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The transformation of the North Korean military and political system

Giancarlo Elia Valori

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How is North Korea’s political system currently changing, pending the Great Transformation with the USA and South Korea, wanted and carefully directed by Kim Jong-un?

In the future the Great Leader wants to have a new ruling class suitable for the economic and strategic changes which will affect North Korea in the coming years.

Far-reaching military and economic changes, with the support of Iran, the Russian Federation, China and other countries.

According to Kim Jong-un, without prejudice to the regime’s structure, everything else must change.

In the framework of this change, the State and the Party must be turned into quick and agile tools in the hands of the Leader and of his partly-renewed inner circle.

Kim Jong-un’s primary goal is to control the initial phase of North Korea’s economic transformation, as well as to keep the grip on the Armed Forces and the Party, and to finally create a new ruling class for managing denuclearization and the economic transformation.

In the case of North Korean Armed Forces, the new appointments have mainly concerned the Ministry of People’s Armed Forces, the Chief of Staff Department of People’s Armed Forces – with new appointments also in the Directorate of Operations – and, finally, the Director of the General Political Bureau of the Armed Forces.

In the specific hierarchy of the North Korean military system, these are the three most important posts.

Furthermore, each of the three above mentioned roles implies the alternating or fixed presence of the Workers’ Party of the Democratic People’s Republic of Korea in the Political Bureau.

Therefore the new appointments are No Kwang Chol, former first vice-Minister of the Ministry of People’s Armed Forces, replacing Pak Yong Sik, while Ri Yong-gil replaces his former boss, Ri Myong-su.

Ri Yong-gil was Commander of the North Korean Armed Forces, as well as member of the Party’s Central Committee, but he was later removed from office in February 2016.

As early as 2013 he had been Chief of Staff of the Armed Forces and, despite the recent events, he had a stable and secure military career.

From 2014 to 2018 Ri Yong-gil was also Head of the Pyongyang Committee of the Workers’ Party.

From 2012 to 2013 he accompanied Kim Jong-un on many visits to nuclear and bacteriological-chemical sites.

Considering the symbolic relevance of the North Korean power, he is probably one of the true leaders of the nuclear and bacteriological-chemical program of the North Korean Armed Forces.

Ri Yong-gil was at first Party’s official and later became officer of the North Korean Armed Forces, while always keeping political and party positions rather than technically military ones.

Moreover, Kim Jong-un is still playing many of his cards on the Defence Ministry.

It is a source of foreign currency and of excellent profit in relation to the friendly powers, as well as of social control and of real and effective foreign policy.

Under the current leader, Kim Jong-un, six new Defence Ministers have been appointed.

Pak Yong-sik is one of the Ministers removed from office.

Probably he had some business roles, but we cannot rule out that in the future he can start again his career, interrupted on the basis of unpleasant news about his role as businessman in the phase of the Sunshine Policy with South Korea.

He had been member of the Council of State, of the Central Committee and of the Political Bureau of the Workers’ Party of Korea, as well as of the Central Military Commission and finally of the Political Committee of the Pyongyang Defence Command.

Clearly Kim Jong-un is measuring his potential enemy lobby.

And he is certainly planning the generational and political change of all the important positions of the People’s Democratic Republic of Korea.

As we will see later on, the new Minister No Kwang Chol was Head of the Second Economic Committee, which is in charge of the defence industry and hence connected with North Korea’s supervision and construction of conventional and nuclear weapons.

He is an excellent manager loyal to Kim Jong-un.

He held various posts in the North Korean political system.

These newly-appointed people have certainly been selected due to their absolute loyalty to Kim Jong-un and the Party,but we must better analyse the decision-making process of the North Korean Armed Forces, as well as their specific role.

The naive analysts who think that Kim Jong-un is “prisoner” of his ruling class have understood nothing of North Korea’s political and economic mechanism.

For the Leader, both loyalty and professional skills are needed. He is willing to get over some affectation or groveling too much, but Kim Jong-un wants the best of his technocracy, subject to loyalty to the Party and to himself.

And, above all, subject to the absolute non-involvement in any financial and commercial activity having even the slightest hint of irregularity.

Corrupt people are always at the mercy of the enemy’s blackmail.

The Ministry of People’s Armed Forces, however, is currently placed under the dual and symmetrical control of the State Affairs Commission of the People’s Democratic Republic of Korea and of the Central Military Commission of the Workers’ Party of Korea.

Nevertheless the Ministry deals mainly with the logistics and training of the Special Forces and operates with approximately 36 external organizations.

The Ministry acquires the orders, requests and notes from the basic military units and later organizes and distributes them between the Central Military Commission, the General Staff and the Party’s Ammunition Department.

The Ministry also deals with military finance and operates with commercial companies and production units which can export goods and hence supply the country with hard currency.

In fact, as already noted, at least 36 commercial companies operate in the field of export and internal distribution.

But someone talks about 50 of these companies.

The naive Western analysts were wrong in believing that the People’s Armed Forces were a “terrible cost” for the people and a huge obstacle to economic development.

The opposite was, and is, true.

Therefore the military system operates, above all, with the 44thBureau of the People’s Armed Forces, in controlling most of North Korea’s hard currency flows.

The Technology Transfer Department has also relations with both the companies owned by the Party and by the Ministry’s Ammunition Department.

In particular, it deals with the acquisition of information technology and advanced weapon systems.

The General Department of Logistics deals above all with the network of factories and farms supplying food and clothing to the People’s Armed Forces.

Sometimes they operate for the civilian and foreign market of food and clothing.

The Ministry, however, is subject to the control of the State Affairs Commission, which originates both from the Government and the Party, as well as from the Central Military Commission, which anyway results from the Party-government link only.

It is worth recalling that as early as 2000, the Ministry of People’s Armed Forces directly controlled the Political Department, the General Staff, the Military Security Command, the Reconnaissance Bureau and the Coast Guard Command.

Later, around 2007, all these structures became an integral part of the Ministry itself, which was placed under the control of the National Defence Commission.

In 2016 the latter saw its powers restricted and was placed under the State Affairs Commission’s control.

It should also be noted that, unlike Kim Jong-il, Kim Jong-un has revolutionised the People’s Armed Forces more than any other predecessor.

For example, there was the handover in February 2009 – just before Kim Jong-un’s role as heir to Kim Jong-il was officially declared.

As you may recall, this happened in September 2010.

At that stage, only seven of the most important positions in the North Korean military system were changed. It was the beginning of Kim Jong-un’s grip on power.

The North Korean Leader had carefully analysed all the military and economic positions well before his full rise to power.

From July to November of that year, the Political Committee (PC) of People’s Armed Forces was combed through by the North Korean leadership.

It was, in fact, the first scrutiny carried out by the Organization and Guidance Department after 1996.

There were some surprises: for example, the PC ships that secretly fished in Japanese waters; some military promotions in exchange for “bribes”; some accounting problems and some suspicions of corruption.

As is typical of his political role, Kim Jong-un has been very harsh in putting an end to these situations and punishing these behaviours.

In fact, in 2017 many executives of the Political Bureau of People’s Armed Forces were removed, with repercussions on the military forces that,as can be easily imagined, affected also the Ministry for Foreign Affairs.

Only after this long “purge” did Kim Jong-un focus on negotiations with South Korea and the USA.

In November 2017 Son Chol Ju, one of the officers promoted with the position of  Colonel entrusted “with upper management and tasks”, was appointed as Head of the Organizational Affairs Department of People’s Armed Forces, but his appointment was made public only in May 2018.

As already noted, Son Chol Ju has replaced Jon Nam Jin and, most likely, also Kim Wong Hong.

Until that date Son Chol Ju had been the Director of the Political Bureau with the portfolio for organizational affairs, where he had spent his entire career.

Before taking this post, Son Chol Ju was political Director of the Air and Anti-Air Force, in addition to being Head of the respective political committee.

Probably Son Chol Ju was Head of the Political Bureau with the Propaganda portfolio, especially in the Pyongyang region.

In the meeting held on April 2018 Kim Jong Gak was elected to the Political Committee of the Workers’ Party of Korea.

These changes of the North Korean ruling elite, however, show the extreme and non-negotiable power now reached by Kim Jong-un, unlike what claimed by the most naive, but very widespread, Western analyses.

This is one of the signs that, in a North Korean extremely important phase, the Party wants to control its “separate bodies”, with a view to avoiding “political advantages” and the systems of influence – even the foreign ones – as well as all the grey and black areas of finance which must currently be transformed and be directly controlled by the Party and its ruling class.

In this phase we need to study the careers of important personalities such as Jo Kyong Chol, the Director of the Military Security Command since 2009, as well as full member of the Central Committee of the Workers’ Party of Korea and member of Kim Jong-il’s Funeral Committee.

Jo Kyong Chol was essential in strengthening Kim Jong-un’s power – a member of the “old guard” that wanted continuity, independence and military power for North Korea.

Hence he has accepted the new system of international relations in North Korea.

Currently Kim Jong-un certainly wants the regime’s continuity, but also and above all the emergence of a ruling class capable – by training, background and political culture – of organizing the North Korean stability in a phase of opening to the world market.

Ri Song Guk, another fer de lance of Kim Jong-un’s current political and military system, currently leads North Korea’s Fourth Army Corps – after leading the 39th Division – a very special military structure deployed near the Yellow Sea and the Northern Limit Line.

He is the current Director for Special Operations of the Central Command.

Yung Jong-rin is serving as the Commander of the Supreme Guard Command – therefore he is responsible for Kim Jong-un’s personal safety, but he had the same post with Kim Jong-il and is hence the Commander of the most technologically advanced security service in North Korea.

He has been member of the Central Military Commission since September 2010, as well as member of the Party’s Central Committee, and General since April 22, 2010.

Hence Kim Jong-un is preparing the ruling class that will defend North Korea’s interests in its new, gradual and slow globalization.

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 "La Centrale Finanziaria Generale Spa", he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group and member of the Ayan-Holding Board. 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 of "Honorable" of the Académie des Sciences de l'Institut de France

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East Asia

Chinese Game: U.S. Losing Asia and Africa

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As the US sanction pressure on Russia intensifies, the US economic and political competition with their most important economic partner, China, is noticeably getting more fierce. Simultaneously, Washington has been exchanging direct and indirect economic strikes with Turkey and the EU. (In the case of the European Union, an exchange of blows occurs in connection with Washington’s threat to punish European companies that are set to ignore the US ban on cooperation with Iran.)

Two Lines of Confrontation

The aggravation of the US-Chinese rivalry proceeds along two lines: first, the rates in the “tariff war” between the two countries are rising; second, the struggle between Washington and Beijing for lucrative markets in Asia and Africa is intensifying. Both these processes are interrelated, but in the current circumstances the main focus of the second line  is the fight for markets.

In the first place, I would like to talk briefly about the “tariff war” between the US and China as an important element in relations between the two countries, without which it is impossible to understand all the subtleties of competition between these two countries in Asia and Africa. As is known, the “tariff war” worsened after the US president first introduced a 25-percent duty on the import of 818 products from China, the total value of which was estimated at 34 billion dollars a year. Then came the even more threatening statement of the US Trade Representative Robert Lighthizer: “On July 18, the President instructed me to compile the list of Chinese goods worth 200 billion dollars for imposing additional duties of 10 percent … The President ordered me to consider an increase in the proposed level from 10 to 25 percent “. After China responded with a 25-percent duty on 34 billion dollars’ worth of American goods, Trump did not rule out the possibility of raising duties on all Chinese imports in the US. The total value of Chinese commodities in the US is currently estimated at about $ 500 billion.

Simultaneously, the United States has loudly announced its intention to compete with China in influencing countries that participate in the Chinese transport project “One Belt, One Road”, which is designed to revive the Great Silk Road, which ran throughout the whole of Eurasia in the Middle Ages. As he set off for  the Regional Cooperation Forum in Singapore in July this year, US Secretary of State Mike Pompeo announced his intention to counteract China’s so-called “silk” influence. According to Pompeo’s plans, the appropriate measures should cost the US budget a trifling $ 113 million against China’s hundreds of billions which is exactly the amount Beijing is planning to allocate for the implementation of “One Belt, One Road” project.

Influence at Low Cost

If the United States intends to squeeze China out of Asia at such miniscule costs, they obviously underestimate the rival. At least two factors work for Beijing: first of all, China is one of the region’s oldest “aborigines”; besides, Washington, waging a “tariff” war against Beijing, can thus deprive itself of a part of the Chinese oil market, making China even more attractive for oil traders from Iran and Russia – the key players in the project “One Belt, One Road”.

The American Oil Price news site has described the impact of the US-China “tariff war” on the Asian oil players as follows: “China has threatened to impose a 25- percent import tariff on crude oil and oil products from the United States. If this threat comes into effect, crude oil from the US can become non-competitive in terms of value. Such a tariff from China will not only reduce the income of oil exporters from the US, forcing them to look for new markets … it can become a source of additional revenues for the OPEC countries. And the OPEC countries are the suppliers that the US has pushed into the background in recent years”, says Oil Price researcher Irina Slav. oilprice.com

Considering that for the American oil industry China is the largest export market after Canada, it becomes clear that this matter is fraught with so huge losses, billions in fact, that Secretary of State Mike Pompeo with his 113 million dollars sounds ridiculous.

Psychological Error

Judging by Pompeo’s statements, Americans are committing a psychological mistake in Asia. This is the mistake that led to China pushing the US to the sidelines in many countries of Africa. The matter is that the US is trying to replace genuine assistance by self-praise, flaunting any of its measures as valuable and corruption-free, alleging that whatever it does is a good example to follow. “The world knows that with American companies you get what you see. Honest contracts, honest conditions, there is no need for behind-the-scenes machinations. Decency in business is the pillar of our economic vision in the Indo-Pacific Region”, the Secretary of State told CNN.

Meanwhile, South-East Asian nations know only too well about the US policy in this region. Alas, it is simply impossible to describe this policy as ever humanistic, open and devoid of corruption – it would mean contradicting the historical truth. The brutal war in Vietnam in the 1960s and 1970s, the support of the dictatorial and corrupt regime of Ferdinand Marcos in the Philippines (1965-1986), the “secret wars” of the CIA in Laos and Cambodia during military operations in Vietnam – the memory of all these is still fresh in the region. All the countries affected (Vietnam, the Philippines, Laos, Cambodia) are members of ASEAN. In such circumstances, the self-praising speeches by American officials at ASEAN forums trigger a skeptical attitude, to say the least. And although many ASEAN countries may feel wary of China and are unlikely to have cloudless relations with Beijing in the near future, the US’ psychologically wrong tactics have already antagonized many of these states pushing them toward Russia and China. This is proved by the recent attempts by Filipino President Rodrigo Duterte to diversify the traditionally pro-American policy of his country, enlisting the support of Russia and even China, a long-term rival. Duterte’s historic visit to China in 2016 showed who had actually won the fight for the “heart and mind” of the Philippine leader – a struggle in which the United States initially had very strong positions. aljazeera.com

The anti-Duterte media campaign, which was launched in the US and the EU soon afterwards, has no direct consequences so far. American accusations against Duterte in connection with an excessively fierce fight against the drug mafia sounded hypocritical amid the “war on drugs” which was imposed by the United States on Mexico and Colombia in the 2000s and in which at least 45,000 people were killed.

Lost In Asia – Will Lose In Africa

As far as Africa is concerned, in recent years China has outplayed not only the Americans, but the seemingly familiar with the local specifics former colonial masters of this region – the French and the British.

After the first Forum on China-Africa Cooperation (FOCAC) in 2000, the Chinese side found the right approach to its African partners – without instruction, without interference in internal affairs, with investment proposals supported by the banking sector of the Middle Kingdom. The first ministerial meeting of FOCAC attracted representatives of 44 countries from 53 states of the African continent. Fairly soon, China made these forums pan-African by removing Taiwan. Until the middle of the 2000s Taiwan had its diplomatic missions in several African countries (including Chad and Senegal), which excluded the possibility of communication between these countries and the PRC.

Orientation – Bandung

The African-Chinese “union of values” began with the Bandung Conference of 1955, during which 29 countries of Asia and Africa proclaimed the principles of non-interference, respect for each other’s sovereignty and comprehensive economic cooperation. The figures of the Indian Jewaharlal Nehru, the Egyptian Gamal-Abdel Nasser and the Chinese Zhou Enlai, which live in the memory of many in connection with their participation in the Bandung Conference, have ‘sanctified’ a new approach to China’s cooperation with Africa. All three became heroes in their countries, and the Chinese leadership, headed by the then Secretary-General Hu Jintao, was not mistaken in the choice of a model: in the coming years China will most likely gain an economic foothold in Angola, South Africa and the Congo-Brazzaville state. According to the long-term president of this country Denis Sassou Nguesso, “Africans for the first time do not expect foul play from people with a different skin color who build their roads and power lines.” (Source: the book by French journalists Serge Michel, Michel Beuret “Cinafrica, Pechino qalla conquista del continente nero” – “Beijing in the process of conquering the black continent.” Milano, 2009, p. 23)

At present, Africa’s trade with China amounts to 220 billion dollars, with the US – 37 billion. Foreign direct investment from China to African countries is estimated at $ 50 billion, although many experts claim that the real figure is higher: too much infrastructure, new plants and modern services have appeared in Africa for such “modest” Chinese money. (Source: book by French journalists Serge Michel, Michel Beuret “Cinafrica, Pechino qalla conquista del continente nero” – “Beijing in the process of conquering the black continent.” Milano, 2009, p. 22).

It should be noted that Africa did its best to repay all their benefactors with loyalty: together with China, leaders of the African Union reacted negatively to the armed, violent overthrow of the leader of the African Union – Libyan Muammar Gaddafi. China knows that it can count on the majority of African votes in the UN. But the main thing is gratitude, which in the case of Africa-China relations is absolutely sincere.

First published in our partner International Affairs

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The Uyghur militant threat: China cracks down and mulls policy changes

Dr. James M. Dorsey

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China, responding to United Nations criticism, academic and media reports, and an embarrassing court case in Kazakhstan, has come closer to admitting that it has brutally cracked down on the strategic north-western province of Xinjiang in what it asserts is a bid to prevent the kind of mayhem that has wracked countries like Syria and Libya.

The Chinese Communist Party’s Global Times charged in its Chinese and English editions that the criticism and reports were aimed at stirring trouble and destroying hard-earned stability in Xinjiang, China’s gateway to Central Asia and home to its Turkic Uyghur and ethnic minority Central Asian Muslim communities.

The crackdown, involving introduction of the world’s most intrusive surveillance state and the indefinite internment of large numbers of Muslims in re-education camps, is designed to quell potential Uyghur nationalist and religious sentiment and prevent blowback from militants moving to Central Asia’s borders with China after the Islamic State and other jihadist groups lost most of their territorial base in Iraq and Syria.

Concern that national and religious sentiment and/or militancy could challenge China’s grip on Xinjiang, home to 15  percent of its proven oil reserves, 22  per cent of its gas reserves, and 115 of the 147 raw materials found in the People’s Republic as well as part of its nuclear arsenal, has prompted Beijing to consider a more interventionist policy in the Middle East and Central and South Asia in contradiction to its principle of non-interference in the affairs of others.

The Global Times asserted that the security situation in Xinjiang had been “turned around and terror threats spreading from there to other provinces of China are also being eliminated. Peaceful and stable life has been witnessed again in all of Xinjiang… Xinjiang has been salvaged from the verge of massive turmoil. It has avoided the fate of becoming ‘China’s Syria’ or ‘China’s Libya,’” the paper said.

Five Chinese mining engineers were wounded last week in a suicide attack in the troubled Pakistan province of Balochistan, a key node in the US$ 50 billion plus China Pakistan Economic Corridor (CPEC) intended to link the strategic port of Gwadar with Xinjiang and fuel economic development in the Chinese region. The attack was claimed by the Balochistan Liberation Army (BLA) rather than Uyghurs.

The Global Times admitted that the Chinese effort to ensure security had “come at a price that is being shouldered by people of all ethnicities in Xinjiang.”

China has not acknowledged the existence of re-education camps but the U.N. Committee on the Elimination of Racial Discrimination said last week that it had credible reports that one million Uyghurs, were being held in what resembled a “massive internment camp that is shrouded in secrecy.”

The UN assertion of the existence of the camps is corroborated by academic research and media reports based on interviews with former camp inmates and relatives of prisoners, testimony to a US Congressional committee, and recent testimony in a Kazakh court by a former employee in one of the camps.

Writing in The Wall Street Journal, US Republican Senator Marco Rubio, the chair of the congressional committee, called for the sanctioning of Xinjiang Communist Party Secretary and Politburo member Chen Quanguo and “all government officials and business entities assisting the mass detentions and surveillance”. He also demanded that Chinese security agencies be added “to a restricted end-user list to ensure that American companies don’t aid Chinese human-rights abuses.”

Stymying the international criticism and demands for action before they gain further momentum is imperative if China wants to ensure that the Muslim world continues to remain silent about what amounts to a Chinese effort, partly through indoctrination in its re-education camps, to encourage the emergence of what it would call an Islam with Chinese characteristics. China is pushing other faiths to adopt a similar approach.

Concern that Uighur militants exiting Syria and Iraq will again target Xinjiang is likely one reason why Chinese officials suggested that despite their adherence to the principle of non-interference in the affairs of others China might join the Syrian army in taking on militants in the northern Syrian province of Idlib.

Syrian forces have bombarded Idlib, a dumping ground for militants evacuated from other parts of the country captured by the Syrian military and the country’s last major rebel stronghold, in advance of an expected offensive.

Speaking to Syrian pro-government daily Al-Watan, China’s ambassador to Syria, Qi Qianjin, said that China was ‘following the situation in Syria, in particular after the victory in southern (Syria), and its military is willing to participate in some way alongside the Syrian army that is fighting the terrorists in Idlib and in any other part of Syria.”

Chinese participation in a campaign in Idlib would be China’s first major engagement in foreign battle in decades.

China has similarly sought to mediate a reduction of tension between Pakistan and Afghanistan in an effort to get them to cooperate in the fight against militants and ensure that Uyghur jihadists are denied the ability to operate on China’s borders. It has also sought to facilitate peace talks between the Afghan government and the Taliban.

Chinese officials told a recent gathering in Beijing of the Afghan-Pakistan-China Trilateral Counter-Terrorism dialogue that militant cross-border mobility represented a major threat that needed to be countered by an integrated regional approach.

Potentially, there’s a significant economic upside to facilitating regional cooperation in South Asia and military intervention in Syria. Post-conflict, both countries offer enormous reconstruction opportunities.

Said Middle East scholar Randa Slim discussing possible Chinese involvement in the clearing of Idlib: “You have to think about this in terms of the larger negotiations over Chinese assistance to reconstruction. Syria doesn’t have the money, Russia doesn’t have the money. China has a stake in the fighting.” It also has the money.

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Sino-American Strategic Rivalry

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From a strategy point of view, Clausewitz and Sun Tzu are similar in least in one respect: Sun Tzu’s idea of moving swiftly to overcome resistance is similar to the one endorsed by Clausewitz and practiced by Napoleon.

The modern day example can be traced to the 2003 “shock and awe” campaign by the U.S. in Iraq and the Iraqi reliance on a strategy similar to Russian defense against Napoleon’s attack in his Russian Campaign of 1812. Napoleon’s invasion of Russia was the beginning of the end of his ambition. He won many battles but lost the war.

And America is suffering from the same fate as the struggle for a new Iraqi political identity is not going to go the American way. The same can be said about Afghanistan.

This is precisely why discussions on war must be assessed from a geopolitical point of view as Clausewitz has noted that “war is an extension of politics”. And the reverse is also true, one may add.

A quick tour of modern history reveals the true winners and losers of wars, by comparing a country’s power before and after a war. The United Kingdom and Germany were both losers of the two World Wars. And the difference of losses between them is a matter of degree.

But the U.K. suffered greater and irreversible losses than Germany.  The British ceded its number one geopolitical leadership position in the world to the United States. But Germany has been able to regain its position as Europe’s great economic and political power, while the prospects of the U.K. taking back the world leadership position from the U.S. are next to none.

America has been a geopolitical winner overall since the two World Wars. But its power has been in relative decline. It has failed to advance its power after the wars in Afghanistan, Iraq, Libya, and most recently Syria. It has failed so far to advance the momentum created by the Arab Spring as it has since become the Arab Winter, or to make much headway in Latin America, in Ukraine, and in Africa.

America’s key failures in the past decade are failures in being able to offer tangible economic benefits to target countries while expanding its military involvements. The country can win military battles because of its overwhelming fire power but has not been successful in its after-war “nation building” efforts.

Despite China’s numerous shortcomings, many developing countries quietly wish they could become a mini-China economically. They want to live better with more consumption but they probably want to do it by being able to build up their country’s infrastructure and an industrial base.

America’s recent announcement that it will invest $113 million in technology, energy and infrastructure initiatives in the Indo-Pacific as part of a new strategy to deepen ties with the region has received jaw-dropping reception – sarcastically speaking.

As an example, a survey of North American light rail projects shows that costs of most LRT systems range from $15 million to over $100 million per mile. So how far $113 million or even $1.13 billion can go even if one is to factor in some discounts if projects are implemented in lower cost Indo-Pacific countries? Remember, $113 million is for countries as in plural!

This pales in comparison to China’s Belt and Road initiative (BRI) that ranges between $1 trillion and $8 trillion. BRI is not without its problems and critics. Concerns have been raised about increases in some participating countries’ level of national debt as a result of massive infrastructure building. But because of the scale of the initiative, even if it could only succeed at the lowest end of the range, would offer some real and substantial benefits to countries that can benefit from it.

While freedom and democracy are ideals that have universal support in the abstract – the key words here are “in the abstract” – successful nation-building efforts are realized in the nitty-gritty of people’s everyday economic well-being. This is particularly true among developing countries.

Cheap Chinese smart phones have enabled Africans to get market information to transact with one another more beneficially, to acquire news and information, to lower transaction costs through mobile payments. Inexpensive Chinese motor bikes have become life-saving vehicles for rural populations carrying goods to markets as well as the sick to clinics or hospitals many miles away that they previously could not do.

While the U.S. is no doubt keen on promoting democracy, it is the Chinese that provide affordable smart phones to the masses that allow the spread of information.

While some of the best and the brightest, the elites, the upper middle class in developing countries may desire to have an opportunity to earn an Ivey League degree, to emigrate to the U.S. for better opportunities, to acquire an American passport as an insurance policy, it’s the Chinese that are doing the grunt work of building and training local personnel to conduct trains, to train electrical power linemen to install and repair of overhead or underground power lines as well as to maintain and repair of other electrical and hydro-electrical subsystems and components.

Regardless of how one’s view of China’s strategic intents in its international involvements, the strategies between the U.S. and China cannot be more different. China builds and America destroys.

But many countries especially in the Indo-Pacific region are taking advantage of the rivalry between these two powers to extract the best deals for themselves and you can’t blame them. Economically they want to cooperate with China but militarily they want to get a free ride from the U.S. and the U.S. does not mind that as long as it falls within America’s China Containment strategy.

And time will tell which strategy will work better – economic cooperation or military encirclement?

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