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China’s great geostrategy for trade and defense

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The primary policy line of the People’s Republic of China, above all at sea level, is to defend its strategic and military interests, but anyway without undermining the trade routes and economic relations between China and its neighbouring countries.

 Just think about the Spratly issue, but also about the Chinese position on the ownership and nationality of the Senkaku Islands, as well as about the pressure made on China by India in 2017 to block the road that China had planned and designed on the border with Bhutan.

 From this viewpoint, China’s tensions in its neighbouring countries have immediately affected Japan, the Philippines, Malaysia and Vietnam.

 We should also recall, however, the naval confrontation with the United States in May 2009, especially with the USNS Impeccable and Victorious, for the right to operate in the 200 nautical miles off the Chinese Special Economic Zones.

 The United States does not like at all China’s protection of its regional seas, but it will be hard to change China’s mechanism of full protection of its coasts, which partly inhibits the use of old and traditional checkpoints, from Malacca to the Paracel and Ryuku Islands – all areas in which the United States could impose a blockade on the  trade and military flows of China’s vessels.

 This is still the first goal of China’s regional naval security.

 This is one of the primary strategic features of the Belt and Road Initiative, i.e. to get out of the Eastern maritime region and, hence, credibly offset the inevitable imbalance of the Chinese strategic formula on its regional seas with a significant geo-economic presence on Central Asia’s Heartland.

 As well as to provide China with a possibility of military (but also geo-economic) countermove capable of blocking the opponent on the sea or, alone, on its land borders.

 Therefore the aim pursued by China is its full security and absolute freedom of manoeuvre, within the “first circle” of peripheral islands, but with the possibility of projecting a significant interdiction power beyond this limit.

 One of the essential strategic meanings of President Xi Jinping’s Belt and Road Initiative is that, at geo-financial and economic levels, the Chinese leaders are well aware that the global financial crises – the past ones, but also those looming large – make the Chinese economy too vulnerable to global flows.

  This is even more severe if you have planned a neo-mercantilist and export-oriented economic development, as the Chinese leaders have done since Deng Xiaoping’s Four Modernizations.

 At that time there was no other alternative option.

 We also need to consider the tensions in Tibet and Xinjiang, which have also a geo-economic significance.

 It should be recalled that in 2000 the Chinese government launched a “Great Development Program for Western Regions” to finally establish a close connection between the land areas of Xinjiang and the Tibet region – which is essential for China’s nuclear defence and intelligence -and the coastal areas’ economic development.

This is also a very useful logical pathway to understand the Belt and Road Initiative well.

 Also at military level, which – in the Chinese logic – is closely linked to political decision-making, so far all the 2008 and 2009 “White Papers” of the Chinese Armed Forces have always emphasized the rule of the “three functions and a role”.

 It is a rational and operational criterion, which envisages that the Armed Forces should: a) provide the strength to enhance the Party’s leading role, which has always been  the first aim of the People’s Liberation Army (PLA); b) provide support to take advantage of this period of great strategic opportunities for China; c) also provide support for the defence of China’s national interests; and, finally, d) play an important role in maintaining world peace and promoting global economic development.

 These are not empty words. These are programs.

 Reading between the lines, it is said that – beyond the regional seas and networks outside its borders – China will operate in such a way as not to create definitive tensions with its competitors or allies.

 Therefore what we need to know is that currently the CPC has the urgent need to define a stable economic development for China.

 Thirty years ago the CPC leaders argued – and history has proved them right – that the war between the superpowers would never occur, in line with Mao Zedong’s thinking, whereby imperialism “was a paper tiger”.

 A regional, Soviet, Euro-American and partly Middle East paper tiger, in which no one had any interest in firing the first shot.

 At the time, however, China was already thinking about  Asia, Africa, the “Third World” devoid of “capitalists” or Soviet “revisionists”, left as breeding ground for a new growing great power, which had not been ruined by the crazy Cold War, namely China.

 Now – and this is also implicit in the Belt and Road Initiative – the current Chinese leaders obviously think that additional 30 or 40 years of peace and development are needed to enable China to really become a stable and great power.

 Hence in terms of current strategic doctrine, so far China has adapted to fight what the Chinese strategists call “a war and a half”. This means that it can and must successfully wage a major war on its own borders, in addition to effectively resisting attacks carried out around other Chinese borders.

 We also need to consider the stable Indian garrison of 60,000soldiers in Southern Tibet, in addition to the very recent Quad 2.0 alliance between the United States, India, Japan and Australia, established precisely to counter the Belt and Road Initiative.

  In this case, we have the whole range of potentialities and contrasts facing the Belt and Road Initiative.

 Obviously it should also be recalled that at least 22% of Japan’s and Australia’s foreign trade currently depends on China.  Hence it is very unlikely that regional and military tension will turn into a real clash.

 In its future strategic planning, however, China is preparing to resist an Indian land invasion from the South-East and to simultaneously lead a victorious regional naval confrontation, especially in Taiwan’s peripheral area or in the South China Sea.

Certainly present-day China is simultaneously carrying out the Belt and Road Initiative (BRI) and the Regional Comprehensive Economic Partnership (RCEP), with the ten ASEAN countries and the six ones with which ASEAN has further free trade treaties, as well as with the China-ASEAN Free Trade Area. The United States, however, has already created its anti-BRI commercial and economic network with the US-Mexico-Canada Trade Agreement (USMCA), and then with the probable reformulation of a  proposal from the old Trans-Pacific Partnership (TTP) or with the new Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

 Hence, while the United States is rebuilding its geo-economic centre of gravity in Asia – that it considers to be of primary military and commercial interest – obviously China has turned to Africa, where currently the United States is not particularly engaged.

 A Zen game of void and full, where everyone represents both characteristics.

 At political and technological levels, the United States is causing severe trouble to China, particularly with the recent creation of a special agency called Review of Controls for Certain Emergent Technologies, an office for “dual use” control regarding biotechnologies, Artificial Intelligence, advanced navigation and positioning systems, data analysis and above all big data, robotics and biotechnology.

 This is, in fact, the broader scene of the clash on Huawei and 5G which, as we can imagine, is much more important than the simple organization of an evolved Internet network.

 For example, in the 2018 US Cyber Strategy it is argued that the USA must “win two cyber wars simultaneously”, which are clearly wars against the Russian Federation and, above all, against China.

 Hence, should the United States led by President Trump fail to fully win their current trade war with China, it could use the cyber leverage to redress the global balance of power, with a clear support action taken by the other NATO countries – an action which is necessary from the political and military viewpoints.

 One will be used in the absence of the other  – the greater the Chinese commercial presence in the leading sectors, the greater the tendency and likelihood of a cyber war against China.

 And the other way round.

 There is more, however, in relation to the clash between the United States and China and, hence, in relation to the necessary and logical shift of China to a closer bond with the EU, its individual Member States and the rest of the world.

 For example, The National Defense Authorization Act of 2019, published on August 13, 2018, focuses on the operations of the Chinese ZTE corporation, while the US government is prohibited from purchasing all Huawei’s materials –  as is now well-known – but also the products of Dahua, which deals with video surveillance, as well as the products of Hytera, which manufactures advanced radio systems and, finally, of Hikvision, the current largest producer of video surveillance systems in the world.

 As has long been happening, in all the US government official documents China is also seen as a dangerous competitor of almost equal rank and power.

 Is it a realistic project? The answer is both yes and no. At technological level, probably in the future. At financial and commercial levels, not yet.

Nevertheless the matter here is tuer dans l’oeuf, namely to nip in the bud.

 It should also be recalled that, again in August 2018, US President Trump announced 25% additional tariffs and duties on 50 billion US imports/year from China and later 10% additional tariffs and duties on other 200 billion Chinese goods exported to the United States. Last September further duties on Chinese exports to the USA were announced to the tune of additional 267 billion dollars.

 Last autumn, at the UN General Assembly, the United States made public the “alleged” China’s influence operations against the Republican Party (only?) in the midterm elections while, at the same time, Terry Branstad – the  US ambassador to China since 2017, a “friend of President Xi” and former Governor of Iowa twice –  published an article condemning China’s “influence operations” in Iowa.

 The United States has also put great pressure on El Salvador to avoid it breaking with Taiwan. Later, however, the United States exerted further very strong pressures on the IMF, with a view to stopping funds for Pakistan that would partly be used to repay old Chinese loans to the country.

 Also President Trump’s move to withdraw from the INF Treaty – which apparently concerns, above all, the Russian Federation – anyway puts also China under military pressure.

 Nevertheless, there is the stick and also the carrot for the future US friends in Asia: last August, in fact, US Secretary of State Mike Pompeo proposed a package of financial aid for Asia to the tune of 300 million dollars, to which other 133 million dollars would be added, albeit only for specific support to private companies operating in the region.

 The BUILD Act has created a new US government agency, namely the U.S. International Development Finance Corporation, with as many as 60 billion dollars of US funds  already available abroad, above all to Asia – a very evident response to the Belt and Road Initiative.

 Hence what will the United States do in the future, considering that the bilateral clash with China is now seen as structural?

 Surely, the battle over duties will continue and it is now possible that, in only two other moves, all Chinese imports to the USA will be heavily and selectively taxed.

 In any case, the United States will try to hit the companies that are most active in the Chinese project known as Made in China 2025.

 The current Chinese leaders’ project is modelled on the German one, known as Industry 4.0, and is already focused on the general technological upgrade of Chinese public and private companies, with the predetermined increase of components and spare parts manufactured nationally from 40% in 2020 to 70% in 2025.

 There is also the construction of centres for productive innovation – that is already at an advanced stage – which will be 15 in 2020 and 40 in 2025. There will also be a change and a significant strengthening of internal intellectual property rights.

Innovation will be mainly focused on: 1) a new information technology; 2) robotics and the automated production of consumer goods and capital equipment; 3) aerospace and aeronautics; 4) hi-tech shipping; 5) railways; 6) vehicles with new energy and motion systems; 7) energy; 8) agricultural technologies; 9) new materials; 10) biopharma and advanced biomedical technologies.

 In the official Chinese documents, there is no mention of “autonomous innovation “in all these sectors – as was the case in previous projects as from 2006 – and it is not here just a matter of innovation, but of entire production processes.

 Autonomous innovation is internal activity and here the Chinese government makes us understand that there is a global research and experimentation activity open to collaborations with the EU, Japan and Korea.

 Hence, where possible, the United States will hit exactly in these sectors, by avoiding – to any possible  extent – any kind of technology transfer or, in any case, any transfer ofad hoc scientific information.

 Furthermore, in the future, the United States will have the opportunity of convincing both Japan and the EU to implement practices against China featuring sanctions and open trade restriction, not only at technological level. Certainly Italy will harshly experience this kind of  operations, whether they are known or not to our intelligence Services.

 How will China respond to these practices? Probably with a hard and close dialogue, although with some significant concessions to the United States.

 Furthermore, in the framework of China’s technological upgrade program, its leaders will have the chance to increase the non-State sphere in China’s production system. Finally China will look for new foreign markets. This is the first CPC’s response.

 Most likely, the Chinese leaders will also avoid the additional burden of public debt on companies and, above all, they will largely limit the growth of real estate speculation.

 In all likelihood, China will spend a lot of money on productive investment – as already envisaged in its 2025 Plan – and will look for new external markets, above all (but not only) with the Belt and Road Initiative.

 It should be recalled that currently the BRI countries account for 27.3% of the total Chinese foreign trade with the United States alone.

 Moreover, China will soon develop excellent regional free trade agreements, such as with the Regional Comprehensive Economic Partnership and the enlarged ASEAN.

 Furthermore, nothing forbids to reach a great agreement with India.

  In the future, however, China’s trade interest will be, above all, in Japan and South Korea.

 Meanwhile, the United States can carefully assess the  military and commercial cost of an all-out economic war against China, which will certainly not be irrelevant.

 This is context in which we can see the weak and tired interests of the European Union, which does not know its destiny and hence will not have one. The same applies to Italy which could use the potential of the Road and Belt Initiative, but will not be in a position to do so and, above all,  will have no way out of the US strategic, military and financial pressure.

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 “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. 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 “Honorable” of the Académie des Sciences de l’Institut de France. “

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East Asia

The ‘Multiplier Effect’ of BRICS+

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The main hallmark of China’s chairmanship in the BRICS grouping in 2022 has been the unveiling of plans to institutionalize the BRICS+ format and to explore the possibilities of expanding the core of the BRICS bloc. The current debate regarding the future trajectories of the BRICS+ format centers on whether the expansion of the bloc is to proceed one by one by adding new countries to the BRICS core, or via the format of “integration of integrations”, namely the creation of a platform for the cooperation of regional arrangements in which BRICS countries are members. At this stage, it appears that both tracks are possible and have their pros and cons. But there is one factor in the regional “integration of integrations” model that has particular merit – it is the “BRICS+” multiplier that allows for a significant extension in the outreach undertaken by core BRICS economies with respect to the rest of the Global South.

In terms of scale, the effects of the two formats of BRICS expansion may be mathematically illustrated by the difference between the arithmetic and geometric progression. If the one-by-one expansion in the core of the BRICS grouping represents the minimalism of the arithmetic progression, the BRICS+ format of integration of integrations can be seen as a far more extensive and ambitious undertaking characterized by a geometric progression. With respect to the arithmetic progression, the waves of the expansion in the BRICS core may involve a sequential addition of one or several countries representing the most significant heavyweights (possibly members of G20 from the Global South). The alternative is the aggregation of the regional integration blocs of all of the five BRICS members – represented by the BEAMS platforms consisting of BIMSTEC, Eurasian Economic Union, the ASEAN-China FTA, Mercosur and the South African Customs Union – leading to the addition of up to 25 members (the 5 times 5 geometric progression – or the 5 BRICS taken to the power of 2) of the BRICS+ circle that are the regional neighbors/partners of BRICS economies.

This BRICS+ geometric progression can be taken further to the next level whereby a wider circle of countries is included into the enlarged platform that comprises the African Union in Africa, CELAC in Latin America and the Eurasian economies from the Global South. The Eurasian constellation of developing economies can be formed on the basis of the aggregation of the main regional integration blocs such as the Shanghai Cooperation Organization (SCO), the Gulf Cooperation Council (GCC), ASEAN, SAARC, EAEU. Such an extended platform across all three continents of the Global South may be termed as TRIA (Trilateral Intercontinental Alliance) and it comprises nearly 125-130 developing economies (depending on the exact methodological approach of including the Eurasian economies). This second sequence of extending the BRICS+ platform results in a “5 times 5 times 5” geometric progression – or the 5 BRICS economies taken to the power of 3.

These stages of progression in the extension of the BRICS+ circle can be taken to an even higher level if one is to account for all of the bilateral/plurilateral trade deals, digital alliances and other accords that may be multilateralized on the basis of the BRICS+ platform. For example, the Israel-Mercosur FTA or the SACU-EFTA FTA could be extended to include more developing countries from the BRICS+ circle. At this stage the combinatorics of matching and aggregating the multitudes of alliances along the BRICS+ platform kicks in – each of the main regions and regional integration grouping from the Global South has its own cob-web of alliances that can be shared throughout this extended network of Global South.

Such additional multiplier effects will be all the more powerful, the greater the openness and inclusiveness of the aggregated BRICS+ platform and the more connectivity there is across the alliances concluded by developing economies with their partners from across the globe. In other words, in order for the multiplier effects to be increased the BRICS+ platform of integration of integrations needs to be predicated on alliances that are scalable and capable of connecting with other regional blocs (regional alliances that can be “globalized”). This in turn may be facilitated by particular emphasis placed on building platforms for regional development institutions (with standardized protocols for investment projects, including with respect to PPPs); greater scope for digital economic alliances that may be particularly amenable to scale and replication.

Potentially this sequential approach to building alliances across the Global South on the basis of the BRICS+ “integration of integrations” could become a basis for re-starting the globalization process in the world economy bottom-up (from the level of countries and regional blocs) rather than top-down (solely from the level of global organizations). In fact, this “integration of integrations” sequence may prove superior to the previous attempts at top-down wholesale liberalization via “Washington consensus” for the following reasons:

  • Greater gradualism and connectivity of country and regional integration roadmaps with the resulting global pattern of liberalization
  • Greater flexibility: there may be room for revision and corrections to the resulting global pattern at the local level
  • Greater accordance of the global pattern of alliances and integration with local/country-level and regional peculiarities and exigencies
  • Greater political sustainability and feasibility of the resulting global pattern of alliances that is predicated on the cooperative network of regional alliances

This greater sustainability and flexibility of the bottom-up globalization process as a network of alliances rather than a rigid framework that is to be implemented across the globe without due account of the regional and country-level peculiarities argues in favor of looking for ways to render such a model of globalization more feasible and effective.

Under this scenario of a network-type globalization what would be the role of global institutions such as the WTO, IMF, World Bank? In many ways it would remain crucial for the sustainability of the construct of the reshaped global economic architecture. The global institutions would receive the additional mandate of coordinating the regional networks and development institutions:

  • IMF: coordination of regional financing arrangements (RFAs)
  • World Bank: coordination of regional development banks
  • WTO: coordination of regional integration arrangements

There will also be a need for global institutions to focus more on resolving global issues, including global imbalances. This in turn would allow the global economic system to overcome the current problem of regional and global institutions/organizations operating frequently as substitutes rather than mutually reinforcing complements.

In sum, the BRICS+ track of country-by-country additions to the BRICS core if pursued solely on its own without building a broader network of alliances may result in minor alterations to the status-quo and a missed opportunity for the Global South and the broader global economy. At the same time, the possibilities offered by the “integration of integrations” track for BRICS+ are substantial, provided that such a platform is open, inclusive and ensures connectivity across regional integration arrangements – this will deliver the much needed “multiplier effect” in the process of economic cooperation and can set off a new process of globalization that connects regional arrangements in the developed and the developing world. Such a paradigm may be the real mission of BRICS after all – the value of BRICS is not in each of them taken separately, but rather in them being connected together to form a construct that supports the edifice of the global economic architecture.

From our partner RIAC

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Ukraine’s losses are China’s gains

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A woman walks past sandbags piled for defensive protection, in Odessa, Ukraine. © UNICEF/Siegfried Modola

The conflict in Ukraine will have major strategic consequences for Chinese foreign policy in the Indo-Pacific. It will promote the deepening of Russian–Chinese economic cooperation that will make both countries more resilient to Western economic pressure. Long-term instability in Europe will make it more difficult for the United States to boost its Pacific presence for years to come with significant US financial and military resources being drawn toward supporting Ukraine.

The conflict has demonstrated that the West is not able to impose sanctions on a major economy without damaging its own stability. The war has also shown the effectiveness of the Russian nuclear deterrent, making even a limited Western intervention unthinkable.

China will be the main beneficiary of the Ukraine crisis. But this is not reflected in China’s political rhetoric which has been carefully calculated to avoid any major fallout with the European Union and other developed countries, while also maintaining close cooperation with Russia.

The official Chinese position has remained consistent with the statement made by Chinese Foreign Minister Wang Yi in February 2022 at the outbreak of the war: China is concerned with the violence and wants it to stop. It maintains that the territorial integrity and security interests of all parties need to be respected. China also maintains that NATO enlargement is partially responsible for the crisis.

On the economic front, China has seized the major strategic opportunities provided by the war. During the first four months of 2022, trade between Russia and China increased by 25.9 per cent. Russian exports to China grew by 37.8 per cent, to US$30.85 billion. The physical volume of natural gas exports also jumped 15 per cent.

China is in line to supplant the European Union as Russia’s main economic partner. The Chinese Ambassador to Russia Zhang Hanhui has called upon Chinese businesspeople to ‘fill the void’ left in the Russian market by outgoing Western businesses. Cooperation with China has contributed to Russia’s federal budget surplus between January–April 2022 despite the war. Maintaining this financial and economic stability appears to be Russia’s strategy as it continues to press in Ukraine.

By 2023, most or all bilateral trade is expected to be conducted in renminbi. Chinese companies and brands will likely dominate large segments of the Russian consumer market and will become Russia’s key industrial and technological partners. There is also a growing trend towards a large part of Russian trade being conducted with third countries in renminbi.

With the expected expansion of the logistical infrastructure, China will obtain a major source of strategic commodities. China will be able to procure these commodities at significant discounts because Russia will be isolated from many other markets and China will be using its own currency. This will significantly reduce the West’s ability to leverage economic pressure points against China.

Some of China’s top-tier global companies are visibly reducing their presence in Russia because secondary sanctions could affect their operations in international markets. But cooperation in many areas will be overtaken by second-tier corporations with limited or no global exposure. Such companies will still be powerful enough to operate in the Russian market. Their operations will be serviced by specialised banks with no exposure in the West, like in Iran.

Strategically, this transition — coupled with deep internal changes in the Russian political economy — will make Russia largely immune to economic warfare. For the foreseeable future, the West will have no other means to deter Russia in Europe except for costly military options. In turn, this will provide major strategic opportunities for China in the Pacific.

The military lessons of the war for China are too early and too difficult to assess based on available data. One characteristic of the Ukrainian conflict is an unprecedented scale of propaganda and misinformation from all sides.

But two clear lessons have emerged from the war so far. First, US and NATO allies will always try to avoid a direct military confrontation with a major nuclear power. Even if a power is fighting a full-scale war at their doorstep. Second, economic war on Russia has caused significant problems for Western economies, including rising inflationary pressures and falling growth rates. Any comparable actions against China, an economy ten times bigger, will devastate much of the world economy. This makes any such action extremely unlikely.

From our partner RIAC

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Taiwan dispute, regional stability in East Asia and US policy towards it

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In the 1950s, armed confrontation erupted between the People’s Republic of China (PRC) and the Republic of China (ROC) over vital islands in the Taiwan Strait. ROC-controlled islands were bombarded by the PRC on two distinct occasions in the 1950s. The US retaliated by acting actively on favor of the ROC. Tensions in the Taiwan Strait were exacerbated by US policy toward East Asia during the early Cold War. In late 1949 and early 1950, American authorities were prepared to allow PRC forces to cross the Taiwan Strait and defeat Chiang, but when the Korean War broke out in June 1950, the US moved its Seventh Fleet into the Taiwan Strait to keep the conflict from expanding south. The advent of the Seventh Fleet enraged the Chinese Communists, who moved soldiers from Taiwan to the Korean front in preparation for an attack. This served to postpone military conflict in the Strait until after the Korean War, when the US withdrew its fleet.

Beijing claims there is only “One China,” of which Taiwan is a part. It considers the People’s Republic of China to be China’s only legitimate government, a position it refers to as the “One-China concept,” and desires Taiwan’s eventual “unification” with the mainland.

China, Mongolia, Taiwan, Tibet, and the South China Sea remain part of the ROC, according to Taiwan’s KMT-drafted constitution. The KMT opposes Taiwan’s independence and has repeatedly advocated for tighter ties with China. However, in light of recent election setbacks, KMT leaders have pondered whether the party’s position on the 1992 Consensus should be changed. The Democratic Progressive Party (DPP), the KMT’s main adversary, has never supported the 1992 Consensus’s understanding. President Tsai, who is also the DPP’s leader, has refused to recognize the consensus in writing. Instead, she has endeavored to find a different formulation that Beijing will accept. Tsai declared she was “Elected President in accordance with the Constitution of the Republic of China,” which is a One-China document, and that she would “Safeguard the Sovereignty and Territory of the Republic of China” in her 2016 inaugural address. Tsai also promised to “Handle Cross-Strait Affairs in accordance with the Republic of China Constitution, the Act Governing Relations Between People of Taiwan Area and the People of the Mainland Area, and other applicable legislation.” Beijing, on the other hand, rejected this statement and severed ties with Taiwan.

UN Membership Status for Taiwan

China directly rejects the participation of Taiwan in other international organizations that only allow governments to join. Taiwan complains its absence on a regular basis, while the US advocates for Taiwan’s meaningful involvement in such groups. Taiwan, on the other hand, is a member of over forty organizations, the most of which are regional in nature, such as the Asian Development Bank and the Asia-Pacific Economic Cooperation Forum, as well as the World Trade Organization. On several additional bodies, it has observer or other status. Only fourteen countries have formal diplomatic relations with Taiwan. No government has ever maintained formal diplomatic relations with both China and Taiwan at the same time.

Economic Situation of Taiwan

Taiwan’s economy is still based on trade with China, the island’s most important commercial partner. However, their economic relationship has been strained in recent years, partially as a result of Beijing’s pressure on Taiwan and Taiwanese leaders’ rising concerns about the island’s overdependence on Chinese trade. President Ma, who served from 2008 to 2016, signed over twenty agreements with the PRC, notably the 2010 Cross-Straits Economic Cooperation Framework Agreement, in which the two countries agreed to remove trade barriers. Direct sea, air, and mail ties between China and Taiwan were reestablished after decades of prohibition. They also agreed that banks, insurers, and other financial service providers would be permitted to operate in both markets. Tsai’s main program, the New Southbound Policy, has had some success in increasing trade and investment with Southeast Asian and Indo-Pacific countries. Between 2016, when the project was announced, and 2021, trade between Taiwan and the eighteen nations increased by more than $50 billion. Nonetheless, Taiwan’s exports to China reached an all-time high in 2021. Beijing has exerted pressure on other countries to refrain from signing free trade deals with Taiwan. Only a few nations have signed free trade agreements with the island, with New Zealand and Singapore being the only industrialized economies to do so.

US-Taiwan Relations

The United States and the People’s Republic of China established formal diplomatic ties in 1979. At the same time, it cut diplomatic ties with the ROC and terminated their mutual defense treaty. However, the US maintains a strong unofficial relationship with the island, selling defense weapons to its military. Beijing has frequently pushed the US to stop sending weapons to Taiwan and to cut ties with the country. The United States’ strategy is guided by its One-China policy. It is based on a number of documents, including three US-China communiqués issued in 1972, 1978, and 1982; the Taiwan Relations Act, passed by the US Congress in 1979; and President Ronald Reagan’s recently disclosed “Six Assurances”, which he delivered to Taiwan in 1982. According to these documents, the United States:

“Acknowledges the Chinese stance that there is only one China and Taiwan is a part of China” and that the PRC is the “only lawful government of China”

Disposes the use of force to resolve the conflict; maintains cultural, commercial, and other ties with Taiwan through the American Institute in Taiwan (AIT), commits to selling arms to Taiwan for self-defense and maintains the ability to come to Taiwan’s defense while not committing to do so, a policy known as Strategic Ambiguity was created.

The major purpose of the United States is to maintain peace and stability in the Taiwan Strait and it has urged both Beijing and Taipei to do so. It declares that it opposes Taiwanese independence. For decades, the US has tried to strike a careful balance between backing Taiwan and avoiding a confrontation with China through its policy of strategic ambiguity.

Over Chinese protests, the US strengthened ties with Taiwan under President Donald Trump, selling over $18 billion in armaments to the military and erecting a $250 million facility for its de facto embassy in Taipei. Tsai and Trump spoke by phone before Trump’s inauguration, the greatest degree of engagement between the two since 1979. He also dispatched several top administration officials to Taipei, including a cabinet member, and the State Department lifted long-standing limitations on where and how US officials can meet with their Taiwanese counterparts during his final days in office.

Biden’s Administrative and Military Relations with Taiwan

The Biden administration has taken a similar approach, maintained arms shipments and endorsed Trump’s decision to allow US officials to meet with Taiwanese officials more freely. Biden was the first president of the United States to invite Taiwanese officials to the inauguration. The US regularly sails ships across the Taiwan Strait to demonstrate its military presence in the region, and it has encouraged Taiwan to raise its defense budget. The United States has been more supportive of Taiwan in recent years than it had been before China adopted a rejectionist stance toward the current Taiwanese government. On cross-strait problems, Tsai has been noticeably and consistently moderate. The fact that she would push the limit by declaring full formal independence is not a risk Beijing has to be concerned about. During Tsai’s presidency, Washington has increased its support for Taiwan, primarily in response to Beijing’s increasing pressure on the island. The Biden administration has a variety of grievances about Chinese behavior and its coercion of Taiwan has been towards the top of that list, as seen by congressional legislation and presidential and administration policy comments.

U-S Implications for Strategic Stability over Taiwan Issues

Strategic stability refers to a condition in which both the United States and China can pursue their key national interests without jeopardizing, if not increasing, regional and global stability. Such strategic stability may also help to establish a pattern of bilateral relations that decreases the likelihood of accidental conflict particularly military conflict while simultaneously enhancing the possibilities for future collaboration. However, the reality on all three sides make stability appear like a far-off dream. Beijing has made it obvious that it feels its national might is quickly expanding and that it will soon be enough to exercise diplomatic, economic, and military supremacy, at least in the western Pacific. Furthermore, the realities of Beijing’s expanding power have allowed it to engage in resentment diplomacy, accusing the US and other foreign powers of being responsible for China’s “Century of Humiliation” and demanding retribution. If strategic stability is to be achieved, it must begin here for the US to change its policies toward Taiwan and China, they must opt.

Conclusion

Both militaries have increased their capabilities in order to dissuade and defeat the other. The two countries have moved from rivalry to conflict, and both have made establishing Taiwan’s future the focal point of that clash on numerous occasions. Taiwan, whether you call it a pawn or not, is caught in the crossfire. As a result, lowering tensions over Taiwan might be the first step toward avoiding potentially devastating instability and, possibly, developing a cautious trust on both sides that other lingering problems can be resolved successfully. A reinforced US policy of dual deterrence, coupled with authoritative assurance, can be a first step toward restoring trust in enormous strategic stability between these two superpowers.

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by Vittoria D’Alessio Aphasia is a devastating diagnosis that affects your ability to speak or understand language. It’s a little-known condition...

Russia6 hours ago

British Sanctions Against Patriarch Kirill. Forgiveness and Humility in Response

The UK Treasury has published another list of Russian individuals subject to financial sanctions. Along with 11 other Russians, the Patriarch of Moscow and All...

Africa9 hours ago

African Youth Deserve Better Learning Opportunities

Authors: Dr. Mahamudu Bawumia and Ousmane Diagana* Two years of the COVID-19 pandemic have exacerbated the education crisis in Western...

Terrorism Terrorism
Energy News10 hours ago

Impacts Of Nuclear Waste Disposal

Nuclear energy has long been regarded as an excellent option to provide the electricity needed to heat and light our...

Green Planet11 hours ago

Types of Natural Fibers from Plants and Their Characteristics

Nature has provided abundant resources and can be used into various processed products that can help ease human life. With...

Economy13 hours ago

Economic Restructuring Key to Coping with Risks in China’s Economy

Authors: Ibrahim Chowdhury, Ekaterine T. Vashakmadze, Yusha Li* Just over two years after the COVID-19 pandemic caused the deepest global...

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