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China Vision: China’s Crusade to Create a World in its Own Image

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In the wake of Chinese leader Xi Xinping’s moves to make himself ruler for life, everyone is wondering about his government’s ambitions for its role in the world.  Daniel Wagner has written about what the trends indicate in China Vision: China’s Crusade to Create A World in its Own Image.

The book notes the paradox that China is in regards to investment.  The world’s 2nd largest economy continues to accept billions of dollars in development loans from banks like the World Bank and Asian Development Bank.  Meanwhile, Chinese state banks are loaning trillions of dollars to countries around the world.  Chinese entrepreneurs are feverishly setting up businesses abroad and purchasing foreign companies and real estate. If a foreigner wants to invest in China though, they must accept ownership stake limitations and obey rules that explicitly make them less competitive.  In regards to domestic investment, Wagner argues that China invests way too much on grand public projects, like apartment blocs that remain largely vacant, and not enough on small-midsized businesses.  One of these days (the next global recession?), the chickens will come home to roost and China will have to re-evaluate its blank-check policy.

Much of the book focuses on China’s role in foreign diplomacy and commerce.  The fledgling superpower is in the process of spending trillions of dollars on loans to the developing world, particularly through its Asia-oriented Belt and Road Initiative.  These no-strings attached loans give China enormous power over many of the poorest countries in the world.  Many people, like former Maldivian PM Mohamed Nasheed, have outright accused China of imperialist behavior.  The author writes that, “Kenya was to be forced to relinquish control of its largest and most lucrative port in Mombasa to Chinese control as a result of Nairobi’s inability to repay its debts to Beijing.”  China also owns ports in locales as diverse as Djibouti City and Zeebrugge, Belgium.  Chinese firms are likewise emulating some neo-colonial tendencies.  For instance, Wagner writes that, “Fewer than half of these [African-based Chinese] firms sourced inputs or had African management.”  Controversial Chinese real estate projects like Forest City, Malaysia are arguably examples of literal colonialism.

Through this strategy of buying friends and building a global network of ports, China is strengthening its impunity as a Top 3 naval power.  Increasingly, China is treating the South China Sea as its private fiefdom by ignoring credible territorial claims of the Spratly Islands and Scarborough Shoal by the Philippines, Indonesia, Japan, Brunei, Malaysia and Vietnam.  Most disturbing of all is Xi’s recent verbal aggression towards Taiwan.  By buying friends, China can mute criticisms of this military aggression in the UN and isolate foes like Taiwan (only 19 countries have diplomatic relations with it).  With a rapidly expanding fleet of sea craft, the People’s Liberation Army Navy is better equipped than ever to project hard power via all of China’s ports, from off the coast of the Philippines to Belgium…. On this dire note, I wish Wagner had written more about the budding conflict between China and the other 1B-person country in the world, India.  I predict that the dichotomy between democratic India and totalitarian China will determine the future of humanity.  Seeing as India & China (and China’s close ally Pakistan) all possess thermonuclear weapons and have recent military skirmishes with each other, one can only hope that the Tiger and Dragon don’t initiate WWIII squabbling over a sleepy locale like Kashmir or Nepal.

In the final section of the book, Wagner writes about China’s dominance in the virtual sphere.  Chinese tech companies like Baidu, Alibaba and Tencent are rapidly catching up and even beating Silicon Valley in terms of traffic, profitability and innovation (most importantly, AI).  China has also become the de facto global leader in green technology.  China’s blank-check philosophy funds these rapid advancements.  A lot of this apparent innovation, however, is fuelled by corporate espionage.  For the past few decades, Chinese firms (often with official backing) have been using spies and hacking to steal blueprints and thus reverse engineer inventions.  Ironically, these knock-offs are oftentimes sold to the US government, which creates a huge security risk.  In many cases, Western companies willingly share confidential data with China in order to be granted access to the Chinese market.

China’s running racket of stealing IP and personal user data from US companies that choose to operate in China demonstrates the importance of government regulation… In this case regarding national security and user privacy protection.  Ironically, China enforces data encryption and other cybersecurity measures through regulations like the 2017 Cybersecurity Law.  The willingness of Western companies to literally sell themselves out to China in the frenzied hope of making a quick buck in the world’s largest market is textbook junkie-mentality.  These free market free-basers expose their fundamental flaw in the face of China’s system of state capitalism.  By ceding responsibility of investment from the government to the private sector solely, countries like the US are being vastly outspent by China in everything from space travel to quantum computing research.  As economists like Michel Aglietta and upstart politicians like Alexandria Ocasio-Cortez point out, the state must be responsible for picking up the slack when the free market fails to focus on important long term projects, like a Green New Deal (China already has its own publically funded version of the GND).

China Vision is a good account of the Chinese Communist Party’s domestic heavy-handedness and foreign diplomacy-via-blank-check.  The two are interconnected, as China’s crackdown on internal dissidents informs how it treats foreign countries and human rights activists who dare to oppose it.  Through China’s Belt and Road Initiative of loaning billions of infrastructure dollars to developing nations, it can control them through a carrot-and-stick approach.  China’s spy state apparatus is also being used to sabotage foreign humanitarian organizations, religious groups, governments and companies.  The CCP may soon export its surveillance state blueprint to other interested authoritarian states, setting the stage for a cold war between China and its client dictatorships & the Western democracies.  The People’s Liberation Army is preparing for this possibility with a huge naval buildup in the contested South China Sea, aided by all of the “civilian” ports that it’s building there under the auspices of the BRI.  Daniel Wagner’s book does a good job of explaining these geopolitical trends in a concise and even-handed way.  He explains how colonialism and the Cold War helped to shape China’s cynical outlook on the world and doesn’t exaggerate China’s capabilities.  Anyone in politics, tech, economics or the NGO sphere will learn a lot from this book.

Russell Whitehouse is Executive Editor at IntPolicyDigest. He’s also a freelance social media manager/producer, 2016 Iowa Caucus volunteer and a policy essayist.

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East Asia

Standing up to China: Czech mayor sets a high bar

Dr. James M. Dorsey

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A Czech mayor’s refusal to endorse Beijing’s One China policy potentially sets a high bar as Western powers grapple with how to respond to allegations of excessive use of violence by police against Hong Kong protesters and the implications of leaked documents detailing a brutal crackdown in China’s north-western province of Xinjiang.

Prague mayor Zdenek Hrib rejected a sister city agreement between the Czech capital and Beijing in late October because it included a clause endorsing the One China policy, which implicitly recognizes China’s sovereignty over Taiwan, as well as Hong Kong and Tibet.

Mr. Hrib argued that the agreement was a cultural arrangement and not designed to address foreign policy issues that were the prerogative of the national government.

The mayor’s stance has since taken on added significance against the backdrop of US President Donald J. Trump’s signing of legislation that allows for the sanctioning of Hong Kong officials, embarrassing Communist party leaks that document repression in Xinjiang, the election of a new Sri Lankan government that intends to adopt a tougher policy towards China, and simmering anti-Chinese sentiment in Central Asia and beyond.

Mr. Hrib’s rejection was in fact a reflection of anti-Chinese sentiment in the Czech Republic as well as opposition to the pro-China policy adopted by Czech president Milos Zeman.

To be sure, Mr. Hrib, a 38-year old medical doctor who interned in Taiwan, was shouldering little political or economic risk given Czech public anger at China’s failure to fulfil promises of significant investment in the country.

On the contrary, Mr. Hrib, since becoming mayor in mid-2018, appears to have made it his pastime to put Mr. Zeman on the spot by poking a finger at China.

Mr. Hrib visited Taiwan in the first six months of his mayorship, flew the Tibetan flag over Prague’s city hall, and rejected a request by the Chinese ambassador at a meeting with foreign diplomats to send Taiwanese representatives out of the room.

Beijing’s cancellation of a tour of China by the Prague Philharmonic Orchestra in response to Mr. Hrib’s provocations forced Mr. Zeman to describe the Chinese retaliation as “excessive” and his  foreign minister, Tomas Petricek, to declare that “diplomacy is not conducted with threats.”

Perhaps more importantly, M. Hrib was taking a stand based on principles and values rather than interests. In doing so, he was challenging the new normal of world leaders flagrantly ignoring international law to operate on the principle of might is right.

“Our conscience is not for sale,” said Michaela Krausova, a leading member of the governing Pirate Party of the Prague city council. Ms. Krausova and Mr. Hrib’s party was founded to shake up Czech politics with its insistence on the safeguarding of civil liberties and political accountability and transparency.

While couched in terms of principle, Mr. Hrib’s stand strokes with newly installed Sri Lankan president Gotabaya Rajapaksa’s intention to wrest back control from China of the island’s strategic Hambantota port that serves key shipping lanes between Europe and Asia.

Hambantota became a symbol of what some critics have charged is Chinese debt trap diplomacy after Sri Lanka was forced to hand over the port to China in 2017 on a 99-year lease because the government was unable to repay loans taken to build it.

“I believe that the Sri Lankan government must have control of all strategically important projects like Hambantota. The next generation will curse our generation for giving away precious assets otherwise,” Mr. Rajapaksa said.

Fears of a debt trap coupled with the crackdown on Turkic Muslims in Xinjiang, which targets not only Uighurs, but also groups that trace their roots to Central Asian countries, have fuelled anti-Chinese sentiment in Kyrgyzstan, Tajikistan and Kazakhstan.

“Given that China is likely to continue to expand its presence, further irritating local publics, the temptation of opposition groups to exploit such anger will only grow. If that happens…the anti-Chinese demonstrations that have taken place to date will be only the prelude to a situation that could easily spiral out of control, ethnicizing politics in these countries still further,” said Central Asia scholar Paul Goble.

Beyond Xinjiang, anti-Chinese sentiment in Central Asia is fuelled by some of the same drivers that inform Czech attitudes towards China.

The shared drivers include unfulfilled promises, idle incomplete Chinese-funded infrastructure projects, widespread corruption associated with Chinese funding, and the influx of Chinese labour and materials at the expense of the local work force and manufacturers.

Beyond Xinjiang, Central Asians worry about potential debt traps. The Washington-based Center for Global Development listed last year two Central Asian nations, Kyrgyzstan and Tajikistan, as risking China-related “debt distress.”

Warned China and Central Asia scholar Ayjaz Wani: “Chinese principles in Central Asia are hegemonic. China has always interacted with Central Asian states without regarding their cultural identities, but according to its own vested interests… However, the ongoing anti-China sentiments may be coming to a tipping point.

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Old wine in new bottles: Chinese containment policy in South Asia

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A lot of discussion in international relations scholarship is concentrated upon how US maximizing its security presence in the Asia-Pacific region. It is trying to contain, growing Chinese Influence to protect its national interest.It was described by former US President Barack Obama as a pivot Asia policy. But in the case of South Asia, United States is strengthening its ties with India to boost it as a force to contain Chinese emerging influence. It was termed by John J Mearsheimer as buck-passing in which a world superpower will give power and authority to another state to try to contain the influence of an emerging world hegemon. The Indo-US nuclear deal and former President Barack Obama’s remarks about the inclusion of India inthe United Nations Security council demonstrates that the United States is helping India to rise as the regional hegemon. India considers itself as an important actor at international level.It is increasing its political clout internationally but in South Asia, it can face a new kind of isolation. This is evident from the three recent events that occurred in a span of only 10 days in the first half of October

On 07th October Pakistan’s Prime Minister Imran Khan visited China with high-level delegation. He met there with Chinese President Xi Jinping and other important officials, it was his third visit to China since he came into power. During the meeting, both leaders, Imran Khan and Xi Jinping, discussed strengthening bilateral relations which are already at a higher level in terms of military and economic partnership. China is already working on a project to invest more than $50 billion under the name of China Pakistan Economic corridor let alone the cooperation on strategic and political issues. During the course of the visit, officials from both sides discussed Free Trade agreement which will be helpful in solving the problem of trade deficit for Pakistan. Total trade volume between China and Pakistan is around $15 billion in which Chinese export to Pakistan is of 13 billion. This Free Trade Agreement will open up about 90% of the Chinese market to Pakistan and will reduce trade deficit. During his meeting with Imran Khan, Xi Jinping accepted Kashmir as a disputed region and asked both parties to solve it through peaceful means.

All this happened just a few days before the visit of Chinese President Xi Jinping to India.Although both countries have made some progress on economy-related issues, no concrete efforts have been made to solve more radical issues like Indo-China border dispute in the northern Himalayan region. However more astonishing for India was that Xi Jinping visited Nepal after India. Nepal is a landlocked country crammed between two South Asia giants India and China. India is present on three sides of Nepal and considers it as its backyard. Both countries did have very solid relations and 60% of total Nepalese trade is done with India. In 2015 when Nepal adopted new constitution, relations between both countries soured. Although it was the internal matter of Nepal, India put an unofficial blockade for Nepal, which stopped all the supplies including food and medicine. Blockade continued for more than two months and it created a severe crisis because Nepal was already damaged by a strong earthquake in early 2015 in which more than 9000 people died. This blocked proved decisive in changing behavior of Nepalese leadership though they were complaining of Indian hegemonic role for many years. Nepal turned toward China for their needs. China also responded in a very positive way. Besides reconstructing earthquake effected areas, China also provided 1.03 million liters of fuel. In 2017 Nepal signed China’s Belt and Road initiative and pledged to construct a railway line which will connect China with Nepal directly. This initiated a new beginning in China-Nepal relations.

When Xi Jinping arrived at Katmandu, China by this time was thelargest foreign direct investor in Nepal.It was the first visit by any Chinese president in the last 23 years.During the course of his visit, 18 agreements were signed between Nepal and China, including a railway link between China and Nepal.

These three important tours in less than ten days present the new geopolitical reality of the region. Although the Chinese president visited India but this visit was sandwiched between Imran Khan’s visit to China and Xi Jinping’s visit to Nepal. Pakistan is an arch-rival of India in South Asia and Nepal which historically remained in the Indian sphere of influence,  is slowly slipping away from it.it clearly demonstrates containment policy by China in which China is progressively growing its influence in South Asian states. The Story does not end with Pakistan and Nepal but other South Asian states like Bangladesh and Sri Lanka now also have very strong ties with China.it represents in a new normal situation in which South Asian region is no longer dominated by India. Though India is showing to the world that it is solely protecting peace and stability in the region but reality has changed In fact South Asian states consider it as dominating power evident from its relation with Pakistan and blockade of Nepal. With growing Chinese influence in South Asia containment of India is now very much a reality.

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How Australia is becoming China’s Australia

Sisir Devkota

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If it were not for China, Australia’s population inroad scheme would take a serious hit. Out of more than 0.7 million international students, more than 30% Chinese are pursuing degrees in universities. Australia lives along the values of  the Western culture, but when it comes to its economy, rather dishonourably; it has had to lean towards the East. Chinese consumerism compensates for a healthy Australian economy and while it stands stronger on its democratic values, Australia, now faces a paradoxical relationship with the Asian hegemon. For instance, it is quietly ignoring the protests in Hong Kong. During recent elections, the Australian Prime Minister was mocked on WeChat; his funny nuances were subject to ridicule in the Chinese social media.

Now, Australia is facing the task. It is fighting a battle to save its identity against a consumer band, governed by communist policies. China’s message is clear; an interference of any sort is not welcome, else the consequences are going to be economical. Emancipated Chinese students in Australia have been protesting against the government backlash in Hong Kong. Resultantly, back home in China, apartments were raided and their parents taught the lesson of conformity. A lesson of nationalism that has blossomed outside its territories. Australia is swallowing up the hypocrisy. On its own land, it cannot protect the values of freedom and democracy.

Wang LiQiang or as he would like to be known as “William”, took to the Australian authorities for his involvement in spying activities. In his own admission, William was conducting intelligence operations and most significantly, assassinations on Australian soil. William is only one among high profile spies that have been operating in Australia. Ironically, his testament sufficiently reflects the Australian attitude towards Chinese interference, which has essentially been negligent and non-conversational. Notably, William’s particular mention about operating a system of political donation will nevertheless disturb Australian administrators. They will realize that it is only about time when China will explicitly begin to reassert its influence. The police did not find Wang Li Qiang; instead, he volunteered to surrender. Especially, coming from a senior Chinese operative, the message could not be clearer.

On the outset, China and Australia maintain a well-documented “good relationship”. However, administrative hierarchies in Canberra are also accused of implying a very positive attitude towards presenting and defending bilateral ties. As much as economic interests have motivated the Australian behaviour of non-acceptance, politicians do not shy away from painting an over simplified picture of Chinese problems that are realistically, complex in nature. As Prime Minister Scott Morrison handled the allegations of a Chinese backed ring that was trying to plot a spy in the parliament; the government has tried too hard to overlook the obvious. Mr. Morrison urged his citizens to not draw anxious conclusions, instead; he suggested that Australia would need to be vigilant from the threats that it faced more broadly. The substitutability of discourse that is apparent in Australian politics, marks a rather gifted trade-off for China and its actions. Andrew Hastie, parliamentary head of intelligence and security, claimed that such incidents did not surprise him. As more evidences would suggest, Chinese interference was knocking at the doors.

In terms of China, there are two faces of Australian political rhetoric. One that is motivated by the larger interests in the administrative chairs of governance, overlooking the infiltration for personal benefits. Secondly, the critiques emanating from opposition politicians and the likes of intelligence chiefs, for instance ASIO’s former Directorate General, Duncan Lewis, warned that China would take over Australia in a matter of time. Elsewhere in the borders of the communist giant, two Australian MP’s were denied travel entry, citing largely undetermined reasons. With a population of merely 25 million inhabitants, 1.8 million Chinese students have migrated to Australia for education. The dragon is marching towards the continent, in a first, the troops are ready on site.

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