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.
Following the famous saying allegedly spelled by Kissinger: “Europe? Give me a name and a phone number!” (when – back in early 1970s – urged by President Nixon to inform Europeans on the particular US policy action), the author is trying to examine how close is Asia to have its own telephone number.
Another fallacy is that the German reunification can be just copied. 15 days at any German institute of political science and one becomes expert of reunification. Yes, Germany is a success story since the neighbors were extremely forgiving. And that was enhanced by the overall pan-continental commitment to multilateralism – by both institutions and instruments. Europe of German re-unification was the most multilateralised region of the world. Asia today is extremely bilateral – not far from the constellations at the time of Hiroshima or Korean War of 1950s. No multilateralism – no denuclearisation; no denuclearisation – no reunification; no reunification – no overall cross-continental tranquilization of relations; no tranquility – no Asia’s sustainable success.
Why multilateralism matters? Author tries to answer it …
By contrasting and comparing genesis of multilateral security structures in Europe with those currently existing in Asia, and by listing some of the most pressing security challenges in Asia, this policy paper offers several policy incentives why the largest world’s continent must consider creation of the comprehensive pan-Asian institution. Prevailing security structures in Asia are bilateral and mostly asymmetric while Europe enjoys multilateral, balanced and symmetric setups (American and African continents too). Author goes as far as to claim that irrespective to the impressive economic growth, no Asian century will emerge without creation of such an institution.
For over a decade, many of the relevant academic journals are full of articles prophesizing the 21st as the Asian century. The argument is usually based on the impressive economic growth, increased production and trade volumes as well as the booming foreign currency reserves and exports of many populous Asian nations, with nearly 1/3 of total world population inhabiting just two countries of the largest world’s continent. However, history serves as a powerful reminder by warning us that economically or/and demographically mighty gravity centers tend to expand into their peripheries, especially when the periphery is weaker by either category. It means that any absolute or relative shift in economic and demographic strength of one subject of international relations will inevitably put additional stress on the existing power equilibriums and constellations that support this balance in the particular theater of implicit or explicit structure.
Lessons of the Past
Thus, what is the state of art of Asia’s security structures? What is the existing capacity of preventive diplomacy and what instruments are at disposal when it comes to early warning/ prevention, fact-finding, exchange mechanisms, reconciliation, capacity and confidence– building measures in the Asian theater?
While all other major theaters do have the pan-continental settings in place already for many decades, such as the Organization of American States – OAS (American continent), African Union – AU (Africa), Council of Europe and Organization for Security and Cooperation in Europe – OSCE (Europe), the state-of-arts of the largest world’s continent is rather different. What becomes apparent, nearly at the first glance, is the absence of any pan-Asian security/ multilateral structure. Prevailing security structures are bilateral and mostly asymmetric. They range from the clearly defined and enduring non-aggression security treaties, through less formal arrangements, up to the Ad hoc cooperation accords on specific issues. The presence of the multilateral regional settings is limited to a very few spots in the largest continent, and even then, they are rarely mandated with security issues in their declared scope of work. Another striking feature is that most of the existing bilateral structures have an Asian state on one side, and either peripheral or external protégé country on the other side which makes them nearly per definition asymmetric. The examples are numerous: the US–Japan, the US– S. Korea, the US–Singapore, Russia–India, Australia–East Timor, Russia–North Korea, Japan –Malaysia, China–Pakistan, the US–Pakistan, China–Cambodia, the US–Saudi Arabia, Russia –Iran, China–Burma, India–Maldives, Iran–Syria, N. Korea–Pakistan, etc.
Indeed, Asia today resonates a mixed echo of the European past. It combines features of the pre-Napoleonic, post-Napoleonic and the League-of-Nations Europe. What are the useful lessons from the European past? Well, there are a few, for sure. Bismarck accommodated the exponential economic, demographic and military growth as well as the territorial expansion of Prussia by skillfully architecturing and calibrating the complex networks of bilateral security arrangements of 19th century Europe. Like Asia today, it was not an institutionalized security structure of Europe, but a talented leadership exercising restraint and wisdom in combination with the quick assertiveness and fast military absorptions, concluded by the lasting endurance. However, as soon as the new Kaiser removed the Iron Chancellor (Bismarck), the provincial and backward–minded, insecure and militant Prussian establishment contested (by their own interpretations of the German’s machtpolitik and weltpolitik policies) Europe and the world in two devastating world wars. That, as well as Hitler’s establishment afterwards, simply did not know what to do with a powerful Germany.
The aspirations and constellations of some of Asia’s powers today remind us also of the pre-Napoleonic Europe, in which a unified, universalistic block of the Holy Roman Empire was contested by the impatient challengers of the status quo. Such serious centripetal and centrifugal oscillations of Europe were not without grave deviations: as much as Cardinal Richelieu’s and Jacobin’s France successfully emancipated itself, the Napoleon III and pre-WWII France encircled, isolated itself, implicitly laying the foundation for the German attack.
Finally, the existing Asian regional settings also resemble the picture of the post-Napoleonic Europe: first and foremost, of Europe between the Vienna Congress of 1815 and the revolutionary year of 1848. At any rate, let us take a quick look at the most relevant regional settings in Asia.
By far, the largest Asian participation is with the Asia-Pacific Economic Cooperation – APEC, an organization engulfing both sides of the Pacific Rim. Nevertheless, this is a forum for member economies not of sovereign nations, a sort of a prep-com or waiting room for the World Trade Organization – WTO. To use the words of one senior Singapore diplomat who recently told me in Geneva the following: “what is your option here? …to sign the Free Trade Agreement (FTA), side up with the US, login to FaceBook, and keep shopping on the internet happily ever after…”
Two other crosscutting settings, the Organization of Islamic Cooperation – OIC and Non-Aligned Movement – NAM, the first with and the second without a permanent secretariat, represent the well-established political multilateral bodies. However, they are inadequate forums as neither of the two is strictly mandated with security issues. Although both trans-continental entities do have large memberships being the 2nd and 3rd largest multilateral systems, right after the UN, neither covers the entire Asian political landscape – having important Asian countries outside the system or opposing it.
Further on, one should mention the Korean Peninsula Energy Development Organization – KEDO (Nuclear) and the Iran-related Contact (Quartet/P-5+1) Group. In both cases, the issues dealt with are indeed security related, but they are more an asymmetric approach to deter and contain a single country by the larger front of peripheral states that are opposing a particular security policy, in this case, of North Korea and of Iran. Same was with the short-lived SEATO Pact – a defense treaty organization for SEA which was essentially dissolved as soon as the imminent threat from communism was slowed down and successfully contained within the French Indochina.
Confidence building – an attempt
If some of the settings are reminiscent of the pre-Napoleonic Europe, the Shanghai Cooperation Organization – SCO and Cooperation Council for the Arab states of the Gulf – GCC remind us of the post-Napoleonic Europe and its Alliance of the Eastern Conservative courts (of Metternich). Both arrangements were created on a pretext of a common external ideological and geopolitical threat, on a shared status quo security consideration. Asymmetric GCC was an externally induced setting by which an American key Middle East ally Saudi Arabia gathered the grouping of the Arabian Peninsula monarchies. It has served a dual purpose; originally, to contain the leftist Nasseristic pan-Arabism which was introducing a republican type of egalitarian government in the Middle Eastern theater. It was also – after the 1979 revolution – an instrument to counter-balance the Iranian influence in the Gulf and wider Middle East. The response to the spring 2011-13 turmoil in the Middle East, including the deployment of the Saudi troops in Bahrain, and including the analysis of the role of influential Qatar-based and GCC-backed Al Jazeera TV network is the best proof of the very nature of the GCC mandate.
The SCO is internally induced and more symmetric setting. Essentially, it came into existence through a strategic Sino-Russian rapprochement , based, for the first time in modern history, on parity, to deter external aspirants (the US, Japan, Korea, India, Turkey and Saudi Arabia) and to keep the resources, territory, present socio-economic cultural and political regime in the Central Asia, Tibet heights and the Xinjiang Uighur province in line.
The next to consider is the Indian sub-continent’s grouping, the South Asian Association for Regional Cooperation – SAARC. This organization has a well-established mandate, well staffed and versed Secretariat. However, the Organization is strikingly reminiscent of the League of Nations. The League is remembered as an altruistic setup which repeatedly failed to adequately respond to the security quests of its members as well as to the challenges and pressures of parties that were kept out of the system (e.g. Russia until well into the 1930s and the US remaining completely outside the system, and in the case of the SAARC surrounding; China, Saudi Arabia and the US). The SAARC is practically a hostage of mega confrontation of its two largest members, both confirmed nuclear powers; India and Pakistan. These two challenge each other geopolitically and ideologically. Existence of one is a negation of the existence of the other; the religiously determined nationhood of Pakistan is a negation of multiethnic India and vice verse. Additionally, the SAARC although internally induced is an asymmetric organization. It is not only the size of India, but also its position: centrality of that country makes SAARC practically impossible to operate in any field without the direct consent of India, be it commerce, communication, politics or security.
For a serious advancement of multilateralism, mutual trust, a will to compromise and achieve a common denominator through active co-existence is the key. It is hard to build a common course of action around the disproportionately big and centrally positioned member which would escape the interpretation as containment by the big or assertiveness of its center by the smaller, peripheral members.
Multivector Foreign Policy
Finally, there is an ASEAN – a grouping of 10 Southeast Asian nations , exercising the balanced multi-vector policy, based on the non-interference principle, internally and externally. This, Jakarta/Indonesia headquartered organization has a dynamic past and an ambitious current charter. It is an internally induced and relatively symmetric arrangement with the strongest members placed around its geographic center, like in case of the EU equilibrium with Germany-France/Britain-Italy/Poland-Spain geographically balancing each other. Situated on the geographic axis of the southern flank of the Asian landmass, the so-called growth triangle of Thailand-Malaysia-Indonesia represents the core of the ASEAN not only in economic and communication terms but also by its political leverage. The EU-like ASEAN Community Road Map (for 2015) will absorb most of the Organization’s energy . However, the ASEAN has managed to open its forums for the 3+3 group/s, and could be seen in the long run as a cumulus setting towards the wider pan-Asian forum in future.
Before closing this brief overview, let us mention two recently inaugurated informal forums, both based on the external calls for a burden sharing. One, with a jingoistic-coined name by the Wall Street bankers – BRI(I)C/S, so far includes two important Asian economic, demographic and political powerhouses (India and China), and one peripheral (Russia). Indonesia, Turkey, Saudi Arabia, Pakistan, Kazakhstan, Iran are a few additional Asian countries whose national pride and pragmatic interests are advocating a BRIC membership. The G–20, the other informal forum, is also assembled on the Ad hoc (pro bono) basis following the need of the G–7 to achieve a larger approval and support for its monetary (currency exchange accord) and financial (austerity) actions introduced in the aftermath of still unsettled financial crisis. Nevertheless, the BRIC and G-20 have not provided the Asian participating states either with the more leverage in the Bretton Woods institutions besides a burden sharing, or have they helped to tackle the indigenous Asian security problems. Appealing for the national pride, however, both informal gatherings may divert the necessary resources and attention to Asian states from their pressing domestic, pan-continental issues.
Yet, besides the UN system machinery of the Geneva-based Disarmament committee, the UN Security Council, the Organization for the Prohibition of Chemical Weapons – OPCW and International Atomic Energy Agency – IAEA (or CTBTO), even the ASEAN Asians (as the most multilateralized Asians) have no suitable standing forum to tackle and solve their security issues. An organization similar to the Council of Europe or the OSCE is still far from emerging on Asian soil.
Our history warns. Nevertheless, it also provides a hope: The pre-CSCE (pre-Helsinki) Europe was indeed a dangerous place to live in. The sharp geopolitical and ideological default line was passing through the very heart of Europe, cutting it into halves. The southern Europe was practically sealed off by notorious dictatorships; in Greece (Colonel Junta), Spain (Franco) and Portugal (Salazar), with Turkey witnessing several of its governments toppled by the secular and omnipotent military establishment, with inverted Albania and a (non-Europe minded) non-allied, Tito’s Yugoslavia. Two powerful instruments of the US military presence (NATO) and of the Soviets (Warsaw pact) in Europe were keeping huge standing armies, enormous stockpiles of conventional as well as the ABC weaponry and delivery systems, practically next to each other. By far and large, European borders were not mutually recognized. Essentially, the west rejected to even recognize many of the Eastern European, Soviet dominated/installed governments.
Territorial disputes unresolved
Currently in Asia, there is hardly a single state which has no territorial dispute within its neighborhood. From the Middle East, Caspian and Central Asia, Indian sub-continent, mainland Indochina or Archipelago SEA, Tibet, South China Sea and the Far East, many countries are suffering numerous green and blue border disputes. The South China Sea solely counts for over a dozen territorial disputes – in which mostly China presses peripheries to break free from the long-lasting encirclement. These moves are often interpreted by the neighbors as dangerous assertiveness. On the top of that Sea resides a huge economy and insular territory in a legal limbo – Taiwan, which waits for a time when the pan-Asian and intl. agreement on how many Chinas Asia should have, gains a wide and lasting consensus.
Unsolved territorial issues, sporadic irredentism, conventional armament, nuclear ambitions, conflicts over exploitation of and access to the marine biota, other natural resources including fresh water access and supply are posing enormous stress on external security, safety and stability in Asia. Additional stress comes from the newly emerging environmental concerns, that are representing nearly absolute security threats, not only to the tiny Pacific nation of Tuvalu , but also to the Maldives, Bangladesh, Cambodia, parts of Thailand, of Indonesia, of Kazakhstan and of the Philippines, etc . All this combined with uneven economic and demographic dynamics of the continent are portraying Asia as a real powder keg.
It is absolutely inappropriate to compare the size of Asia and Europe – the latter being rather an extension of a huge Asian continental landmass, a sort of western Asian peninsula – but the interstate maneuvering space is comparable. Yet, the space between the major powers of post-Napoleonic Europe was as equally narrow for any maneuver as is the space today for any security maneuver of Japan, China, India, Pakistan, Iran and the like.
Let us also take a brief look at the peculiarities of the nuclear constellations in Asia. Following the historic analogies; it echoes the age of the American nuclear monopoly and the years of Russia’s desperation to achieve the parity.
Besides holding huge stockpiles of conventional weaponry and numerous standing armies, Asia is a home of four (plus peripheral Russia and Israel) of the nine known nuclear powers (declared and undeclared). Only China and Russia are parties to the Non-proliferation Treaty – NPT. North Korea walked away in 2003, whereas India and Pakistan both confirmed nuclear powers declined to sign the Treaty. Asia is also the only continent on which nuclear weaponry has been deployed.
Cold War exiled in Asia
As is well known, the peak of the Cold War was marked by the mega geopolitical and ideological confrontation of the two nuclear superpowers whose stockpiles by far outnumbered the stockpiles of all the other nuclear powers combined. However enigmatic, mysterious and incalculable to each other , the Americans and Soviets were on opposite sides of the globe, had no territorial disputes, and no record of direct armed conflicts.
Insofar, the Asian nuclear constellation is additionally specific as each of the holders has a history of hostilities – armed frictions and confrontations over unsolved territorial disputes along the shared borders, all combined with the intensive and lasting ideological rivalries. The Soviet Union had bitter transborder armed frictions with China over the demarcation of its long land border. China has fought a war with India and has acquired a significant territorial gain. India has fought four mutually extortive wars with Pakistan over Kashmir and other disputed bordering regions. Finally, the Korean peninsula has witnessed the direct military confrontations of Japan, USSR, Chinese as well as the US on its very soil, and remains a split nation under a sharp ideological divide.
On the western edge of the Eurasian continent, neither France, Britain, Russia nor the US had a (recent) history of direct armed conflicts. They do not even share land borders.
Finally, only India and now post-Soviet Russia have a strict and full civilian control over its military and the nuclear deployment authorization. In the case of North Korea and China, it is in the hands of an unpredictable and non-transparent communist leadership – meaning, it resides outside democratic, governmental decision-making. In Pakistan, it is completely in the hands of a politically omnipresent military establishment. Pakistan has lived under a direct military rule for over half of its existence as an independent state.
What eventually kept the US and the USSR from deploying nuclear weapons was the dangerous and costly struggle called: “mutual destruction assurance”. Already by the late 1950s, both sides achieved parity in the number and type of nuclear warheads as well as in the number and precision of their delivery systems. Both sides produced enough warheads, delivery systems’ secret depots and launching sites to amply survive the first impact and to maintain a strong second-strike capability . Once comprehending that neither the preventive nor preemptive nuclear strike would bring a decisive victory but would actually trigger the final global nuclear holocaust and ensure total mutual destruction, the Americans and the Soviets have achieved a fear–equilibrium through the hazardous deterrence. Thus, it was not an intended armament rush (for parity), but the non-intended Mutual Assurance Destruction – MAD – with its tranquilizing effect of nuclear weaponry, if possessed in sufficient quantities and impenetrable configurations – that brought a bizarre sort of pacifying stability between two confronting superpowers. Hence, MAD prevented nuclear war, but did not disarm the superpowers.
As noted, the nuclear stockpiles in Asia are considerably modest . The number of warheads, launching sites and delivery systems is not sufficient and sophisticated enough to offer the second strike capability. That fact seriously compromises stability and security: preventive or preemptive N–strike against a nuclear or non-nuclear state could be contemplated as decisive, especially in South Asia and on the Korean peninsula, not to mention the Middle East .
A general wisdom of geopolitics assumes the potentiality of threat by examining the degree of intensions and capability of belligerents. However, in Asia this theory does not necessarily hold the complete truth: Close geographic proximities of Asian nuclear powers means shorter flight time of warheads, which ultimately gives a very brief decision-making period to engaged adversaries. Besides a deliberate, a serious danger of an accidental nuclear war is therefore evident.
One of the greatest thinkers and humanists of the 20th century, Erich Fromm wrote: “…man can only go forward by developing (his) reason, by finding a new harmony…”
There is certainly a long road from vision and wisdom to a clear political commitment and accorded action. However, once it is achieved, the operational tools are readily at disposal. The case of Helsinki Europe is very instructive. To be frank, it was the over-extension of the superpowers who contested one another all over the globe, which eventually brought them to the negotiation table. Importantly, it was also a constant, resolute call of the European public that alerted governments on both sides of the default line. Once the political considerations were settled, the technicalities gained momentum: there was – at first – mutual pan-European recognition of borders which tranquilized tensions literally overnight. Politico-military cooperation was situated in the so-called first Helsinki basket, which included the joint military inspections, exchange mechanisms, constant information flow, early warning instruments, confidence–building measures mechanism, and the standing panel of state representatives (the so-called Permanent Council). Further on, an important clearing house was situated in the so-called second basket – the forum that links the economic and environmental issues, items so pressing in Asia at the moment.
Admittedly, the III OSCE Basket was a source of many controversies in the past years, mostly over the interpretation of mandates. However, the new wave of nationalism, often replacing the fading communism, the emotional charges and residual fears of the past, the huge ongoing formation of the middle class in Asia whose passions and affiliations will inevitably challenge established elites domestically and question their policies internationally, and a related search for a new social consensus – all that could be successfully tackled by some sort of an Asian III basket. Clearly, further socio-economic growth in Asia is impossible without the creation and mobilization of a strong middle class – a segment of society which when appearing anew on the socio-political horizon is traditionally very exposed and vulnerable to political misdeeds and disruptive shifts. At any rate, there are several OSCE observing nations from Asia ; from Thailand to Korea and Japan, with Indonesia, a nation that currently considers joining the forum. They are clearly benefiting from the participation .
Consequently, the largest continent should consider the creation of its own comprehensive pan-Asian multilateral mechanism. In doing so, it can surely rest on the vision and spirit of Helsinki. On the very institutional setup, Asia can closely revisit the well-envisioned SAARC and ambitiously empowered ASEAN fora. By examining these two regional bodies, Asia can find and skillfully calibrate the appropriate balance between widening and deepening of the security mandate of such future multilateral organization – given the number of states as well as the gravity of the pressing socio-political, environmental and politico-military challenges.
In the age of unprecedented success and the unparalleled prosperity of Asia, an indigenous multilateral pan-Asian arrangement presents itself as an opportunity. Contextualizing Hegel’s famous saying that “freedom is…an insight into necessity” let me close by stating that a need for the domesticated pan-Asian organization warns by its urgency too.
Clearly, there is no emancipation of the continent; there is no Asian century, without the pan-Asian multilateral setting.
The West, Sinophobia and Cooperation
Interestingly, populace they are inhabitant of whether West or East pole share having almost common issues like weak productivity growth, proliferation of sophisticated war weapons and climate dangers; however, except for a few issues which, in particular, people of West considers most panic and hazardous. Policy-makers of the West are indulging themselves with a narrative that China’s rise would threaten capitalist economic model and the very survival of the West liberal democracy. Is it so?
Not at all. What must be ponder here is the fact that international capitalists model has stopped functioning, which have witnessed 2008 financial crisis. The leading investors and tycoons, unfortunately, have not been maintaining a steady balance between profitability and investments: profits are becoming increasing while no apparent increase in investments has been recording. Its consequential effects are lowering trends in productivity across the globe; which, in response, has been adversely affecting the prosperity of people across the globe. Establishment and corporate-based politics put the nations in a competition with each-other, that affect masses; as it is underpinned by observing myriad portion of budgets are going into military weapons.
British colonial hegemony culture, and US-led conflicts since last few decades, morphed world into most devastating state, perhaps. In this scenario, China’s rise seeds a hope to the indigent and penurious economies, which the West is fury of.
The current dispute between the US and China in terms of trade and technology, and if European take side, would morphed to a more dramatic state; where the health of the global economy will likely to be damaged. It is safe to say and notwithstanding predictable that this trade would be converted to a new hottest-cold war, which may force the emerging multipolar world to split into financial bipolar form.
How long will this bubble not burst? It will be likely to head the world towards a global conflict.
However, here’s one good news or perhaps token. West-Policy makers, instead of spreading Sinophobia, should assure that they can be living comfortably with China. It is because, so far so good, China has been depicting a cooperation and advancement, irrespective of humanity, ethnicity and religion. What’s more the West propaganda that China is appearing as geopolitical actor is equivocal; because it never influences and impose their culture on any nation.
Embracing a different economic model, China, is plausibly on a runner-up position to the US and experts claimed it will surpass the USin the next decade. Whether it’s 5G tech. Or leading status of green energy, or ultra-scales exports or its leading developments for the nations having indigent economies are hallmark achievements in recent history. The US and the West should, I propose, consider China’s rise a piece of cake, and welcome its come out while securing its interests under the umbrella of cooperation. This logic, while posing no threat, seems to be long term functional.
Beyond China-U.S. trade and where is its outlet?
Since China-U.S. trade war started in the Mid-2018, it has lasted for more than 14 months. From the beginning, the World Bank and the IMF have taken the position that the trade conflict America has trigged will serve no country’s economic progress and their action is patently wrong. Since then, China has at several occasions showed its good-will and sincerity including purchase of the products from the U.S. and the consensus reached between the two heads of state at the summits in Argentina and Japan, during which both parties agreed to move towards dropping all of the additional tariffs introduced during the dispute, and reach a comprehensive agreement that is fair and beneficial to the two sides. Yet, there is still no insurance of the end of trade war between the two largest economies of the world.
Now comes a new possibility that from October 10-11, a senior trade delegation from China, headed by Vice Premier Liu He, is scheduled to meet their American counterparts in Washington DC, led by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steve Mnuchin. Yet, the trade talks also come at a precarious time in Trump’s decision to reduce the number of U.S. forces in the Syrian border areas with Turkey and amid a spiraling impeachment inquiry into his interactions with Ukraine. More than that, the White House has repeatedly used national security as a reason to sanction Chinese companies, and this has been a talking point in U.S. presidential campaign speeches.
As a matter of fact, the Sino-American rivalry, like the German-Britain rivalry one century ago, is as much a clash of two major powers as it is of two systems: the authoritarian and state-protected development of a rising power vs. the liberal, free-market constitutionalism of a ruling power. Therefore, differences in economic system inevitably amplified the salience of the narrowing economic gap, leading the ruling power to feel cheated and the rising power to feel unsatisfied and threatened. By taking the current China-U.S. trade war into consideration, several factors are complicating the upcoming round of talks.
First, the American resentments against the Chinese economy have grown and seemed to be systematic steps to decouple the world’s two largest economies. As American scholar James Rae argued that with a series of steps, ranging from the tariff rollout to restrictions on dealings with major Chinese technology firms and “ordering” American companies to move production out of China, the U.S. has signaled that this is a trade war, indeed a confrontation over the fundamentals of two rival economic models involving at least four economic tools—standard-setting, technology acquisition, financial power, and infrastructure investment.
Second, the U.S. argues that the Chinese story historically resembles the German one in an overall sense and these parallels are not entirely coincidental. China has long admired the German export-led growth model and is skeptical of laissez faire capitalism. The founding statesman of unified Germany has been consistently seen as an icon of a modernized and powerful country since China has taken its own modernization in the later 19th century. Even it is held, though groundless, that after China emerged from the civil turbulence in 1979, it supposedly structured its development banks on the German model, though it supplemented their loans with Western capital. Under state-directed development, China eventually emerged as the world’s largest exporter with enormous market share in the United States, similarly creating economic interdependence while inadvertently laying the foundation for political competition. This is one of the sources of the Thucydides trap” occurred in the United States but rejected by China and in particular President Xi Jin-ping.
In addition, as a result of these strategies, the speed of the catchup is equally alarming to American elites now. For instance, China’s GDP was only 25% of U.S. GDP in 1990 after a decade of reforms, but has since approached American GDP in 2018. On the one hand, China, like previous Germany, is perceived to have undergone a radical and alarming economic modernization that catapulted it into the rank of first-rate power in mere decades. On the other hand, the United States, following the British mentality of the day, holds that the Chinese developmental model is a form of cheating, forced technology transfer and manipulation in finance. In light of this, China has paten reasons to be concerned that the United States has sought to halt its peaceful rise and undermine its economics by restricting trade, technology and capital flows—whether through economic means or direct subversion.
Yet, Trump’s instinct to do something is not entirely unwelcome, and some of his administration’s policies may prove promising. For example, bipartisan legislation like the Foreign Investment Risk Review Modernization Act presents an instrument to deal with China’s state-backed purchases of Western intellectual property that is somewhat more surgical than blunt U.S. tariffs. Other challenges, including China’s forced technology transfers, non-tariff barriers, and subsidies to state champions remain, and although they violate WTO rules. It seems to testify some people’s growing concerns that the economic escalation is now moving the trade dispute into the political realm, from where it had formerly been immune. First, the U.S. has already used the dubious frame of national security to make rhetorical demands as well as launch new policy initiatives to punish the Chinese firms. Second, even the issue of human rights has been inserted into the equation as the U.S. has released an export blacklist of companies with business in China’s Xinjiang Autonomous Region. Also while President Trump has been quiet enough on the riots in Hong Kong, a commentary on the topic by the Houston NBA franchise has ironically started a new row that could have major implications for the broader relationship. As Rae observed, the consequence is that debating social issues is easily a slippery slope and the intrusion of trade into China’s domestic affairs even crosses highly sensitive issues related to China’s core national interests and sovereignty. It is true that once those red lines are crossed, unraveling a pathway back will be enormously complicated.
It is understandable that China appears more optimistic or even confident in resolving the current trade war. It declared to purchase huge amount of soybeans, pork and other agricultural products from the United States, signaling that such deals will be exempt from additional tariffs imposed on U.S. goods. This is another gesture of goodwill from the Chinese side to further demonstrate its sincerity in ending the trade issues between the two sides. In the span of two days, China and the United States are supposedly to take a series of positive steps in preparation for a new round of trade talks scheduled for this talks in Washington D.C. Although China resolutely opposes any escalation in the trade war, it admits that there are no winners in a trade war, and therefore a constant escalation of tariffs is not the road to a solution. Only by adhering to the principles of equality and mutual respect, and by negotiating with a calm and rational attitude, can the dispute be defused and differences resolved. To that end, it argues for sincerity, patience and practical action needed. On the eve of the new round of talks, the two sides did have taken actions and created favorable conditions for making substantive progress, in line with the expectations of the international community.
True, as a cliché goes, where there’s a will, there’s a way. China has expected a positive result from this round of talks, but the issue is that the United States has already perceived or misperceived China exactly following the path of rising Imperial Germany one century ago. Some observers even hold that Trump’s trade approach is emotionally satisfying but diplomatically disastrous, therefore they fear his confrontational strategy and support a more cooperative economic relationship with China. Yet, in an overall sense, China has been described frequently as a rising power with patent ambition to take advantage of having a state-directed system competing in technology standards, innovation, financial politics, and geo-economics, which force the United States to seek a coordinated response. Given this, that American response should neither be blindly confrontational nor naively cooperative; instead it should be competitive. Sure competition remains the theme of the China-United States relations in the next decades. It is unclear if it takes the scenario of the cold war or the cold peace, but it is clear that the approach America will adopt would be to work with its allies to strengthen rules, set standards, punish Chinese industrial policy and technology theft, invest in research, welcome the world’s best and brightest, and create alternatives to its geo-economic statecraft. It is truly hard to predicate who might be able to play a better hand in this globalized chessboard.
Five demands, not one less: China’s test of Leadership
There were students, doctors, lawyers, activists; in short people belong to every faction of society, who came out on the streets in a number of tens of thousands in Taipei, Taiwan, marched against “totalitarianism” what they consider China holds in the regime. Yes, it was the recent September 29, Taiwanese citizens packed to the streets for upholding solidarity with Hongkongers.
Plebeian in Hong Kong (HK)—a former British colony—is protesting for the last four months against China authority. The key reason that forced them to do so was China’s authority intervention in the city internal affairs. The episode started since March this year, following an extradition bill issued by the Chief executive of HK on the edict of China. This, however, seems a little to the people outside to HK, but it instead has grim historical facts for Hongkongers. HK-plebeian considered Chief executive of HK—Lam—pro-Beijing, while Mr Xi’s regime as despotic, who has been dreaming unified China. The current legal status of HK is linked to its special status enacted by China-British declaration, 1985. It was this, according to which the city was allotted the status of semi-autonomy with a mini-constitution. While in 1997, HK was taken to handover to China, the administration of China pledged to not intervene in HK internal affairs at least until 1947.
However, China’ s demand from HK’s administration to issue extradition bill for a HK-man who has murdered his girlfriend during visit to Taiwan. HK-plebeian considered it an example of attack by China on its internal system and has now been protesting. At a rally, protestestors contended five demands: the withdrawal of extradition bill, relabeling them as rioters, assurance of universal suffrage to choose chief executive and legislature for the city, and lastly patently investigation for police violence against the demonstrators and activists.
Are there atrocities?
Yes: Various televised recordings shows what has been going on there: They have brutally been shelled, thrown gas, and fired.
From the day first, China viewed it the CIA’s plot aiming to stir up people against China Cumminst Party’s rule or a foreign-led campaign against the regime.
Mark Pinkstone, an Australian journalist with 50 years of experience in Hong Kong, said, “The Basic Law, the constitutional document that supports ‘one country, two systems,’ provides freedoms of expression, speech and religion. Not one of them has been eroded since the handover in 1997. The current demonstrations are living proof of that.”
According to the Human Freedom Index monitored by the Cato Institute, based in Washington Hong Kong is ranked No 3, trailing only New Zealand and Switzerland. The index ranks 162 countries and autonomous regions based on 79 measures of personal and economic freedom. The US is ranked 17 as measured by the same indicators.
The World Economic Forum published a survey of people from 25 nations who were asked if they thought their own government was heading in the right direction or not. The survey was conducted between October and November of 2016.
China emerged leading the pack, with 90% of its citizens responding that their government was on the right track while only 10% thought not. The US was squarely in the middle, ranked at 13, with 35% of its citizens thinking their government was going in the right direction and 65% disagreeing.
Once an ideological and internationally solitary state China is now transformed to a most advanced one under the rule of communist party. It made its intriguing appearance on the chessboard of international power, however, still enduring some domestic challenges–HK is one of them. While it claims to work towards various connectivity and cooperation based projects, yet do not have efficacy to let the World its way of leaderships. Its think-tanks are either do not want to lead or they believe in pragmatic steps rather than bolstering theoretical ideas. Even its media can not counter the west propaganda and what the consequential effects are people around the globe hear much about it from the west. The current HK’s issue is amid the problems which matter more and are the real tests of China’s leadership.
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