Connect with us

East Asia

The de-dollarization in China

Giancarlo Elia Valori

Published

on

The US dollar is so important in today’s economy for three main reasons: the huge amount of petrodollars; the use of the dollar as the world’s reserve currency and the decision taken by US President Nixon in 1971 to end the dollar convertibility into gold.

The US currency is still a large part of the Special Drawing Rights (SDR), the IMF’s “paper money”.

A share ranging between 41% and 46% depending on the periods.

Petrodollarsemerged when Henry Kissinger dealt with King Fahd of Saudi Arabia, after “Black September” in Jordan.

The agreement was simple. Saudi Arabia had to accept only dollars as payments for the oil it sold, but was forced to invest that huge amount of US currency only in the US financial channels while, in return, the United States placed Saudi Arabia and the other OPEC neighbouring countries under its own military protection.

Hence the turning of the dollar into a world currency, considering the importance and extent of the oil market. Not to mention that this large amount of dollars circulating in the world definitely marginalized gold and later convinced the FED that the demand for dollars in the world washuge and unstoppable.

An unlimited amount of liquidity that kept various US industrial sectors alive but, above all, guaranteed huge financial markets such as the derivatives – markets based on the structural surplus of US liquidity.

After the Soviet Union’s collapse, the United States always thought about world’s hegemony and, above all, imagined to oppose the already active Eurasian union between China, Iran and Russia – the worst nightmare for US decision-makers – both at military and financial levels.

As early as those years, following Brzezinsky’s policy line, the US analysts warned against the unification of Eurasia – to be absolutely prevented – and against the subsequent reunification of Eurasia with the Eurasian peninsula, to be avoided even with a war.

At that time, the three aforementioned Statesstill conducted their business in dollars: China wanted to keep on becoming the “world factory”; Russia had run out of steam and wasnear breaking point; Iran had to inevitably adapt to the rest of Sunni OPEC.

With Putin’s rise to power, Russia’s de-dollarization began immediately.

The share of dollar reserves declinedyear after year, while Putin proposed new oil contracts.

Since last year, for example, dollars cannot be used in ports.

In the case of Iran, the sanction regime – in particular – has favoured the discovery of means other than the dollar for international settlements.

The operations and signs of the de-dollarization continued.

The war in Iraq against Saddam Hussein was also a fight against the Rais who wanted to start selling his oil barrels in euros, while the war in Afghanistan wasviewed by China as part of the ongoing overall encirclement of its territory.

Hence the importance of the Belt and Road Initiative. Also the war in Afghanistan was an attempt to stop the Eurasian project of economic and commercial (as well as political) union between Russia, Iran and China.

As further sanction, the EU required EU designated Iranian banks to be removed from the SWIFT network, which is also a private company.

Iran, however, has immediately joined the Chinese CIPS, a recent network, similar to SWIFT, with which it is already fully connected.

Basically China’s idea is to create an international currency based on the IMF’s Special Drawing Rights and freely expendable on world markets, in lieu of the US dollar, so as to avoid “the dangerous fluctuations stemming from the US  currency and the uncertainties on its real value “- just to quote the Governor of the Chinese central bank, Zhou Xiaochuan, who will soon be replaced by Yi Gang.

In the meantime, Russia and China are acquiring significant amounts of gold.

In recent years China has bought gold to the tune of at least 1842.6 tons, but the international index could be distorted, as many transactions on the Shanghai Gold Exchange are Over the Counter (OTC) and hence are not reported.

Again according to official data, so far Russia is supposed to have reached 1857.7 tons.

Both countries have so far bought 10% of the gold available in the world.

Meanwhile, Saudi Arabia has already accepted payments in yuan for the oil sold to China, which is its largest customer. This is a turning point. If Saudi Arabia gives in, sooner or later all OPEC countries will follow suit.

In many cases, India and Russia have already traded with Iran by accepting oil in exchange for primary goods and commodities.

China has also opened a credit line with Iran amounting to as many as 10 billion euros, with a view to gettingaround sanctions.

It is also assumed that North Korea uses cryptocurrencies to buy oil from China.

As devastated as its economy is, Venezuela no longer sells its oil in dollars – and it is worth recalling it can boast the largest world reserves known to date.

Furthermore, China will buy gas and oil from Russia in yuan, with Russia being able to convert yuan into gold directly on the Shanghai International Energy Exchange.

Keynes’ “tribal residue” takes its revenge.

So far the agreements for trade in their respective currencies were signed between China and Kazakhstan (on December 14, 2014),between China and South Africa (on April 10, 2015) and between Russia and India (on May 26, 2015) while, at the end of November 2015, the Russian central bank included the yuan into the list of currencies that can be accepted as reserves. On November 3, 2016 an agreement was signed between Turkey and Russia for the exchange of their currencies and in October 2017 a similar agreement was reached between Turkey and Iran.

For financial institutions, the de-dollarization continued with the establishment of the BRICS Fund worth 100 billion dollars (on July 16, 2014) and with the establishment – on January 16, 2016 – of the Asian Infrastructure Investment Bank (AIIB), made up of 57 member countries, including Italy, which automatically caused the US anger.

In May 2015 the Russian-Chinese Investment Bank was created, followed in July 2015 by the opening of the new bank for the development of BRICS, based in Shanghai. In November 2015, however, Iran approved the establishment of a bank together with Russia.

It is worth underlining that in April 2015 the Russian national credit card system was opened, dealing also with small currency transfers.

It is also worth recalling the Duma law on de-offshorization of November 18, 2014, i.e. the legislation obliging the Russian companiesresident abroad to pay taxes directly to the Russian Treasury.

The above mentioned Chinese CIPS started operating in October 2015, while in March 2017 Russia implemented a system similar to SWIFT (interacting with the Chinese one).

The issue is complex because with fracking, the United States has become the first oil producer – hence there is less need to keep the huge amount of petrodollars. This happens while a natural oil and gas shale deposit has just been discovered, off the coast of Bahrain, with reserves of 80 billion oil barrels and 4 trillion cubic meters of gas.

The United States does no longer buy oil and gas because it does not need them, but China is increasingly the best global buyer.

Apart from the stability of gas and oil prices, which should be guaranteed in the coming years, China and its allies should be ever more able to select between the supply and, certainly, between the countries which accept the non-oil bilateral exchange with China and payments in yuan or gold.

Still today, the US GDP accounts for 22% of world’s GDP, while 80% of international payments are made in dollars.

Hence the United States receives goods from abroad always at comparatively very low prices, while the massive demand for dollars from the rest of the world allows to refinance the US public debt at very low costs.

This is the economic and political core of the issue.

In fact, the Russian government held a specific meeting on de-dollarization in spring 2014.

This is another fact to be highlighted. It is a political operation that appears to be a financial one, often in contrast with the “volatility” of current markets, but its core is strategic and geopolitical.

In theory, the de-dollarization regards three specific issues: payments, the real economy issue and ultimately the financial issue, namely the financial contracts denominated in dollars.

In the first case, China will tend to eliminate every transaction denominated in US dollars by third countries and to removesettlement mechanisms involving the dollar and operating in its neighbouring areas.

In the second case, the dollar transactions will be – and are already – largely prohibited for individuals.

In the third case, the share of foreign contracts denominated in yuan is now equal to 40% and strong acceleration will be recorded in 2018.

The oil futures denominated in yuan are now booming. The first attempt was made in 1993, when China opened its stock exchanges in Beijing and Shanghai.

China itself closed operations two years later, due to market instability and to the yuan weakness.

Two other things have changed since then: in 2016 the yuan was admitted as a currency making up the IMF Special Drawing Rights and in 2017 China overtook the United States as the world’s largest oil importer.

Hence, thanks to the oil futures denominated in yuan, China is reducing its dependence on the dollar and, in the meantime, it is supporting its oil imports, as well as promoting the use of the yuan globally and expanding its presence in the world.

Russia has done the same.

Therefore the United States is about to be ousted as world’s currency due to its continuous series of wars and military failures (former President Cossiga always told me: “The United States is always on the warpath and up in arms, but then it is not able to get out of it”) and, like everyone else, it shall pay for its public debt, which is huge and will be ever more its problem, not ours.

Here it is worth recalling what the US Treasury Secretary,John Connally, said to his European counterparts during a meeting in 1971: “The dollar is our currency, but your problem”.

Obviously, in relation to all these issues which also concern primarily the euro, the European Union is silent and sleepy.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

Continue Reading
Comments

East Asia

The SCO needs strategic consensus and cooperation in an era of uncertainties

Wang Li

Published

on

By

During his latest state visit to Russia, Chinese President Xi Jinping and his Russian counterpart Putin agreed to bring the two countries’ relationship to a “new era of greater development at a higher level”. Given this, the two core member states and the driving force of the Shanghai Cooperation Organization (SCO), China and Russia, will be expected to facilitate a broader prospect for the cooperation among the SCO member states in accordance with the “Shanghai spirit” during the 19th meeting of the Council of Heads of State of the SCO that was scheduled on June 4in Bishkek.

Founded in 2001, the original six-states of the SCO—China, Russia, Kazakhstan, Kyrgyz, Tajikistan and Uzbekistan—signed “The Shanghai Cooperation Organization Charter”. It puts the priorities on mutual trust and neighborliness among the member states; and joint efforts to ensure peace, security and stability in the region; and to build up a democratic, fair and rational international order. Since then, these are enshrined into the “Shanghai Spirit” that upholds internally mutual trust, reciprocal consultations, respect for cultural diversity and common development and externally non-alignment, non-targeting any third party, and inclusiveness. From the very beginning, it has been an important mission for the organization to fight against the “three evils”, which refer to terrorism, separatism, and extremism. The concept was first defined in June 2001 during the first SCO summit. Since then, taking regional security and stability as a priority, the SCO has been making unremitting efforts to crack down on the “three evils” in joint efforts to advance the cooperation and development.

True, the SCO has undergone a substantial development since its inception and now becomes a comprehensive regional organization with the profound dimensions beyond the region. Looking into the geographical locations of the eight SCO member states, it is surely the largest regional security organization in the world, accounting for nearly half of the world’s population and over 1/5 of global GDP, not to mention two permanent members of UN Security Council—China and Russia; and two most populous nations on the Earth—China and India. During the previous 17 years, the SCO has developed into a vigorous platform with upholding the Shanghai Spirit based on the inclusiveness and common development. According to the current SCO Secretary-General Vladimir Norov, the SCO will continue close cooperation with the aim of implementing the UN Global Counter-Terrorism Strategy including joint activities and recommendations of the relevant UN Security Council resolutions. For sure, with its all full members alongside four observer states and six dialogue partners, the SCO has acted actively as an international cooperation organization. Considering the uncertain circumstances of the world, the 19thSCO summit will focus on security and development among other cooperative tasks.

Here, security involves a much broader spectrum. In effect, the SCO has highlighted joint efforts to ensure peace, security and stability in the region. During the latest summit between Xi and Putin, they assured that the comprehensive strategic partnership of coordination of the two countries has not only benefited the two peoples, but has also become an important force for safeguarding global security and strategic stability. To that end, China and Russia would continue to strengthen coordination on major international and regional issues, jointly deal with the challenges of unilateralism and protectionism, and maintain global peace and stability. As Putin put it, since Russia is ready to provide China with sufficient oil and gas, including more soybeans and other farm produce exported to China, the two sides expect a faster alignment between the Eurasian Economic Union and the Belt and Road Initiative. This requires security cooperation involving all member states of the SCO.

If we take a close look into the Qingdao summit of the SCO which was held in 2018, it highlighted the security cooperation in the fields such as cross-border organized crime, gun smuggling, drug trafficking and internet security as they have become the new security challenges for the region and beyond. , now all the SCO member states agree to expand the fields of security cooperation to drug trafficking and organized crime. To that end, China and Russia have closely worked alongside all other members with a view to building an efficient intelligence-sharing system among SCO member states. Now as a highly integrated security organization, the SCO needs to collectively deal with the common challenges according to their shared responsibilities.

In an era of globalization, which is full of challenges and opportunities as well, all member states of the SCO are aware that while security acts the condition for development, the latter is the insurance of long-term stability. Due to this, one of the Shanghai Spirit’s original goals is to seek common development. Since 2013, Xi has urged the Belt and Road Initiative (BRI) taken deep roots and substantially benefit the SCO member states and beyond. As the BRI is the basic path to realizing common wealth, the SCO has not only continued to sublimate the Shanghai Spirit, but also to serve the interests of all the member states and the whole region as well.

During the meeting at the presidential residence in Bishkek, capital of Kyrgyzstan, right after Xi Jinping and his entourage arrived on June 13, Chinese President Xi and his Kyrgyz counterpart, Sooronbay Jeenbekov discussed joint efforts to promote bilateral ties. Xi also stated that China is ready to share experience in state governance with Kyrgyzstan to achieve common development and prosperity, hailing the solid outcomes in the joint construction of the Belt and Road. The two sides agreed to step up coordination within multilateral frameworks, including the SCO and the Conference on Interaction and Confidence Building Measures in Asia, stick to multilateralism, and oppose protectionism and unilateralism, so as to contribute to building a community with a shared future for humanity.

Now the SCO Summit takes place in Kyrgyz located in central Asia and aims to synchronize its position towards Eurasian unity. The SCO serves a platform for jointly upholding multilateralism and the free trade system and opposing unilateralism and bullying tactics. To that end, the SCO and BRI would like to be integrated with the pace of the security and development in which a new vision of common, comprehensive, cooperative and sustainable path would suit Asia and boost the common interests of all. For China, Xi is obviously looking forward to receiving the firm and frank supports from the SCO to take further measures by Beijing in safeguarding peace and stability and cracking down three evils in China’s borders areas, such as Xinjiang Uygur Autonomous Region and Tibet.

Continue Reading

East Asia

Civilisationalism: Ignoring early warning signs at one’s peril

Dr. James M. Dorsey

Published

on

A controversy about a University of British Columbia invitation to a Chinese advocate of forced re-education and assimilation of ethnic minorities highlights the risks involved in ignoring early stage civilisationalism, the emerging system of principles of governance underwriting a new world order that defines states in civilizational rather than national terms and legitimizes violations of human rights.

While the invitation sparked opposition that raised freedom of speech issues, it also spotlighted the consequences of US, European and Muslim failure to recognize initial indications that China was moving away from its long-standing policy of promoting inter-communal harmony by preserving minority cultures and ensuring that they benefitted from economic growth.

The erosion of China’s long-standing policy has consequences far beyond the boundaries of Tibet and China’s troubled north-western province of Xinjiang that is home to its Turkic Muslim population. It legitimizes repression of minority rights across the globe raising the spectre of inter-communal strife in societies that have long sought to foster variations of multi-culturalism and social harmony.

Calls for a rethink of China’s ethnic policy emerged in 2012 after two men set themselves on fire  outside Tibetan Buddhism’s holiest temple in the center of Lhasa, the Tibetan capital. The International Campaign for Tibet, an advocacy group, last year published the names of 155 Tibetans who have self-immolated since 2009.

Back in 2012, military officials, businessmen, intellectuals, netizens, and dissidents asserted that the self-immolations attested to a failure of policy in what was a public debate of a long secretive and sensitive topic.

The debate was fuelled by concerns that China’s official recognition of 56 different nationalities resident within its borders risked it becoming another example of the post-Communist break-up of states such as the Soviet Union, Czechoslovakia and Yugoslavia.

It was also informed by a series of incidents in Xinjiang and other parts of China, including inter-communal violence in 2004 between Han Chinese and Hui Muslims, widely viewed as China’s most integrated Muslim community, that left some 150 people dead.

It was in that environment that Hu Angang, an economist and founding director of Tsinghua University’s Center for China Studies, one of China’s most influential think tanks, urged the government to adopt an imposed melting pot approach that would create a “collective civic culture and identity.” It was an invitation extended to Mr. Angang that sparked controversy at the University of British Colombia.

Mr. Hu’s policy recommendations, articulated in a widely published article co-authored in 2011 by fellow researcher Hu Lianhe, a pioneer of terrorism studies in China who has since become a senior official of the Chinese communist party’s United Front Work department in Xinjiang, appear to have provided a template or at least a framework for China’s brutal crackdown on Turkic Muslims.

Xinjiang serves as a prime example of the risks of failing to respond to civilisationalism’s early warning signs.

Up to one million people are believed to have been detained in re-education camps dubbed “’vocational education’ and employment training centres” by the government where inmates are taught Mandarin, allegedly forced to violate Muslim dietary and religious practices, and browbeaten with the notion that Xi Jinping thought, the precepts of China’s president, supersede Islamic teaching.

Messrs. Hu warned that regional ethnic elites and interests enabled by China’s acceptance of what amounted to minority rights could lead to separatism on the country’s strategic frontiers. They suggested that the central committee of the Communist party had recognized this by pushing in 2010 for “ethnic contact, exchange and blending.”

To achieve that, the two men advocated removing ethnicity from all official documents; demographic policies that would water down geographic concentration of ethnic minorities and ensure a ‘proper’ population mix; emphasis on the use of Mandarin as the national language; promotion of China as the prime identity of minorities; and taking steps to counter religious extremism.

James Leibold, a China scholar, who raised alarm bells early on and focused attention on Messrs. Hu’s analysis and the Chinese debate, lamented at the time that “few in the West…seem to be listening.”

Mr. Leibold echoed his warning six years later when Mr. Lianhe last August stepped for the first time onto the international stage to defend the Chinese crackdown at a meeting of the United Nations Committee on the Elimination of Racial Discrimination (CERD).

“The emergence of Hu Lianhe portends a significant shift in both the institutional and policy direction emanating out of Beijing, and suggests that what is happening in Xinjiang is the leading edge of a new, more coercive ethnic policy under Xi Jinping’s ‘New Era’ of Chinese power, one that seeks to accelerate the political and cultural transformation of non-Han ethnic minorities,” Mr. Leibold said.

Describing Mr. Lianhe as an influential party official and intellectual, Mr. Leibold suggested China was acting in Xinjiang and Tibet on the official’s assertion in 2010 that “stability is about liberating man, standardizing man, developing man and establishing the desired working social order.” Mr. Lianhe advocated adopting his approach across the country.

In Xinjiang, standardization translates into government announcements that local officials are visiting Uyghur homes during this year’s fasting month of Ramadan to ensure that they are not observing the religious commandment.

“We must take effective action to end the gossiping about high level Party organs; finding fault, feigning compliance, and praising in public while singing a different tune in private or when alcohol is on the table”, Mr. Leibold quoted a confidential memo written by local officials in Xinjiang as saying.

In hard-line remarks to this weekend’s Shangri-La Asian Security Dialogue in Singapore, Chinese defense minister Wei Fenghe, wearing a military uniform with a chest full of ribbons, asserted that “the policy in Xinjiang is absolutely right because over the past two years there is no single terrorist attack in Xinjiang.

The living standards of the local people have improved. The number of tourists to Xinjiang is over 150 million people…. The average GDP of people in Xinjiang is 7,500 US dollars… Xinjiang has carried out vocational education and training centres to ensure that there are no terrorist attacks, to help these people deradicalize and help these people have some skills. Then they can better reintegrate into society. Isn’t that a good thing?” General Wei asked.

It is good thing on the assumption that economic progress can ultimately and sustainably trump cultural and/or ethnic aspirations and that it justifies a policy that critics have dubbed cultural genocide by in the words of Mr. Leibold abolishing “non-Han cultural, linguistic and religious practices” and eroding social trust.

The policy’s success depends on the sustainable Uyghur internalization through re-education and repression of religious and cultural practices as a survival strategy or out of fear.

General Wei’s defense of the policy notwithstanding, renowned China scholar Yitzhak Shichor concluded in a recent study that the defense minister’s People’s Liberation Army (PLA) has so far refrained from involvement in maintaining internal security in Xinjiang, making it the responsibility of para-military forces.

“That could change if the civilian police force and PAP fail in their mission,” Mr. Shichor quoted former US army and military intelligence China expert Dennis J. Blasko as saying. Mr. Blasko was referring to the People’s Armed Police by its acronym PAP.

General Wei and Mr. Hu’s Xinjiang’s statements are but the most extreme example of civilizationalist politics that have globally given rise to Islamophobia; Hindu nationalism; rising anti-Semitism; jihadist massacres of minorities including Christians and Yazidis, lax attitudes towards white supremacism and efforts by some leaders to recreate ethnically and/or religiously homogeneous societies.

Civilisationalists’ deemphasizing of human, women’s and minority rights means reduced likelihood that incidents of radicalization and ethnic and religious conflict can be pre-empted. The risk of conflict and societal strife are enhanced by increased obsession with migration that erases escaping to safer harbours as an option.

Continue Reading

East Asia

Security in the Korean Peninsula remains fragile

Published

on

North Korea’s nuclear program was initially conceived useful to provide necessary wiggle room to Pyongyang to attain the objectives of normalizing relations with the US ensuring its security as well as lessening its overdependence on China. However, the country later pursued a hard-line approach in the face of heightened US sanctions. In this context, the first summit meeting between the heads of North Korea and the US in Singapore on June 12, 2018 was conceived to break new grounds in ushering in peace in the Korean Peninsula by ending long-years of isolation of North Korea from US and its allies and heralding the process of denuclearization in the peninsula.

However, many relevant questions needed answers as the process of dialogue ensued. For instance, the North Korean regime sought answers whether the denuclearization process would involve the simultaneous process of wrapping up of American extension of nuclear deterrence and missile defence system to South Korea? Second, whether the withdrawal of US troops from the Korean Peninsula was to be discussed? Third, the question that bothered the US leaders and officials alike was whether North Korea would be sincere to the denuclearization process and objectives? Based on its perception of the other party to the negotiation, US chose to insist on the unilateral abandonment of North Korean nuclear program and refused to waive sanctions until North Korea denuclearized completely. The negotiation process has been conceived as a zero sum game by Washington whereas Pyongyang is expecting returns for each move it takes. This has brought the process of negotiations to a stalemate and mutual distrust has reached its peak.

The American approach seems to be guided by the conviction that a deep-sense of insecurity, aggressive nationalism, and consolidation of power by the leader Kim-Jong-un drives North Korea’s nuclear ambitions. While many experts argued that the nuclear program was intended to serve as a deterrent against foreign military intervention to the internationally isolated North Korean regime, the regime must have been emboldened to pursue a hard-line approach toward developing nuclear arsenal by learning from the instances how relinquishing Libya’s nuclear program would have made it easier for the US-supported uprising to topple and assassinate Muammar Gaddafi. On the other side, many skeptics who suspect that North Korea would not disarm argue that the country has been relentlessly pursuing nuclear program for coercive purposes rather than for deterrence with an objective to drive a wedge between the US and South Korea and forge a unified Korea. The obfuscated perceptions that each carried about the other stifled the negotiation process.

John R. Bolton, the White House national security adviser condemned recent North Korean short-range ballistic missiles tests and said how the tests clearly violated United Nations Security Council resolutions and President Trump expressed his unhappiness with the tests initially but then played down their importance. On the other side, North Korea has not only blamed the US for its continuing sanctions campaign as well as the seizure of one of the country’s biggest cargo ships, it has not cringed from accusing the latter of showing bad faith in negotiations by conducting nuclear and missile tests and military drills as a way to forcefully subjugate North Korea while it advocated dialogue at the same time. It has been alleged that the US had conducted a subcritical nuclear test on February 13, just days before the second summit meeting. North Korea points to how high-ranking US officials did not budge from insulting the dignity of its supreme leadership and calling North Korea a “rogue regime”. Meanwhile, the South Korean Chosun Ilbo newspaper reported that Kim Hyok-chol and foreign ministry officials who conducted working-level preparations for the summit meeting in Hanoi in February were executed a month later.

While the US accused the North Korean regime from backing away from its promises and questioned the regime’s sincerity in following up the first summit’s denuclearization targets, North Korea considered that the summit in Singapore is the first move towards peace in the Korean peninsula to be followed by more such dialogues. The Korean regime alleged the US was expecting too much from a single summit without reciprocating to Pyongyang’s initial efforts at destroying the tunnels at the Punggye-ri nuclear test site (the only nuclear site), freezing of nuclear and missile tests and returning of American prisoners. North Korea argues for a peace treaty to formally end the Korean War (1950) and security guarantees from the US that would prevent America from attacking North Korea in future. While Russia and China wish to see a denuclearized North Korea for regional peace and trade but they view the American stringent measures as attempts to dwarf the influence of potential threats and spread its own. While Russia and China would seek to prevent North Korea from succumbing to US-led sanctions, Iran was skeptical and critical of the American move from the beginning and warned North Korea against trusting the American President who could cancel the agreement within hours. Mounting American pressures on North Korea without considering efforts at reaching out to the long-isolated country with deeper engagements would only build mutual distrust and would force Pyongyang to look out for assistance from countries which share similar concerns on American hegemony. While it is evident that the US policy of putting North Korea under sanctions until it denuclearizes itself is aimed at forestalling brewing tensions in the Korean Peninsula with rising threats from the regime’s muscular ambitions of developing nuclear and missile programs, the unilateral thrust in the policy is unlikely to yield results unless US considers negotiating peace a steady as well as a reciprocal process.

Continue Reading

Latest

Reports2 hours ago

New Zealand can improve well-being through better policymaking and reforms

New Zealand’s economy has stabilised, with solid growth supporting well-being through jobs and incomes. Ongoing implementation of the government’s new...

Americas4 hours ago

From Popular Representation to International Isolationism: AMLO’s First Seven Months in Power

It will soon be a year since the July 2018  Mexican presidential elections that saw Andrés Manuel López Obrador (AMLO)...

Hotels & Resorts6 hours ago

A Splendid Summer in Atlantis, The Palm

It’s no secret that June in Dubai means temperatures are a little higher than usual. But that doesn’t mean you...

Energy News8 hours ago

Mini Grids Have Potential to Bring Electricity to Half a Billion People

Mini grids, previously viewed as a niche solution, can provide electricity to as many as 500 million people by 2030,...

Intelligence10 hours ago

Additional considerations on the Huawei 5G issue

In principle, excluding Huawei’s 5G from the US networks certainly does not make them safer.  The logic for the operation...

Newsdesk14 hours ago

ADB to Improve Skills, Competitiveness of Cambodia’s Labor Force

The Asian Development Bank (ADB) has approved a $60 million loan to boost the skills and competitiveness of Cambodia’s growing...

Newsdesk19 hours ago

‘Summer Davos’ To Focus on Preparing Leaders for New Era of Globalization

More than 1,800 leaders from government, business, civil society, academia and the arts come together in Dalian next week for...

Trending

Copyright © 2019 Modern Diplomacy