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What Coronavirus Could Mean for China

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The coronavirus pandemic will undoubtedly have an impact on China’s economy. Consider, for example, the US-China trade deal, the first phase of which took effect in February. That phase stipulates that Beijing will have to buy an additional $200 billion in US goods over the next two years. Though the Chinese government has said the country will comply with this requirement, it remains to be seen whether Beijing will be able to follow through on this and other commitments contained in the deal.

There is also concern in the US that the second phase of trade negotiations with China will be delayed. This would have a negative effect on Washington-Beijing relations, which could in turn have global repercussions.

The pandemic is also creating major disruption of China’s near-trillion-dollar Belt and Road Initiative (BRI). Significant delays have been reported in BRI projects in South Asia, specifically in Cambodia, Indonesia, Sri Lanka, and other states. One problem is travel restrictions, which are limiting Chinese workers’ ability to participate in BRI projects abroad. There is also a fear that a partial shutdown of Chinese factories could have a major ripple effect on the BRI, as large infrastructure projects need a constant supply of key resources that are lacking in host states.

The Chinese government will undoubtedly work very hard to salvage the BRI. This flagship project, which is widely considered to be Xi Jinping’s personal initiative, is now infused into Chinese statecraft and foreign policy—and even more importantly into the country’s perception of its own rising global standing. Disruption of the BRI would seriously damage Beijing’s geopolitical aspirations.

To assist the Chinese economy as it copes with the effects of the coronavirus crisis, Beijing is likely to intervene significantly via interest rate cuts, increased lending, and fiscal stimulus measures. It is going to have to deal with damage caused to the economy by the diminishing of world supply chains resulting from a decrease in global demand for Chinese products.

There could be an even bigger dimension to China’s coronavirus crisis. There is a growing trend among Western states to limit their exposure to Chinese economic power through a partial decoupling of existing deep economic contacts. Many world corporations with global supply chains are stationed in China, and some might react to the coronavirus crisis by choosing to diversify their locations. Indeed, such calls were rising well before the pandemic because Western and Chinese standards of doing business are fundamentally different on many levels.

Ideological troubles

The world was rattled by the lack of information emanating from China at the beginning of the pandemic and by subsequent alleged efforts by Beijing to limit the free dissemination of information about the epidemic. This will likely cause serious damage to China’s attempts to position itself as an aspiring global power with ambitions to remake both state-to-state relations and the Eurasian economic order.

Though Beijing has put great effort into using this crisis as an opportunity to enhance its soft power through the provision of medical help to states around the globe, an opposite trend is emerging: a deepening of distrust of China and a worsening of its ability to position itself as a model power.

There are calls around the world demanding explanations from Beijing about the crisis, as well as threats of lawsuits over the alleged cover-up of information by the Chinese at the beginning of the pandemic. Many investigations will be made into the outbreak of the virus, but it is clear that the crisis has widened an already significant ideological divide between China and the Western world.

Poised as they are to compete geopolitically in the coming decades, the two poles have tried so far to refrain from addressing the unfolding struggle in ideological terms—but the coronavirus crisis will eventually expose an ideological clash that will complicate West-China relations.

The pandemic might serve as a breaking point whereby EU institutions begin to vocally question information coming from China and openly criticize the country. This would be consistent with the development of EU policy toward Beijing over the past year. In 2019, EU institutions recognized China as Europe’s systemic rival. Europeans are starting to reconsider their dependency on a single external supplier for crucial medical equipment.

China’s relations with the US will be damaged as Washington strives to consolidate its stance among its allies and partners around the globe. The extent of the damage will ultimately depend on how far the US is willing to go to use the pandemic as a weapon against China.

China’s diminished position will limit its flexibility even along BRI corridors. Pre-pandemic concerns about China’s political and economic moves in Central Asia and the Middle East will increasingly ossify into geopolitical limits for Beijing in the wake of the crisis.

While some analysts are making radical forecasts, the likeliest damage scenario for China’s global standing after the coronavirus pandemic is at a medium level of severity. The BRI will likely proceed along the planned corridors. The results of the pandemic will be seen primarily in the ideological realm, which is so deeply interwoven into the geopolitical. The Eurasia of 2050 may well show lines of influence divided between Chinese economic and ideological spheres and the Western world. The coronavirus might turn out to have been the primary cause of the decoupling of the West and China.

Author’s note: First published in BESA Center

Emil Avdaliani specializes on former Soviet space and wider Eurasia with particular focus on Russia's internal and foreign policy, relations with Iran, China, the EU and the US. He teaches history and international relations at Tbilisi State University and Ilia State University (Georgia).

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East Asia

South Korea’s Potential for Global Influence is Weakened by its Mistreatment of Women

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In recent years, the Republic of Korea has become a pop culture juggernaut.

Eight years after “Gangnam Style” went global, K-Pop still reigns supreme with boy band BTS topping charts and issuing IPOs. Bong Joon-ho’s film “Parasite” swept last year’s Oscars, kimchi now has UNESCO cultural heritage status, while Samsung smartphones are used all over the world, second only to the mighty Apple.

The global appeal of the Korean Wave, known as “Hallyu,” recently attracted the attention of a report from the Carnegie Endowment for International Peace, which argued that this rising soft power could in turn boost South Korea’s global influence and drive diplomatic leadership on a broad range of transnational issues, from climate change to public health to democracy promotion.

This all sounds great, but there remains a nagging problem. Despite its flourishing culture, there have also been a string of scandals highlighting the plight of women in the country, who facing everything from inequality to workplace discrimination and rampant sexual harassment.

By any measure, the problem is significant and costly to the country’s interests. According to a 2019 report by the World Economic Forum, South Korea ranks 124 out of 149 countries in the world in terms of economic opportunity for women, while another report cites the highest gender pay gap among OECD nations at 35%. This low level of female participation in the economy is not only a drag on future GDP growth, but also coincides with a parallel mental health crisis: suicides among Korean women in their 20s have jumped by more than 40 percent in the last year, at the same time that male deaths are in decline.

Mistreatment of women in Korea may be a feature, not a bug, of the system. A recent string of sexual abuse scandals has reached the highest levels of the country’s political elites.

This past July, the country was shocked to wake up to the news that the popular Mayor of Seoul Park Won-soon had committed suicide when accusations of sexual assault against his secretary were made public. Mayor Park had built his image as stalwart champion of women’s rights, and yet, the secretary, who has been threatened and blamed following the suicide, says that she “felt defenseless and weak before the immense power” of the Mayor.

Months later, we are discovering the very people meant to protect the victims instead act to protect the alleged perpetrators. Congresswoman Nam In-soon, one of South Korea’s highest profile women’s rights activists, is being called on to resign after it was revealed that she leaked news of the sexual harassment investigation into Mayor Park. Another member of congress, Yoon Mee-hyang, was forced out of the ruling Democratic Party after facing criminal charges of embezzlement from the “comfort women” charity she used to direct, which raised money for survivors of World War II military brothels.

Before Mayor Park’s suicide and the comfort women scandal, there were many others. Last year, South Chungcheong Province Governor Ahn Hee-jung was convicted on nine counts of rape and sentenced to three and half years in prison. Mayor of Busan Oh Keo-Don was forced to resign following the assault accusation. Ahn Tae-geun, a former senior prosecutor whose case had become symbolic for the #MeToo movement, had his conviction overturned earlier this year.

These patterns stand in stark contrast to the image the government seeks to project.

In public speeches, President Moon Jae-in frequently advocates in defense of women’s rights in speeches and interviews. Speaking at the last UN General Assembly, he declared a commitment to inclusiveness and reducing inequalities. The ruling DPK has long associated itself with rights activists, and has made gestures toward combating misconduct and mistreatment of women – but critics say they aren’t doing enough. A headline on CNN last summer went so far as to call out the hypocrisy: “South Korea’s President says he’s a feminist. Three of his allies have been accused of sex crimes.”

Despite numerous protest movements and well supported marches, Korea has not yet experienced a breakthrough #MeToo moment. According to media testimonials, many women continue to face significant obstacles to advance in their careers. Even after 70,000 women marched last year to protest the prolific abuse of spy cams set up in bathrooms and changing rooms, patriarchal attitudes continue. This month, guidelines published on an official government website advising pregnant women to cook, clean, and to lose weight for their husbands after childbirth caused a social media uproar.

This is a deeply concerning problem. As highlighted by the Carnegie report, Korea’s role as a “middle power” in a such a volatile region would be highly welcome, and not just on things like climate and coronavirus vaccine distribution, but also their crucial role in containing North Korea’s nuclear ambitions and holding firm in the shadow of China’s expanding authoritarian reach.

Some Korean groups have advocated internationally against gender-based violence, which is undoubtedly a very worthy cause. But until the Moon government can get serious about tackling these inequalities and abuses at home, its efforts to project influence abroad will fail to meet potential.

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Considering the Continental Dimension of the Indo-Pacific: The Mongolian Precedent

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The Indo-Pacific is now the site of global great-power competition and contestation. And, as a reflection of its growing importance in international discourse, a number of extra-regional actors adopted the concept last year. Among those adoptees, Mongolia set a unique precedent for the regional security discourse to actively consider the continental dimension of the Indo-Pacific by highlighting geopolitical convergences with other regional actors, and the strategic threat posed by Beijing’s “Silk Road Economic Belt”.

Mongolia in the Indo-Pacific

Actors who have adopted the Indo-Pacific concept vaguely define it as beginning in the Arabian Sea and ending in the Western Pacific Ocean. Much of the discourse is also driven by the US-China strategic competition in Southeast Asia, and the US’ attempt to counter Chinese influence in the Indian and Pacific Oceans, along with its regional partners and allies, e.g the India-Australia-Japan-US ‘Quad’. As a result, actors in the Indo-Pacific have generally focused on the development of maritime military and economic measures.

In early October, during a Japan-Mongolia Foreign Ministers’ Meeting, both sides agreed to continue consolidating their efforts in pursuing a “Free and Open Indo-Pacific”, in line with the promises of the 2018 Japan-Mongolia Summit.

Mongolia’s participation as a continental, extra-regional actor with limited maritime significance, shifts the geopolitical locus of the theatre, ever so slightly, north of Southeast Asia (the current focus). Ulaanbaatar’s adoption of the geostrategic theatre appears to be driven by continued Chinese antagonism, and a result of its “third neighbour” policy.

China continues to threaten Mongolia’s territorial sovereignty by claiming Inner Mongolia,clamp down on its cultural identity, and impose costs on Mongolia’s export-oriented economy. The last issue is critical, since Mongolia’s largest export partner, approximately92.78 percent of overall exports, is China. Enclosed between two large countries, Russia and China, Mongolia has traditionally maintained a “third neighbour” policy approach: building political and economic relationships with actors other than the aforementioned.

Given the continued animosity with Beijing, Ulaanbaatar has increasingly emphasised these other relations over the years. e.g. with the UK, the US, Japan, etc. In 2019 President Khaltmaagiin Battulga visited New Delhi to develop deeper ties with another “third neighbour” state. Mongolia also shares the “like-minded” characteristics – a liberal democracy – to maintain and preserve a “free, fair, open and rules-based” order in the US-Japan Indo-Pacific strategy.

And so, actors looking to potentially partner with Mongolia or others with similar economic and connectivity deficits in Central and West Asia, will have to include, within their Indo-Pacific approaches, measures that involve non-littoral actors.

The BRI and Continental Asia

China’s rise as an expansionist Asian military and global economic power is at the core of the  Indo-Pacific security discourse. Beijing’s claims in the South China Sea (SCS), China’s growing naval power, and the colossal Belt and Road Initiative (BRI) form the major strategic threats to regional multilateralism and collective security.

The most long standing threat among them, the BRI, is divided into the transcontinental “silk route” and the maritime “silk road”. However, much of the Indo-Pacific discourse is dominated by the silk road, especially those projects directed towards the Indian Ocean Region (IOR). BRI projects in the IOR are crucial to Beijing’s expanding influence in South Asia and control on international energy and trade supply routes. Also hidden among the maritime/trans-continental connectivity and infrastructure projects, is China’s growing security presence in the region.

However, Mongolia’s entry directs attention to a dimension unique to the current maritime Indo-Pacific discourse –the silk route, that cuts across Central Asia, towards Europe and South Asia, with a similar number of projects in Southeast Asia.

Among the six ‘silk route’ projects, Mongolia’s concern is the China-Mongolia-Russia Economic Corridor (CMREC) that cuts through Eastern Mongolia, beginning in Ulanqab (or “Jining”) in Inner Mongolia, and ending at Ulan-Ude, in BurYatia, Russia. Similar projects include the China-Pakistan Economic Corridor (CPEC) and the China-Central Asia-West Asia Economic Corridor (CCWAEC).

Connecting the continental to the maritime is the main goal of the BRI. In fact, the project was first announced during a Chinese state visit to Central Asia in 2013. President Xi Jinping proposed the “Silk Road Economic Belt” with a vision to connect the Pacific Ocean to the Baltic Sea. Beijing’s vision of comprehensive global economic and military power requires a built path to various regions of the world, i.e infrastructure to facilitate dual-use logistics. Given the recent spate of BRI loans going bad, this vision continues to remain unfulfilled.

The continental dimension, Asia, is what makes the Indo-Pacific a theatre of global concern. Trans-continental connectivity, between and within Europe and Asia, narrows the distance between actors, and the shared interest in maintaining regional multilateralism and collective security ensures their continued participation in the Indo-Pacific. As more actors like Mongolia adopt the Indo-Pacific concept, connecting the continental to the maritime and vice versa, sans BRI, will become a strategic concern.

Mongolia’s entry into the theatre offers a unique precedent for those involved in maintaining and preserving a “free, fair, open and rules-based” Indo-Pacific to evaluate and initiate relationships between non-littoral actors and the maritime dimension.

The On-Ground Reality

However, there are a number of obstacles to actively consider continental Asia in the Indo-Pacific discourse. The two most important are geography and geopolitics.

Mongolia for example, is completely enclosed by two actors – Russia and China – who are averse and hostile to the idea of the Indo-Pacific. And, any “counter-BRI” connectivity project envisioned by other regional actors will have to go through their territories. The case of Afghanistan is similar. Divergences in geopolitical interests and ties with actors in the Arabian Sea, particularly with regard to Iran and Pakistan, stays the idea of trans-regional connectivity between Kabul and the world.

The geopolitical obstacle here is the dependent economic relationships that non-littorals in Asia have with Beijing. Mongolia is just one among many Central and West Asian states that have local economies indelibly tied to the political whims of Beijing. During the coronavirus pandemic, a period that saw considerable anti-China sentiment in the international community, Beijing has managed to maintain a level of trust and shared security with many Indo-Pacific states. National vaccination plans are based on the delivery of Chinese vaccines.

There is another reason why the security discourse on the Indo-Pacific is focused on maritime measures – maintaining and preserving the integrity of international Sea Lines of Communication (SLOC) and the respect for territorial sovereignty. In that endeavour, multilateral platforms like the Quad allows members to share historic and strategic advantages in the IOR and Pacific Ocean to counter Chinese expansionism in the Indo-Pacific’s various sub-regions.  On land however, in Central and South Asia, for example the clash in the Galwan river valley last year, Chinese incursions provoke bilateral responses giving it leeway to act with relative impunity.

Conclusion

While there are a number of real obstacles to consider the continental dimension of the Indo-Pacific, Mongolia sets a geopolitical precedent for a comprehensive geographic definition, one that includes both the maritime and continental. From this year on, states participating in the Indo-Pacific now have a reason to approach and include non-littoral actors in the Indo-Pacific.

This precedent also highlights the need to include the continental ‘silk route’ in the Indo-Pacific security discourse. Devising such a definition will be a similar exercise as to the amalgamation of the terms “Indo-Pacific” and “Asia-Pacific” to form the “Indo-Asia-Pacific”; now used at times in geostrategic discourse.

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Time to play the Taiwan card

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At a time when the dragon is breathing fire, India must explore alternative tactics, perhaps establishment of formal diplomatic ties with Taiwan can be a landmark step

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The standoff on the Ladakh border between the Indian Army and the PLA (People’s Liberation Army) continues amid failing talks and casus belli measures being unleashed by the Chinese regime. While the union government and the armed forces make it clear that they will do whatever it takes to protect India’s sovereignty and integrity, precious little has been done on the foreign policy front. While India and its democratic allies which comprise the Quad security grouping declare their intent to form the ‘Asian NATO’, the Quad continues to suffer from indecisiveness which was pretty much evident when the Quad did not even issue a joint statement to condemn China at the foreign ministers meeting held last year, only America publicly called out China.

In such a situation, it is imperative that India explore alternate diplomatic and militaristic routes to tame the dragon.

Recognizing Taiwan

Establishing formal diplomatic ties with Taiwan after recognizing should be vigorously pursuing by South Block. Indo-Taiwan ties date back to the early 1950s when Chiang Kai Shek, the ex Chinese president and former head of state fled to the island of Formosa following the victory of Mao Zedong in the long drawn out Chinese civil war called on Nehru to establish and further ties with Formosa, however Nehru believing that Chiang was nothing but a “peanut” decided to ignore his call, choosing instead to concentrate on building ties with People’s Republic of China (PRC).

Seven decades on, plethora of changes has taken place on the foreign affairs front, while both China and India have developed considerably both militarily and economically the dragon has surpassed elephant to become an economic powerhouse in its own might. It has now embraced aggressiveness to enforce its 5th century vision of the ‘Middle Kingdom’. In such a situation providing legitimacy to the existence of Taiwan is a necessary first step.

Paradigm shift in policy

Establishing formal diplomatic ties with Taiwan will bring about a paradigm shift vis-à-vis India’s foreign policy. It will enforce the idea that liberal democracy is the last word in the battle of ideologies as Francis Fukuyama had visualized in his landmark book ‘The End of History and the Last Man’ and that there is no alternative to human rights and liberties, not even the Chinese model of ‘authoritarian development’. It will be the boldest step that any global leader has taken, not even the mighty US which has no formal diplomatic relations with Taiwan has taken this step.

Recognizing Taiwan will entail a lot of benefits for the mandarins of India’s foreign policy regime- firstly, Taiwan is a robust democracy with a booming economy, it will prove to be an alternative to China albeit in a relatively less proportion, secondly, India can bolster the legitimacy as the leader of the democratic world at a time when the democratic institutions in the US-often regarded as the cradle of democracy has been undermined.

Thirdly, India can get the support of another powerful ally in its attempt to carve out a new supply chain alliance which India-Japan-Australia formalized recently. Fourthly, recognizing Taiwan will make it clear to China that India means some serious business and if the need arises then India will not back down from sending dedicated naval and air assets in the disputed South China Sea region to enforce freedom of navigation principle in the resource rich region. Lastly, the Quad security grouping will be institutionalized which in the near future can even be extended to include new members, it will be the first time that India will be a part of any dedicated military and economic alliance which will deter the aggression of the Chinese war machine in the strategic Indian Ocean and Indo-Pacific Region.

Caveats remain

However the recognition may invite severe ramifications for India. China will be infuriated and can choose to ratchet up tensions with India. India must be extremely careful while dealing with China as China is our second largest bilateral trade partner and a key export partner of India with regard to raw materials and goods. According to a FICCI report, India imports more than 40% of several important goods like the API (Active Pharmaceutical Ingredients), television, chemicals, chips, textiles and many more.

The dragon will as a possible retaliatory measure can activate its propaganda machinery to wage psychological warfare with India. It can also activate its terror financing networks which for years remained a chronic internal security for India in the northeast of the country. China will also collaborate with its ‘iron brother’ Pakistan to try and deter India by intensifying terrorism in the Kashmir valley and elsewhere. Further, China can use its potent disinformation empire to try and peddle fake news about the credibility of India’s indigenous vaccines at a time when the light at the end of the tunnel of a pandemic stricken world has appeared.

Exercising caution

Keeping all the dangers in mind, the Modi government must keep national interests in mind. Despite all the risks, it must work with all the like- minded countries to take own the mighty dragon responsible for unleashing a deadly virus which has wrecked havoc on humanity. For the sake of the free world, India must take the hard step which will reinforce India’s position in cementing its place as the leader of the free world.

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