moves, such as the declaration of cooperation with Vietnam in oil exploration in the South China Sea and its investment in the renovation of Chabahar port in Iran, as countermeasures against the Chinese initiative.

Since January, India, the United States, Japan and Australia have actively built a “quasi-alliance system” for a “free and open Indo-Pacific order” as an alternative to the Belt and Road Initiative. In April, a senior Indian official attending the fifth China-India Strategic Economic Dialogue reiterated the Indian government’s refusal to participate in the initiative.

The “creditor imperialism” fallacy is in essence a deliberate attempt by India and Western countries to denigrate the Belt and Road Initiative, which exhibits their envy of the initial fruits the initiative has produced. Such an argument stems from their own experiences of colonialism and imperialism. It is exactly the US-led Western countries that attached their political and strategic interests to the debt relationship with debtor countries and forced them to sign unequal treaties. China’s Belt and Road Initiative is proposed and implemented in the context of national equality, globalization and deepening international interdependence, and based on voluntary participation from relevant countries, which is totally different from the mandatory debt relationship of the West’s colonialism.

It is an important “Chinese experience” to use foreign debts to solve its transportation and energy bottlenecks that restrict its economic and social development at the time of its accelerated industrialization and urbanization. By making use of borrowed foreign debts, China once built thousands of large and medium-sized projects, greatly easing the transportation and energy “bottlenecks” that long restrained its social and economic development. Such an experience is of reference significance for other developing countries in their initial stage of industrialization and urbanization along the Belt and Road routes.

In the early stage of China’s reform and opening-up, US dollar-denominated foreign debt accounted for nearly 50 percent of China’s total foreign debts, and Japanese yen close to 30 percent. Why didn’t Western countries think the US and Japan were pushing their “creditor imperialism” on China?

Some foreign media have repeatedly mentioned that Sri Lanka is trapped in a “debt trap” due to its excessive money borrowing from China. But the fact is that there are multiple reasons for Sri Lanka’s heavy foreign debt and its debt predicament should not be attributed to China. For most of the years since 1985, foreign debt has remained above 70 percent of its GDP due to its continuous fiscal deficits caused by low tax revenues and massive welfare spending. As of 2017, Sri Lanka owed China $2.87 billion, accounting for only 10 percent of its total foreign debt, compared with $3.44 billion it owed to Japan, 12 percent of its total foreign debt. Japan has been Sri Lanka’s largest creditor since 2006, but why does no foreign media disseminate the idea of “Japan’s creditor imperialism”?

In response to the accusation that China is pursuing creditor imperialism made by India and some Western countries, even former Sri Lankan president Mahinda Rajapaksa wrote an article in July using data to refute it.

Most of the time, the overseas large-scale infrastructure construction projects related to the Belt and Road Initiative are the ones operated by the Chinese government and Chinese enterprises under the request of the governments of involved countries along the Belt and Road routes or the ones undertaken by Chinese enterprises through bidding.

It is expected that with the construction of large-scale infrastructure projects and industrial parks under the Chinese initiative, which will cause the host country’s self-development and debt repayment ability to constantly increase, the China’s creditor imperialism nonsense will collapse.

An early version of this text appeared in China Daily

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Arrogance of force and hostages in US-China trade war

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Even before the ink on the comments made by those who (just like the author of these lines) saw the recent meeting between US President Donald Trump and his Chinese counterpart Xi Jinping in Buenos Aires as a sign of a temporary truce in the trade war between the two countries had time to dry, something like a hostage-taking and the opening of a second front happened. The recent arrest in Canada under US pressure of Meng Wanzhou, the chief financial officer of China’s telecommunications giant Huawei, is unfolding into a full-blown international scandal with far-reaching consequences.

Meng Wanzhou faces extradition to the United States where she is suspected of violating US sanctions against Iran, namely by making payments to Tehran via the UK branch of the US bank HSBC. The question is, however, how come someone is trying to indict a Chinese citizen according to the norms of American law, and not even on US territory to boot?

China’s reaction was extremely tough with Deputy Foreign Minister Le Yucheng summoning the Canadian and US ambassadors in Beijing and demanding the immediate release of the detainee, calling her detention “an extremely bad act.” First of all, because this is yet another arrogant attempt at extraterritorial use of American laws.

Other countries, above all Russia, have already experienced this arrogance more than once; suffice it to mention the cases of Viktor Bout and Konstantin Yaroshenko, or of the alleged “Russian hackers,” who, by hook or crook, were taken out to the United States to face US “justice”.

Enough is enough, as they say. Russia’s Foreign Minister Sergei Lavrov, who is usually careful in his choice of words, said that while Russia is not involved in the US-China trade war, it still regards Meng’s arrest as “another manifestation of the line that inspires a rejection among the overwhelming majority of normal countries, normal people, the line of extraterritorial application of their [US] national laws.”

“This is a very arrogant great-power policy that no one accepts, it already causes rejection even among the closest allies of the US,” Lavrov said. “It is necessary to put an end to it,” he added.

One couldn’t agree with this more. But first, I would like to know who really is behind this provocation, even though China’s reaction would have been much anticipated. The arrest of Meng Wanzhou sent US markets into a tailspin and scared investors, who now expect an escalation of the trade war between the United States and China.

The point here, of course, is Washington’s displeasure about Huawei’s activities, with The Wall Street Journal reporting that the US Justice Department has long been conducting a probe into the Chinese company’s alleged violation of US sanctions against Iran.

There is more to this whole story than just sanctions though. The US accuses Huawei (as it earlier did the Chinese ZTE) of the potential threats the company’s attempts to use tracking devices could pose to the security of America’s telecommunications networks. The United States has demanded that its closest allies (primarily Canada, the UK, Australia and New Zealand, with whom it has set up a system for jointly collecting and using Five Eyes intelligence) exclude 5G Huawei products from their state procurement tenders.

I still believe, however, that the true reason for this is not so much security concerns as it is a desire to beat a competitor. Huawei has become a world-renowned leader in the development and application of 5G communications technology, which looks to the future (“Internet of Things”, “Smart Cities”, unmanned vehicles and much more.)

Since technology and equipment are supplied along with standards for their use, there is a behind-the-scenes struggle going on to phase out the 5G standard developed by Huawei from global markets.

As for the need “to put an end to this,” the big question is how. Formally, detainees are extradited to the United States in line with national legislation, but at Washington’s request (which often comes with boorish and humiliating pressure from the US authorities and is usually never mentioned in public).

Add to this the US Congress’ longstanding practice of changing, unilaterally and at its own discretion, already signed international treaties and agreements as they are being ratified – another example of “arrogance of power” as mentioned before.

The question could well be raised at the UN Security Council, but its discussion is most likely to be blocked by the US representative. However, there is also a moral side to the assessment of any political practice the work on international legal norms usually starts with.

If China and Russia, as well as other countries equally fed up with the “arrogance of power” submit a draft resolution “On the inadmissibility of attempts at extraterritorial use of national legislation by UN member states” to the UN General Assembly, it would most likely enjoy the overwhelming support by most of the countries of the UNGA, maybe save for just a dozen or so of the most diehard advocates of Washington’s policy…

First published in our partner International Affairs

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