Connect with us

East Asia

Chinese Game: U.S. Losing Asia and Africa

Published

on

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

East Asia

Deeper meanings of the Hong Kong protests: Is China a gamechanger or yet another winner?

Anis H. Bajrektarevic

Published

on

Does our history only appear overheated, while it is essentially calmly predetermined? Is it directional or conceivable, dialectic and eclectic or cyclical, and therefore cynical? Surely, our history warns. Does it also provide for a hope? Hence, what is in front of us: destiny or future?

Theory loves to teach us that extensive debates on what kind of economic system is most conductive to human wellbeing is what consumed most of our civilizational vertical. However, our history has a different say: It seems that the manipulation of the global political economy – far more than the introduction of ideologies – is the dominant and arguably more durable way that human elites usually conspired to build or break civilizations, as planned projects. Somewhere down the process, it deceived us, becoming the self-entrapment. How?

One of the biggest (nearly schizophrenic) dilemmas of liberalism, ever since David Hume and Adam Smith, was an insight into reality: Whether the world is essentially Hobbesian or Kantian. As postulated, the main task of any liberal state is to enable and maintain wealth of its nation, which of course rests upon wealthy individuals inhabiting the particular state. That imperative brought about another dilemma: if wealthy individual, the state will rob you, but in absence of it, the pauperized masses will mob you.

The invisible hand of Smith’s followers have found the satisfactory answer – sovereign debt. That ‘invention’ meant: relatively strong central government of the state. Instead of popular control through the democratic checks-&-balance mechanism, such a state should be rather heavily indebted. Debt – firstly to local merchants, than to foreigners – is a far more powerful deterrent, as it resides outside the popular check domain.

With such a mixed blessing, no empire can easily demonetize its legitimacy, and abandon its hierarchical but invisible and unconstitutional controls. This is how a debtor empire was born. A blessing or totalitarian curse? Let us briefly examine it.

The Soviet Union – much as (the pre-Deng’s) China itself – was far more of a classic continental military empire (overtly brutal; rigid, authoritative, anti-individual, apparent, secretive), while the US was more a financial-trading empire (covertly coercive; hierarchical, yet asocial, exploitive, pervasive, polarizing). On opposite sides of the globe and cognition, to each other they remained enigmatic, mysterious and incalculable: Bear of permafrost vs. Fish of the warm seas. Sparta vs. Athens. Rome vs. Phoenicia… However, common for the both was a super-appetite for omnipresence. Along with the price to pay for it.

Consequently, the Soviets went bankrupt by mid 1980s – they cracked under its own weight, imperially overstretched. So did the Americans – the ‘white man burden’ fractured them already by the Vietnam war, with the Nixon shock only officializing it. However, the US imperium managed to survive and to outlive the Soviets. How?

The United States, with its financial capital (or an outfoxing illusion of it), evolved into a debtor empire through the Wall Street guaranties. Titanium-made Sputnik vs. gold mine of printed-paper… Nothing epitomizes this better than the words of the longest serving US Federal Reserve’s boss, Alan Greenspan, who famously quoted J.B. Connally to then French President Jacques Chirac: “True, the dollar is our currency, but your problem”. Hegemony vs. hegemoney.

House of Cards

Conventional economic theory teaches us that money is a universal equivalent to all goods. Historically, currencies were a space and time-related, to say locality-dependent. However, like no currency ever before, the US dollar became – past the WWII – the universal equivalent to all other moneys of the world. According to history of currencies, the core component of the non-precious metals’ money is a so-called promissory note – intangible belief that,by any given point in future, a particular shiny paper (self-styled as money) will be smoothly exchanged for real goods.

Thus, roughly speaking, money is nothing else but a civilizational construct about imagined/projected tomorrow – that the next day (which nobody has ever seen in the history of humankind, but everybody operates with) definitely comes (i), and that this tomorrow will certainly be a better day then our yesterday or even our today (ii).

This and similar types of collective constructs (horizontal and vertical) over our social contracts hold society together as much as its economy keeps it alive and evolving. Hence, it is money that powers economy, but our blind faith in constructed (imagined) tomorrows and its alleged certainty is what empowers money.

Clearly, the universal equivalent of all equivalents – the US dollar – follows the same pattern: Bold and widely accepted promise. What does the US dollar promise when there is no gold cover attached to it ever since the time of Nixon shock of 1971?

Pentagon promises that the oceanic sea-lanes will remain opened (read: controlled by the US Navy), pathways unhindered, and that the most traded world’s commodity – oil, will be delivered. So, it is not a crude or its delivery what is a cover to the US dollar – it is a promise that oil of tomorrow will be deliverable. That is a real might of the US dollar, which in return finances Pentagon’s massive expenditures and shoulders its supremacy.

Admired and feared, Pentagon further fans our planetary belief in tomorrow’s deliverability – if we only keep our faith in dollar (and hydrocarbons’ energized economy), and so on and on in perpetuated circle of mutual reinforcements.

These two pillars of the US might from the East coast (the US Treasury/Wall Street and Pentagon) together with the two pillars of the West coast – both financed and amplified by the US dollar, and spread through the open sea-routs (Silicone Valley and Hollywood), are an essence of the US posture.

This very nature of power explains why the Americans have missed to take the mankind into completely other direction; towards the non-confrontational, decarbonized, de-monetized/de-financialized and de-psychologized, the self-realizing and green humankind. In short, to turn history into a moral success story. They had such a chance when, past the Gorbachev’s unconditional surrender of the Soviet bloc, and the Deng’s Copernicus-shift of China, the US – unconstrained as a lonely superpower – solely dictated terms of reference; our common destiny and direction/s to our future/s.

Winner is rarely a game-changer

Sadly enough, that was not the first missed opportunity for the US to soften and delay its forthcoming, imminent multidimensional imperial retreat. The very epilogue of the WWII meant a full security guaranty for the US: Geo-economically – 54% of anything manufactured in the world was carrying the Made in USA label, and geostrategically – the US had uninterruptedly enjoyed nearly a decade of the ‘nuclear monopoly’. Up to this very day, the US scores the biggest number of N-tests conducted, the largest stockpile of nuclear weaponry, and it represents the only power ever deploying this ‘ultimate weapon’ on other nation. To complete the irony, Americans enjoy geographic advantage like no other empire before. Save the US, as Ikenberry notes: “…every major power in the world lives in a crowded geopolitical neighborhood where shifts in power routinely provoke counterbalancing”. Look the map, at Russia or China and their packed surroundings. The US is blessed with its insular position, by neighboring oceans. All that should harbor tranquility, peace and prosperity, foresightedness.

Why the lonely might, an empire by invitation did not evolve into empire of relaxation, a generator of harmony? Why does it hold (extra-judicially) captive more political prisoners on Cuban soil than the badmouthed Cuban regime has ever had? Why does it remain obsessed with armament for at home and abroad? Why existential anxieties for at home and security challenges for abroad ? (Eg. 78% of all weaponry at disposal in the wider MENA theater is manufactured in the US, while domestically Americans – only for their civilian purpose – have 1,2 small arms pieces per capita.)

Why the fall of Berlin Wall 30 years ago marked a beginning of decades of stagnant or failing incomes in the US (and elsewhere in the OECD world) coupled with alarming inequalities. What are we talking about here; the inadequate intensity of our tireless confrontational push or about the false course of our civilizational direction? 

Indeed, no successful and enduring empire does merely rely on coercion, be it abroad or at home. The grand design of every empire in past rested on a skillful calibration between obedience and initiative – at home, and between bandwagoning and engagement – abroad. In XXI century, one wins when one convinces not when one coerces. Hence, if unable to escape its inner logics and deeply-rooted appeal of confrontational nostalgia, the prevailing archrival is only a winner, rarely a game-changer.

To sum up; After the collapse of the Soviet Union, Americans accelerated expansion while waiting for (real or imagined) adversaries to further decline, ‘liberalize’ and bandwagon behind the US. Expansion is the path to security dictatum only exacerbated the problems afflicting the Pax Americana. That is how the capability of the US to maintain its order started to erode faster than the capacity of its opponents to challenge it. A classical imperial self-entrapment!!

The repeated failure to notice and recalibrate its imperial retreat brought the painful hangovers to Washington by the last presidential elections. Inability to manage the rising costs of sustaining the imperial order only increased the domestic popular revolt and political pressure to abandon its ‘mission’ altogether. Perfectly hitting the target to miss everything else …

Hence, Americans are not fixing the world any more. They are only managing its decline. Look at their (winner) footprint in former Yugoslavia, Afghanistan, Iraq, Libya and Syria – to mention but a few.

When the Soviets lost their own indigenous ideological matrix and maverick confrontational stance, and when the US dominated West missed to triumph although winning the Cold War, how to expect from the imitator to score the lasting moral or even amomentary economic victory?

Neither more confrontation and more carbons nor more weaponized trade and traded weapons will save our day. It failed in past, it will fail again any given day.

Interestingly, China opposed the I World, left the II in rift, and ever since Bandung of 1955 it neither won over nor (truly) joined the III Way. Today, many see it as a main contestant. But, where is a lasting success?

(The Belt and Road Initiative (BRI) is what the most attribute as an instrument of the Chinese planetary posture. Chinese leaders promised massive infrastructure projects all around by burning trillions of dollars. Still, numbers are more moderate. As the recent The II BRI Summit has shown, so far, Chinese companies had invested $90 worldwide. Seems, neither People’s Republic is as rich as many (wish to) think nor it will be able to finance its promised projects without seeking for a global private capital. Such a capital –if ever – will not flow without conditionalities. The Asian Infrastructure Investment Bank (AIIB) and the BRICS or ‘New Development’ – Bank have some $150 billion at hand, and the Silk Road Infrastructure Fund (SRIF) has up to $40 billion. Chinese state and semi-private companies can access – according to the OECD estimates – just another $600 billion (much of it tight) from the home, state-controlled financial sector. That means that China runs short on the BRI deliveries worldwide. Ergo, either bad news to the (BRI) world or the conditionalities’ constrained China.)

Greening international relations along with a greening of economy – geopolitical and environmental understanding, de-acidification and relaxation is the only way out.

That necessitates both at once: less confrontation over the art-of-day technology and their monopolies’ redistribution (as preached by the Sino-American high priests of globalization) as well as the resolute work on the so-called Tesla-ian implosive/fusion-holistic systems(including free-energy technologies; carbon-sequestration; antigravity and self-navigational solutions; bioinformatics and nanorobotics). More of initiative than of obedience (including more public control over data hoovering). More effort to excellence (creation) than struggle for preeminence (partition).

Finally, no global leader has ever in history emerged from a shaky and distrustful neighborhood, or by offering a little bit more of the same in lieu of an innovative technological advancement. (Eg. many see the Chinese 5G as an illiberal innovation, which may end up servicing authoritarianism, anywhere. And indeed, the AI deep learning inspired by biological neurons (neural science) including its three methods: supervised, unsupervised and reinforced learning can end up used for the digital authoritarianism, predictive policing and manufactured social governance based on the bonus-malus behavioral social credits.)

Ergo, it all starts from within, from at home. Without support from a home base (including that of Hong Kong, Xinjiang and Tibet), there is no game changer. China’s home is Asia. Its size and its centrality along with its impressive output is constraining it enough.

Hence, it is not only a new, non-imitative, turn of technology what is needed. Without truly and sincerely embracing mechanisms such as the NaM, ASEAN and SAARC (eventually even the OSCE) and the main champions of multilateralism in Asia, those being India Indonesia and Japan first of all, China has no future of what is planetary awaited – the third force, a game-changer, lasting visionary and trusted global leader.

Post Scriptum:

To varying degrees, but all throughout a premodern and modern history, nearly every world’s major foreign policy originator was dependent (and still depends) on what happens in, and to, Russia. It is not only a size, but also centrality of Russia that matters. It is as much (if not even more), as it is an omnipresence of the US and as it is a hyper production of the PR China.

Ergo, it is an uninterrupted flow of manufactured goods to the whole world, it is balancing of the oversized and centrally positioned one, and it is the ability to controllably destruct the way in and insert itself of the peripheral one. The oscillatory interplay of these three is what characterizes our days.

Continue Reading

East Asia

Uyghur asylum seeker puts international community on the spot

Dr. James M. Dorsey

Published

on

Ablikim Yusuf, a 53-year old Uyghur Muslim seeking a safe haven from potential Chinese persecution, landed this week in the United States, his new home.

But Mr. Yusuf’s perilous search that took him from Pakistan to Qatar to Bosnia Herzegovina where was refused entry and back to Qatar highlighted China’s inability to enforce its depiction of the brutal clampdown on Turkic Muslims in its troubled, north-western province of Xinjiang as a purely domestic matter.

Mr. Yusuf’s case also spotlighted the risk of increased mass migration in a world in which ethnic and religious minorities increasingly feel existentially threatened by civilizationalist policies pursued by illiberal and authoritarian leaders as well as supremacists, racists and far-right nationalist groups.

By choosing Qatar Airways and making Doha his first point of landing after leaving his residence in Pakistan, Mr. Yusuf further underscored the fragility of Muslim acquiescence in the Chinese clampdown and called into question application of Qatar’s asylum law. With the adoption of the law, Qatar last year became the first Arab state to legalize asylum.

While Mr. Yusuf is fortunate to have ended his ordeal with his arrival in the United States, his case accentuated the hypocrisy of the Trump administration that has demonized migrants and refugees and “weaponized” US human rights policy.

Mr. Yusuf’s plight serves the United States as it fights an escalating trade war with China and has made the clampdown in Xinjiang one of the opportunistically selected cases of human rights violations it is willing to emphasize.

Mr Yusuf put Qatar and the international community on the spot when he last weekend posted online a mobile phone video pleading for help hours before he was slated to be deported from Doha’s Hamad International Airport to Beijing.

The plea generated thousands of retweets by Uyghur activists and won him assistance from an American human rights lawyer and ultimately asylum in the US.

If deported to China, Mr. Yusuf would have risked being incarcerated in a re-education camp which has been an involuntary home for an estimated one million Uyghurs in China as part of what amounts to the worst assault on a faith in recent history.

China said last month that the majority of the detainees in what it describes as vocational training facilities had been released and “returned to society” but independent observers say there is no evidence that the camps are being emptied.

Mr. Yusuf decided to leave his home in Pakistan for safer pastures after Pakistan became one of up to 50 countries that signed a letter in support of the clampdown.

Concerned that Pakistan, the largest beneficiary of Chinese Belt and Road-related investment, could deport its Uyghur residents, Mr. Yusuf travelled on a Chinese travel document rather than a passport that was valid only for travel to China. China’s issuance of such documents is designed to force Uyghurs to return.

The travel document provided cover for Qatar’s initial decision to return him to China rather than potentially spark Chinese ire by granting him asylum. International pressure persuaded Qatar to give Mr. Yusuf the opportunity to find a country that would accept him.

China’s clampdown in Xinjiang is but the sharp edge of a global trend fuelled by the rise of leaders across the globe in countries ranging from the United States to China, Russia, India, Hungary, Turkey and Myanmar who think in civilizational terms, undermine minority rights, wittingly or unwittingly legitimize violence, and risk persuading large population groups to migrate in search of safer pastures.

Hate crimes have gripped the United States with critics of President Donald J. Trump charging, despite his explicit condemnation this week of white supremacism, that his hardline attitude and language when it comes to migrants and refugees has created an enabling environment.

Violence against Muslims in India, home to the world’s second largest Muslim community, has increased dramatically with 90 percent of religious hate crimes in the last decade having occurred since Narendra Modi became prime minister.

Some 750,000 Rohingya linger in Bangladeshi refugee camps after fleeing persecution in Myanmar while Islamophobia has become part of US, European and Chinese discourse and Jews in Europe fear a new wave of anti-Semitism.

Italy took efforts to counter migration that are likely to aggravate rather than alleviate a crisis a step further by adopting a law that would slap fines of up to US$1.12 million on those seeking to rescue migrants adrift at sea.

The Chinese clampdown that bars most Uyghurs from travel and seeks to force those abroad to return has so far spared the world yet another stream of people desperate to find a secure and safe home. The risk of an eventual Uyghur exodus remains with the fallout of the Chinese re-education effort yet to be seen.

Mr. Yusuf could well prove to be not only the tip of the Uyghur iceberg but of a future global crisis as a result of an international community that not only increasingly has turned its back on those in need but also pursues exclusionary rather than inclusionary policies.

Continue Reading

East Asia

China’s risky bets

Dr. James M. Dorsey

Published

on

China’s infrastructure and energy driven US$1 trillion Belt and Road initiative involves risky bets across a swath of land populated by often illiberal or autocratic governments exercising power without independent checks and balances.

Seeking to reduce risk, China is bumping up against the limits of its own long-standing foreign and defence policy principles, foremost among which its insistence on non-interference in the domestic affairs of others, the equivalent of the United States’ preference for stability rather than political change.

If popular revolts in Algeria and Sudan as well as smaller, issues-oriented protests elsewhere in the Middle East and North Africa are anything to go by, China appears to be betting against the odds.

Anti-corruption sentiment fuelled the 2011 popular Arab revolts that toppled the leaders of Tunisia, Egypt, Libya and Yemen and are at the root of current anti-government protests across the globe in countries as far flung as Brazil, Haiti, Jamaica, Puerto Rico, Russia, Zambia, the Czech Republic, Albania and Romania

China’s risks were evident in the wake of the fall in 2011 of Col. Moammar Gaddafi when the post-revolt Libyan authorities advised China that it would be low on the totem pole as a result of its support of the ancien regime.

The risks are also evident with Baloch militants targeting Chinese assets and personnel in Pakistan.

To minimize the risk and expand its aggressive domestic anti-graft campaign, China’s top anti-corruption body, the Communist party’s Central Commission for Discipline Inspection (CCDI), is embedding inspectors in Belt and Road projects, who will be based in recipient countries.

The move helps China counter allegations that it exploits corruption in recipient Belt and Road countries to further its objectives.

Anti-corruption is a signature policy of president Xi Jinping and has allowed him to purge senior Chinese leaders as well as tens of thousands of low-level bureaucrats.

The CCDI is building on the success of a pilot project in Laos where it embedded in late 2017 inspectors in a US$6 billion railway project being built by state-owned China Railway Group. The anti-graft officials, working with the Chinese company, established a joint inspection team with their Laotian counterpart.

The question is whether the anti-corruption effort in countries like Laos or Central Asian nations that consistently rank in the bottom half of Transparency International’s corruption index will bump up against China’s non-interference principle.

Or in other words, can China successfully guard against corruption in Belt and Road projects without pressuring recipient countries to adopt broader transparency and anti-corruption measures?

How can you strike hard on corruption here at home and give a free hand to Chinese people and business groups [that are] reckless abroad?” CCDI’s director-general for international co-operation La Yifan asked in a Financial Times interview.

Mr. La said China had organized seminars with more than 30 countries to link up anti-corruption regulators. “That is my dream, that we create a network of law enforcement of all these Belt and Road countries,” he said.

Imposing transparency and anti-corruption in Belt and Road partners would be the equivalent of all kinds of environmental, safety and human rights criteria that the United States haphazardly and opportunistically maintains in dealings with foreign countries that have been severely criticized by China.

China has long prided itself on what it terms win-win economic situations in which it imposes commercial terms that often primarily benefit the People’s Republic.

The terms, coupled with the clampdown on Turkic Muslims in China’s province of Xinjiang, has fuelled anti-Chinese sentiment in Turkey and Central Asia with their close ethnic and cultural ties to the troubled Chinese region.

Turkish officials highlighted these sensitivities by denying Chinese media reports that president Recep Tayyip Erdogan had praised the success of Beijing’s brutal approach in Xinjiang during a recent visit to China.

Muslim nations have largely remained silent about the clampdown that amounts to the most frontal assault on a faith in recent history or in some instances even tacitly endorsed it.

In the absence of democracy, “governments can manage their pro-Beijing stance without informing their public, but a pro-Beijing policy over the Uyghur issue can barely be sustained in Turkey. Turkey is still a functioning democracy and total control of the public is not possible. Besides, there is a very strong Uyghur lobby and public sentiment towards the Uyghurs in Turkey,” said Turkish Centre for Asia-Pacific Studies director Selcuk Colakoglu.

Taking its anti-corruption campaign global, raises the broader question of whether it would threaten a pillar of autocracy that China’s non-interference principle has de facto sought to perpetuate.

Political scientists Alexander Cooley and John Heathershaw argue that what they call the instruments of global authoritarianism — an army of largely Western bankers, lawyers, brokers and intermediaries that park illicitly gained monies in off-shore accounts and manage the investment of those funds – help keep autocrats in power.

The success of the globalization of China’s anti-corruption effort as well as its campaign to significantly reduce graft at home, would establish autocrats’ ability to satisfactorily deliver public goods and services alongside brute power as the cornerstone of their sustainability.

In doing so, it would give greater meaning to China’s assertion that it does not want to fundamentally alter the established multi-lateral world order but rather make it more equitable and more a reflection of a world that is multi- not unipolar.

It would also cement China’s model of economic reform and state capitalism without political liberalization as the example autocratic and authoritarian regimes want to emulate even if the jury is out on whether autocrats can remain relatively clean without a system of independent checks and balances.

Continue Reading

Latest

Southeast Asia1 hour ago

In Myanmar, Better Oversight of Forests a Vital Step in Transition to Rule of Law

Authors: Art Blundell and Khin Saw Htay For the first time, the Myanmar Extractive Industries Transparency Initiative (MEITI) has opened...

Americas3 hours ago

Presidential elections – 2020, or does Trump have “federal reserve”?

On July 31, the US Federal Reserve’s Open Market Committee cut interest rates – the first such move in 11...

Russia6 hours ago

Short Letter vs. Long Telegram: US Ambassador Huntsman Departs Moscow

The resignation of US ambassador to Russia Jon Huntsman is a good occasion to take stock of one of the...

Economy8 hours ago

Internship tips from an intern who became an owner and CEO

Internships can be a valuable opportunity to start your full-time working career, and change your life. Fatih Ozmen went from...

South Asia10 hours ago

Abrogation of Article 370 and Indian Plan for Plebiscite in Jammu & Kashmir

Since 2014 India is being ruled by a Hindu ultra-nationalist party of Bhartiya Jannta Party (BJP) and extremist Narendra Modi...

Africa12 hours ago

Addressing Economic Challenges in Africa Through Deep Investments

The African continent comprises a diverse collection of countries, each with its own set of challenges. The governance of individual...

Green Planet14 hours ago

The Threat to Life from Ocean Microplastics

Authors: Meena Miriam Yust and Arshad Khan When Chelsea Rochman at the University of Toronto and colleagues began their study on medakas...

Trending

Copyright © 2019 Modern Diplomacy