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The 70th Anniversary of the Koreas

Gleb Ivashentsov

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Seventy years ago, the Korean nation was divided into two separate states. On August 15, 1948, the Republic of Korea was founded in the south of the Korean Peninsula, and on September 9, 1948 the Democratic People’s Republic of Korea was founded in the north.

A Longstanding Confrontation

The Korean War of 1950–1953, which saw the United States fighting on the side of the South under the UN flag, was the bloodiest and most destructive conflict since World War II. De jure, the two Korean states are still at war. This is because the Korean Armistice Agreement signed on July 27, 1953 to stop the war is nothing but an agreement between the commanders-in-chief of the two armies to suspend military hostilities. Two powerful military contingents with cutting-edge weapons and equipment are still at the ready on both sides of the 38th parallel that divides North and South Korea. And these contingents are not just made up of Korean troops. Under the Mutual Defense Treaty Between the United States and the Republic of Korea, U.S. contingent of 28,500 troops is deployed in South Korea. When Pyongyang started to develop nuclear weapons and missiles to prevent the United States from intervening in the inter-Korean military conflict, this further exacerbated the situation.

“The Asian Tiger” and a “Rogue State”

Today, South Korea is referred to as the “Asian Tiger.” It is a highly developed and prosperous state: it is the world’s second-largest shipbuilder; the third-largest manufacturer of semi-conductors and displays; the fifth-largest automobile manufacturer; and the six-largest producer of steel. South Korea invests 4 per cent of its GDP into research, more than any other OECD member, and it has the fourth-largest number of patent applications for inventions, behind the United States, Japan and China. Seoul has its own space programme and has plans to send its first probe to the Moon’s orbit by 2020 and another to its surface by 2025.

North Korea certainly lags behind South Korea in its economic development; however, statements about the country’s cultural and technological backwardness are largely the work of western media. And we are not only talking about the fact that Pyongyang would not have been able to develop its own nuclear programme that the world is so concerned about if it did not have a high level of scientific and industrial development. No one can deny that the new blocks of high-rise buildings in Pyongyang are practically indistinguishable from those in Seoul, that Pyongyang’s metro is a year older than Seoul’s, and that North Korea launched its artificial satellite before South Korea did.

Since North Korea has its own nuclear programme, the United States has declared it a “rogue state” and has not only imposed its own sanctions on the country, but has also managed to have very harsh sanctions imposed on it by the UN Security Council. It is curious, however, that the timing of the sanctions against North Korea (after the country carried out its first nuclear test) coincided with the North Korean economy emerging from the very severe economic crisis of 1995–2000, after it had overcome famine and started to show signs of economic growth. Even more paradoxically, economic growth in North Korea picked up pace significantly in 2012–2013, when the sanctions were tightened. This was primarily due to the fact that when Kim Jong-un came to power, he launched active, albeit quiet, market reforms in the country.

From Confrontation to Dialogue

The tension around Korea has been one of the greatest threats to international security in recent years. Today, the global community is focused on forcing Pyongyang to abolish its nuclear programme. However, this alone will not eliminate the threat of a new Korean war involving the United States, South Korea’s military ally. Shutting down North Korea’s nuclear programme requires, first, a reconciliation between the two Koreas and, second, solid guarantees to Pyongyang that the United States will not take aggressive measures.

2018 was marked by important positive events in Korean affairs. On April 27, President of South Korea Moon Jae-in met with the leader of North Korea Kim Jong-un in Panmunjom. Naturally, this summit between the heads of two Koreas (only the third ever) did not resolve all the problems that had accumulated in the bilateral relations over the decades of confrontation. However, it did open the way to move on to specific talks on trade and economic cooperation and a military and political détente.

We also saw the first ever U.S.–North Korea dialogue on the North Korean nuclear programme, with a summit between Donald Trump and Kim Jong-un being held in Singapore on June 12, 2018. Even though the summit’s declaration contains nothing more than generic phrases, one thing is without doubt: no nuclear or conventional war will take place in Korea in the near future. The handshake between Donald Trump and Kim Jong-un is a real contribution to the cause of peace in Korea and throughout the world.

A Complex Knot of Problems

The North Korean leadership is clearly interested in a détente on the Korean Peninsula. While the Byungjin line proclaimed by Kim Jong-un several years ago entailed building a powerful nuclear potential and creating a prosperous economy, in April 2018 the Plenum of the Central Committee of the Workers’ Party of Korea said that success in building the nuclear potential allowed North Korea to focus all efforts on building a socialist economy.

The proof of Pyongyang’s words is contained in its actions. Not a single nuclear test has been carried out for almost a year now, and missile tests have not been held for over six months. North Korea’s Punggye-ri Nuclear Test Site has been shut down.

Pyongyang appears to have a precise step-by-step programme of possible bargaining with both Seoul and Washington on mutual security commitments. Kim Jong-un, however, is clearly dragging his feet in developing the positive work started at the summits with Moon and Trump. The reason appears to be that he is not confident that both his opponents will stick to the deals. Back in the day, the conservative President of South Korea Lee Myung-bak had no qualms about abolishing his predecessor’s “sunshine policy” in the country’s relations with North Korea, while George W. Bush did not hesitate to get rid of Bill Clinton’s “North Korea Appeasement Policy.” Is there any guarantee that in a couple of years, peace-loving Moon will not be replaced with some North Korea hater, or that Trump, Kim’s counterpart in Singapore, will not be impeached?

The nuclear disarmament of North Korea and the provision of security guarantees to Pyongyang is too complicated a knot of problems to be cut in a single stoke, and by the sole hands of the United States. The solution requires multilateral international efforts, and this cannot be done without the involvement of China and Russia, two countries that have historical and geographical ties with Korea. It would appear that both the Koreas are counting on the participation of Russia and China. This much is clear from the fact that Kim Jong-un has visited China twice over the past two months, and President of the Presidium of the Supreme People’s Assembly of North Korea Kim Yong-nam and President of South Korea Moon Jae-in have both paid official visits to Moscow.

The optimal way would be to go back to the six-party talks on the Korean nuclear programme: the two Koreas, the United States, China, Russia and Japan. The talks should be structured as step-by-step negotiations using the principle of “action in exchange for action.” It would be wise at the initial stage to propose that North Korea’s nuclear programme be separated from its missile programme. North Korea’s nuclear status is set forth in the country’s Constitution, and this subject currently appears non-negotiable for Pyongyang. At the same time, a freeze on the missile programme and guarantees of non-proliferation of missile and nuclear technologies can be negotiated. Given that Pyongyang has essentially introduced a moratorium on missile launches and nuclear tests, the issue of lifting some sanctions from North Korea may be raised at the UN Security Council to stimulate Pyongyang to further roll back on its nuclear and missile programme. For instance, to get North Korea to stop developing ICBMs, freeze the production of nuclear materials and open its nuclear facilities for international inspections.

Political Steps

Several purely political steps would also be useful. For instance, it would be good to correct the entirely unnatural situation in which the United Nations, as a party to the Korean War (in that war, Pyongyang’s enemy fought under the UN flag), is still officially at war with North Korea, one of its members. For that purpose, the upcoming session of the UN General Assembly could adopt a UN Security Council declaration stating that the Korean War is in the past and that the UN Security Council is putting an end to that chapter and, therefore, the UN Command is no longer needed in Korea.

To further promote the inter-Korean détente, it would probably be useful for North Korea and South Korea to conclude an agreement between commanders-in-chief of the two countries on preventing dangerous military activities; such an agreement could serve as a landmark on the road to concluding a Peace Treaty to replace the 1953 Armistice Agreement. This would mean that any incidents that may arise due to dangerous military activities would be promptly stopped and settled through peaceful means without resorting to the threat or use of force. The document could be based on provisions of the 2015 Agreement between the Government of the Russian Federation and the Government of the Democratic People’s Republic of Korea.

Korean Affairs and Russia

The best way to diffuse tensions between neighbouring states and establish relations based on mutual trust is to run joint, long-term and mutually profitable economic or scientific and technological projects in. Russia could play a prominent part in such work on the Korean Peninsula.

The two Korean states are immediate neighbours of Russia, and Russia is interested in having good and mutually beneficial relations with both. And there is a good basis for this to happen. Historically, Russia has never had any disputes with either of the Koreas. Russians have never set foot in Korea as an aggressor. On the contrary, the country has always welcomed Korean people into its territory: 2014 marked the 150th anniversary of Korean resettlement in Russia. In 1945, it was the Soviet Army that liberated Korea from the colonial power.

There are no disputes between Russia and either of the Koreas today either. The leadership of South Korea, for instance, stresses its interest in taking its relations with Russia to the level of “strategic partnership.” It is noteworthy that, despite the persistent pressure of the Unites States, South Korea did not join the sanctions against Russia imposed after the events in Ukraine.

During his three meetings with Vladimir Putin over the past year, Moon Jae-in has unfailingly stressed collaboration with Moscow on denuclearizing the Korean Peninsula, establishing peace there and developing Eurasia. Economically, South Korea that has virtually no mineral or other resources and is highly interested in exploring the natural wealth of Siberia and the Far East. At the same time, Russia is a promising market for South Korea’s industrial products.

South Korea is also ready to collaborate with Russia in those areas where Russia has globally competitive technologies. This much is evident from the participation of Roscosmos in the construction of South Korea’s Naro Space Center, the flight of a South Korean astronaut with two Russian cosmonauts in a Russian spacecraft, the launch of the Russia–South Korea Naro-1 (KSLV-1) launch vehicle, and the fact that South Korea imports Russian uranium for its nuclear power plants to meet over a third of its needs. Bilateral humanitarian ties are also being developed. South Korea is the only country in Northeast Asia that has a visa-free travel agreement with Russia.

During President Moon Jae-in’s state visit to Moscow in June 2018, the parties agreed to expand bilateral cooperation in the areas of civil aircraft building, automobile manufacturing, shipbuilding and the construction and modernization of shipyards in Russia. The parties intend to expand cooperation in space research, the exploration of the Northern Sea Route and the joint development of oil and gas fields. Concluding a Free Trade Agreement would be a landmark moment in the development of trade and economic cooperation.

As regards North Korea, Russia’s relations with the country were on a downturn in the 1990s. Vladimir Putin’s visit to Pyongyang in 2000, the signing of the Treaty on Friendship, Good-Neighbourly Relations and Cooperation in February 2000, and settling the issue of North Korea’s debt to Russia in 2012 all paved the way for the restoration a full-fledged partnership between Russia and North Korea. Such a development was intended to give a powerful impetus to trade and economic relations both in the Russia–North Korea bilateral format, and in a trilateral format with the participation of South Korea, thus contributing to building bridges in inter-Korean cooperation.

During the Russia–South Korea summit held in Moscow this past June, the two parties expressed interest in trilateral projects between Russia, South Korea and North Korea, such as: linking the Trans-Korean Main Line to the Trans-Siberian Railway; building a pipeline between Russia and North and South Korea; and connecting the power grids of the three countries. The problem is, however, that implementing these trilateral projects is currently hampered by sanctions imposed on Pyongyang due to its nuclear programme, as is the development of bilateral trade and economic cooperation between Russia and North Korea.

Further dialogue on the matter is expected at the Eastern Economic Forum in Vladivostok in September 2018, to which Vladimir Putin has invited the leaders of both Korean states.

***

The two Korean states are celebrating their 70 th anniversaries while gradually retreating from confrontation algorithms formed by the Cold War. It is in the interests of everyone that a reconciliation of the two Koreas is achieved and a solution to the nuclear problem on the Korean Peninsula is developed.

North and South Korea should become full-fledged members of the comprehensive security system in Northeast Asia.

First published in our partner RIAC

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East Asia

Freedom, Sovereign Debt, Generational Accounting and other Myths

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

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

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

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

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

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

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

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

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

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

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

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

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

An early version of this text appeared in China Daily

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Arrogance of force and hostages in US-China trade war

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

First published in our partner International Affairs

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Will China Save the Planet? Book Review

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Barbara Finamore has been involved in environmental policy in China for decades.  Her new book, Will China Save the Planet?,is a succinct report (120 pg.) on the short, yet promising history of China’s actions to address climate change and pollution.

Chapter 1 is about the recent global leadership role that China has taken in the fight against climate change.  At first, the PRC was hesitant to commit to specific pollution-reduction benchmarks.  After experiencing increasingly devastating bouts of industrial smog in the 1990s however, China began to take its environmental commitments more seriously.  It has set out to become the de facto leader in combatting climate change through ambitious domestic action and sponsoring international conferences.  The Trump Administration’s withdrawal from the Paris Climate Agreement has only furthered China’s dominance.

Chapters 2-4 give in-depth analysis on China’s efforts to wean itself off of coal, develop its renewable energy capacity and become a global leader in electric vehicle production.  China has long used coal to fuel its unprecedented rate of industrialization.  In recent years, it has pledged to wean itself off of coal dependency by enforcing coal plant efficiency standards, enacting a cap-and-trade program, managing grid output, promoting local politicians based on their success in implementing green policies and supporting green energy developments.  China is now home to many of the world’s top manufacturers of solar panels, wind turbines and commercial & private electric vehicles.

There is much to applaud China for in its efforts.  Finamore writes that, “After growing by an average of 10% annually from 2002-2012, China’s coal consumption leveled off in 2013 & decreased in each of the following three years… Largely because of the dip in China’s coal consumption, global CO2 emissions growth was basically flat between 2014-2016.”  By moving away from coal, China has been able to, “Every hour… erects a new wind turbine & installs enough solar panels to cover a soccer field.” As of last year, “Chinese solar manufacturers accounted for about 68% of global solar cell production & more than 70% of the world’s production of solar panels.”

Chapter 5 focuses on China’s mission to export its green initiatives around the world, particularly through its Belt and Road Initiative (BRI).  The BRI is shaping up to be the largest international infrastructure plan in history, investing trillions of dollars in 65 countries in Asia, Europe, Africa and the Middle East.  China thus has a golden chance to help much of the developing world to adopt clean energy goals and foster economic growth.  The Chinese government is encouraging its citizens to invest in renewable energy initiatives in the BRI countries by implementing a “green finance” system.  Through its pivotal role in the G20, China can also help to lead the developed world by spearheading reports and policies among the 20 member nations.

Barbara Finamore has written a highly readable and informative overview of China’s role in the global climate change battle.  She lists the Chinese government policies that have led the world’s largest nation to meet and exceed many of the green benchmarks that it set for itself.  It would have been helpful if Finamore had written more about China’s water instability and how that ties to the Tibetan occupation, as access to drinking water is one of the top environmental issues in the world today.  As a whole, Will China Save the Planet?is a good primer for environmental policy analysts and anyone else interested in studying feasible solutions to climate change, humanity’s greatest threat.

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