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China and Hong Kong

Giancarlo Elia Valori

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The real crucial event in China’s current policy, not only for Hong Kong, was the document on “State Security in the Hong Kong Territory”, voted in the recent National People’s Congress at the end of May.

 The document drafted by the National People’s Congress regards above all the Chinese national security and hence the internal security of the Fragrant Harbour, as well as the direct control of the strategic and public security situation of the anti-Chinese political opposition in Hong Kong, and, in particular, the reform of Article 23 of the Basic Law which governs the former British colony.

It should be recalled that two Opium Wars started from there only against mainland China. The opium was cultivated by the British East India Company in its territories in Bengal.

From 1839 to 1842 and from 1856 to 1860, as many as two trade and military conflicts allowed the actual British monopoly of the British and Indian opium throughout the Chinese territory.

Let us revert, however, to Article 23 of the Basic Law, which formally prohibits any act of treason, secession, sedition and subversion against the State of the People’s Republic of China, as well as the theft of State secrets.

Therefore, the Chinese government now acts autonomously, in the territory of Hong Kong, for the defence of its interests. This also paves the way for a wide geopolitical transformation, in some ways more “radical” than the one which Deng Xiaoping carried out in 1978 with the Four Modernizations. It should be recalled that they ended with the most important Modernization for China, namely the military one.

The first attempt to adopt national security legislation in Hong Kong was made as early as 2003, when at least half a million people demonstrated against said legislation – very similar to the present one – proposed and established by China. Later there were several other security bills and, again, other large mass demonstrations.

 Until the demonstrations of April 2019 against the Chinese bill to stop the extradition of PRC’s citizens to the Fragrant Harbour.

At the time demonstrators shouted “Liberate Hong Kong, revolution of our times”.

Certainly China has often stated it sees Hong Kong’ security severely affected by the operations of various and unspecified “powers”, which (undoubtedly) use Hong Kong to penetrate China and later possibly carry out separatist operations (Uyghurs, Tibetans and other riotous and unruly minorities),as well as infiltrations – sometimes military ones – and finally what China calls “harmful operations”.

 Certainly these “harmful” operations also include those by Europe and the United States, which already repeatedly urge many “partners” and companies of the Global Value Chains (GVC) already present in China to move to the small territory of the Fragrant Harbour. This is also an objective cause of the improbable request for an “independent” investigation on the causes of the outbreak and spreading of the Covid-19 pandemic from the Chinese laboratories of Wuhan, Hebei.

A real attack on global economic development, and on China’s economic security, right now that China is quickly transforming its production formula.

China wants to thwart such a move by bringing many production chains directly back into its territory, and by increasing the Chinese strategic (and hence financial and economic) pressure on the U.S. traditional allies in South-East Asia and the Pacific.

 Not necessarily the Southern Pacific only.

However, we will come back also to this point. As can be easily guessed, for China this is a strong point for the direct control of the Fragrant Harbour’s territory.

 However, a historical and ancient condition is no longer in place, i.e. the separation of Hong Kong’s legislation from Great Britain’s and currently China’s.

Obviously the Chinese decision is also a clear heave-ho given to Governor Carrie Lam and to the entire government in Hong Kong, by-passed in a few hours by the very clear Chinese diktat.

China has probably calculated the pros and cons of this move very well.

The cons, which are not insurmountable, include the reduced importance attached to Hong Kong as the only financial and industrial hub in the Chinese territory, which is also fully Westernized and globalized. This also greatly serves the PRC’s direct interests.

 The U.S. interests in the Fragrant Harbour will no longer be safe and this is not a negligible issue: 1,300 medium-large North American companies and 82.5 trillion U.S. dollars in direct investment.

Not to mention the dozens of NGOs that support democratization in Hong Kong against China and the many large global media headquarters in Hong Kong, as well the several operations of infiltration, intoxication and information manipulation (including some financial and industrial ones) that the West has carried out against the People’s Republic of China, starting from the Fragrant Harbour.

 From now on, for the whole West, Hong Kong’s gateway will be closed with seven seals.

Certainly, when the People’s Republic of China feels threatened, it always sacrifices the economy to global strategy.

Certainly Hong Kong has always been China’s financial lifeline, especially in difficult times.

Currently, however, Hong Kong is an irreplaceable global financial hub in Asia. Nevertheless, I imagine that China will soon want to use other less dangerous and, above all, less close channels to connect to global finance.

 Moreover, for the first time since 1992 – and, probably since 1978, the year of the Four Modernizations, if we analyse older time series – the Chinese economy is slowing down considerably due to the outbreak of the Covid-19 pandemic, although with less severe damage than in the United States and in some E.U. countries.

The PRC’s first objective was to resume economic and industrial activities in full swing, while the second one was to make the Fragrant Harbour safe.

 But, once again, there is a pro versus a con: while Hong Kong and, for other respects, Macao and Singapore, have been the destination areas of huge amounts of capital resulting from the corruption and embezzlement of many Chinese elites, Hong Kong’s closure will probably also mark the end of the great hunt that President Xi Jinping and his power group have focused on corruption within the Party and Beijing State.

The old strategy of “Power putting down roots”, as recommended in The Prince by Machiavelli.

Hence President Xi Jinping wants to directly control the Fragrant Harbour, the original site of China’s forced Westernization, from the beginning of the “century of humiliation” (precisely with the first Opium War) to its end, with the PRC’s declaration of independence by Mao Zedong – “the Chinese people have stood up!” -at the Gate of Heavenly Peace Square, in 1949.

The countries that are bound to win in the world arena are those with long and very long memories, while the post-modern and childish forgetful ones are always bound to lose.

Obviously – as was also seen in the very recent National People’s Congress in Beijing – Hong Kong is also a powerful sign for regaining Taiwan politically and economically.

Recently, China has announced a 6.6% increase in the Defence budget from 1.72 trillion yuan (187 billion U.S. dollars) and Li Kekiang, Beijing’s Premier, has made it clear that “China resolutely opposes and will deter any separatist activity seeking Taiwan’s independence”.

 Normally, the Chinese authorities speak of “peaceful reunification”, but this time Li Kekiang omitted the adjective. It was not a distraction.

 In Mao Zedong’s time, the always synthetic and enlightening formula of the Chinese leadership was available for Hong Kong: “long-term planning, full use”. Later the “one country, two systems” formula initially developed by Deng Xiaoping was used, later reaffirmed by the various leaders and so far supported by President Xi Jinping himself.

This Chinese choice on the Hong Kong Security Law, therefore, means only one thing: the end of the old Cold War between the West and the PRC, and hence the beginning of a new phase between China and the United States, which will be “hot” or “cold” depending on the circumstances. Therefore, China has no need in the future – not even financially – to have Hong Kong as a buffer zone with a relatively peaceful, but always radically adverse West.

 Both the USSR and Mao Zedong’s China have always regarded the “Cold War” as an unstable phase in which victory is decided by the amount of arsenals, their doctrine of use and the political will to use them as instruments of credible pressure.

Certainly, Mao knew all too well – and it was one of his most enlightening strategic insights – that the “Cold War” was a paper tiger and those who believed in it could only consume themselves, politically and economically, against the United States and its allies – something that punctually happened with the USSR, which collapsed because it had not renounced in time to a clash impossible to win and which, at most, would give it the “great European plain”, as Hegel and Raymond Aron called it.

Hence China quickly closed its accounts with the Fragrant Harbour, pending the closing of the subsequent operations also with Taiwan and all the other controversial areas, from the Philippines to the South China Sea, from South-East Asia to Malaysia and the Indian Ocean.

The old map – born with Kuomintang, but which was also very popular among Chinese Communist leaders in the 1950s, in which the new Chinese territorial waters beyond the Philippines’ line and throughout the Eastern Pacific could be seen -has not been forgotten at all.

 The United States has obviously “condemned” the Chinese decision, while Great Britain, Australia and Canada have signed a common document expressing “deep dismay” at China’s decision.

Furthermore, the United States already has the Hong Kong Human Rights and Democracy Actof 2019 available – pending the great demonstrations which characterized that year and are currently collectively called the Water Revolution.

 Therefore, by virtue of that Act, the United States could remove the preferential trade status of Hong Kong, possibly with the extension to Hong Kong of the tariff and trade sanctions already in place against China. It should be recalled that these restrictions are worth67 billion U.S. dollars per year.

Hence China’s goals for its actual regaining of the Fragrant Harbour are manifold and complex. Firstly, there is the closure of the financial closed circuit between China and Hong Kong, to be put into effect with the minimum international reaction. Secondly, there is also China’s need to rebuild the central and decisive position of the Chinese economy in the Global Value Chains – a position which, even before the “taking” of Hong Kong, had diminished in importance, but which would currently be fatal, especially if it arrived as a result of the Covid-19 pandemic.

Obviously China also regards Hong Kong as a strategic, unavoidable and essential location for controlling the South China Sea militarily. The Chinese always reason with what De Gaulle called the “two caps”, i.e. the civilian and the military one, which must always be kept together.

 Certainly, the peaceful regaining of Hong Kong is also a breaking point of the current U.S. geopolitics in the region: from the Far East probably to the Middle East, the United States has always thought of a long strategic-military continuity that would encircle Russia and close China in its hardly controllable terrestrial mainland.

Hence China’s full control of regional seas will no longer enable the Russian Federation to depart from the project hegemonised by China, the New Silk Road, while the “small silk road” already planned by Russia, mainly with Japanese but also U.S. capital, will be either integrated into the Chinese one or destroyed.

Finally, as already mentioned, China wants to speed up the process to separate Taiwan from the Japanese and North-American military “umbrella” protecting it.

Here we need to carefully examine the relationship between “Xi Jinping’s policy line” and the 1998 theory of unrestricted warfare.

China, which is aware of not yet being clearly superior in terms of “conventional” or traditional warfare, even if technologically advanced, must absolutely win its total war, its new unrestricted warfare.

Hence another reversal of the Cold War theorem: while, during the whole conventional phase of the Cold War, China depended on Russia for military technology, currently it is Russia that depends on China for orders and financing-purchases – although with its own often excellent and innovative war technology.

Hence if China, which has also acquired – both legally and in other ways – excellent Western, and not only post-Soviet military technology, wants to wage war – even regionally and indirectly –  against the United States, it must necessarily do so in time, before the United States rising up to China’s technological-doctrinal challenge, with the weapons it would like to have and has not yet, instead of those it already has.

Furthermore a war game conducted by the RAND Corporation in early March 2020, demonstrated that, in an armed conflict, the United States would lose both against China and the Russian Federation, obviously considered separately.

As also the U.S. analysts maintain, on the neo-technological – and hence also doctrinal level – the United States lags behind China with regard to strategic and missile precision weapons, hypersonic systems and guidance systems for all theatre ballistic weapons. While the United States is still superior in tactical weapons and in conventional medium-high technology weapons.

 The United States, too, has suffered the conceptual impasse of the “Cold War”.

Also the F35 missile could be an excellent weapon for air supremacy, but – as a U.S. analyst said – it could be bombed to the ground by China or Russia.

 Other always accurate and updated war games, conducted by U.S. analysts, show that the United States would be clearly defeated even in the South Pacific, or by Russia in the Baltic, but certainly China would win in a regional clash to take Taiwan, while both Russia and China are working on the new anti-access/denial area weapons (A2A) quite successfully.

 Meanwhile, President Xi Jinping has shifted his strategic interest from the ground forces of the People’s Liberation Army (PLA) to the PLA’s Navy and then to the Air Force, but especially to the Strategic Missile Force and the more recent Strategic Support Force.

Today there is still a window of opportunity, which will last until the end of 2020, so that China can neutralize the U.S. fleet more than a hundred nautical miles from its coast and from the coast of Hong Kong, Macao and Singapore, as well as neutralize the U.S. missile systems both in Guam and Japan and in the small islands of the South Pacific.

Here is the strategic pendant of China’s choice on Hong Kong’s internal security.

Taiwan could also be the operation that makes the war escalate up to its nuclear level, but it is not said that the Chinese supremacy, still viable in a clash with the United States, decides to get to that point, although, probably, it will strike first and, hence, harder. But it will try to stop operations before the U.S. decision to go for the nuclear blow.

 Nor should we forget the regional war that China waged with India precisely in May 2020, in the area of Lake Pangong Tso and the Galwan Valley, with a quick peace negotiation for controlling Ladakh, a border area still disputed by China, as well as an always very fast operation of the Chinese Forces in the north of Sikkim, again at the beginning of May 2020.

We do not know yet whether all future Chinese operations will be lightning ones.

Hence we need to place the Hong Kong issue within this line of thinking.

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. “

East Asia

Do not panic, we are Chinese: China’s response to the pandemic

Giancarlo Elia Valori

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In Europe, in the United States and in South America, the feared second wave of Covid-19 epidemic is spreading. It is generating not only panic among the public and the institutions, but it is beginning to put health systems and economies under stress. They were starting to recover with difficulty after the impact of the first wave of the epidemic which, between the winter and spring of this year, made the pace of industrial and manufacturing production and productivity rates in the trade, tourism and catering sectors plummet globally, with figures suggesting a decidedly dark future.

In Italy, faced with the increase in infections which, however, does not mean an increase in the number of sick people, the Government has decided to delegate to the Regions’ Governors the power to implement measures to limit individual and collective freedom in the name of a “state of emergency” which has been going on since last March and seems bound to accompany us also in the coming months. For the first time since the end of the Second World War, an ominous and worrying word, “curfew”, has reappeared in official communiqués and news reports.

Over the next few days, in the Campania and Lombardy Regions, it will be forbidden to circulate in the streets from 11pm to 5am, while the purchase of alcohol and the opening hours of shopping centres, bars and restaurants will be restricted. Just to complete an increasingly tragic scenario, on October 20 last, the Italian Health Minister, Roberto Speranza, urged Italians to “stay at home as much as possible” with a voluntary lockdown that seems to be a prelude to the adoption of measures that could bring us back to the situation of last spring with incalculable social and economic damage.

Curfews, lockdowns, targeted or generalised closures are now common practice also in France, Great Britain, Ireland and Spain which, like Italy, have suffered the devastating economic impact of the first wave and could be brought to their knees by the new pandemic emergency.

At this juncture we have to ask ourselves a question: what happened and what is happening in the country where it all began? How are things going in China that in our media, obsessively focused on domestic troubles, is mentioned only superficially and in passing?

“China is Near” was the title of a 1967 movie directed by Marco Bellocchio, that evoked the unstoppable expansion of the Maoist thinking. Today we must say that “China is far away”, encapsulated in the stereotypes developed by Western culture, which prevent us from seriously analysing its political, economic and social evolution and, above all, from drawing lessons from the political and health model that has enabled China to come out of the Covid-19 emergency with its head held high.

On September 22 last, in a blunt speech – as usual -at the United Nations General Assembly, President Trump accused China of being responsible “for spreading this plague throughout the world” and – to further underline the concept -he dismissed the coronavirus as a “Chinese virus”. In the same forum, Chinese President Xi Jinping soberly urged all countries affected by the epidemic to follow his country’s example and “to abide by the indications of science without attempting to politicise the problem”.

Figures clearly demonstrate that the Chinese model is important and worthy of attention. In China, where it all began in December 2019, out of a population of about 1.4 billion inhabitants, the Covid-19 epidemic has so far caused 4,739 deaths out of 90,604 sick people. In the United States, over the same period, out of a population that is about one fifth of China’s, 7,382,194 cases of infection were recorded that led to the death of 209,382 people (data provided by the English medical journal, The Lancet, October 8, 2020).

Great Britain, with a population twenty times smaller than the Chinese population, had to deal with five times more infections than China and ten times more deaths.

These are the figures of October 20 last, referring to the whole of China: 19 cases of illness, all imported from abroad. 24 asymptomatic infections and 403 cases testing positive kept under observation. All, except one, imported from abroad(!). Figures which, as you can see, are globally lower than those recorded since the beginning of the emergency in one single Italian region!

Faced with these figures, it seems difficult to shirk a simple, dual question: how could China fight the epidemic and keep it under control? Hence why do we not follow its example by drawing on its experience?

China was accused of responding late to the first outbreak of the epidemic in December 2019 and notifying late the World Health Organization (WHO) of a new outbreak. Both accusations are completely false.

After the outbreak of the new virus in late December, Chinese scientists isolated and identified the genome sequence of Covid-19 on January 10, 2020 and a few days later, after alerting the WHO, the authorities started to take countermeasures.

China was ready for the emergency: since the SARS epidemic – a virus similar to Covid-19 – had caused just over 700 deaths in 2002, but very serious damage to the economy due to the stop of flights, tourism and exports, the government had given orders to prepare accurate contingency plans to be activated promptly in case of new epidemics. Those plans, which were not prepared and put in a drawer but updated and carefully tested, were activated immediately after the first alarm.

With its 12 million inhabitants, Wuhan – the epicentre of the first infections – was immediately imposed a total lockdown, while in the rest of the huge country the population was urged (without curfews or states of emergency) to follow the most elementary and effective prevention and self-protection measures: social distancing, use of masks and frequent hand washing. It has been said in the West that China has reacted so effectively because it is ruled by an authoritarian regime. Indeed, Confucius has counted much more than Mao for the Chinese. The Confucian social philosophy that not even 71 years of Communist rule have managed to wipe out, with its basic rules of respect for the natural hierarchical order, makes the Chinese a naturally well-behaved, orderly and obedient people. Suffice it to recall that since the beginning of the new pandemic emergency the protests in Hong Kong have decreased until disappearing, while in Europe we are witnessing massive demonstrations with diehard “no-mask” people.

It is, however, the quick response of the Chinese political and health authorities that is at the basis of the undeniable success in fighting the epidemic, at first, and later containing it.

As stated above, Wuhan was immediately isolated and subjected to total lockdown for 76 days, while targeted closures were imposed in the Hubei Province. Throughout the country, 14,000 health checkpoints were set up at the main public transport hubs and, within two weeks since the “official” outbreak of the pandemic, in the city of Wuhan alone 9 million inhabitants were tested.

As one of the main producers and exporters of health equipment, China was not caught unprepared in terms of hospital supplies and individual protection devices: in short, no mask crisis.

While in the United States and Europe, despite the lockdown, people did not seem to be inclined to wear masks (President Trump wore a mask in public only last September), the Chinese immediately followed the authorities’ guidelines with a great sense of discipline. All the municipal security cameras were “converted” to control citizens’ use of masks, while drones equipped with loudspeakers were flown over all areas of the huge country to check the inhabitants’ compliance with the rules. The Xinhua State agency released the footage taken by a drone in Inner Mongolia, showing an astonished Mongolian lady rebuked by the drone saying” Hey Auntie, you cannot go around without a mask. Put it on right away and when you go back home remember to wash your hands”. Probably media embroidered the episode a bit, but certainly in China they did not witness the summertime movida that took place in Rome, Naples or Milan, which is at the basis of the many troubles with which we are currently confronted.

On February 5, 2020 the first Fancang hospital was opened in Wuhan, a prefabricated structure dedicated to the treatment of non-severely ill people, while traditional hospitals were reserved for the treatment of severely ill people. The use of Fancang hospitals (dozens of them were built) made it possible to limit the staying at home of people with mild symptoms, but anyway sources of contagion, within their families – the opposite of what is happening in Italy where the people with mild symptoms are advised to stay at home -and prevent the quick spreading of the virus starting from families. The Fancang hospital network made 13,000 beds available and was dismantled as from May 10, 2020 when the first wave of the epidemic ended in China and was not followed by a second wave. To avert this danger, the Chinese authorities have relaxed “internal” checks and made the control measures for those coming from abroad very strict. At a time when in Spain and Italy the checks for incoming travellers are practically derisory, in China all those who enter the country, for whatever reason, are subject to tests and strictly controlled quarantine.

In essence, China has first fought and later controlled the spreading of the Covid-19 epidemic, with drastic but rational measures and above all understood and accepted by a population educated by Confucius to respect hierarchies and discipline. China can currently be an example for the rest of the world and it is there to testify that with strict, but intelligent measures even the most dangerous situations can be tackled successfully.

It is an example that should be studied and followed without the typical arrogance of the “white man”, also considering an important fact: while the economy of Italy and of its European partners is hardly growing, China’s GDP growth rate is 4.9% higher than last year.

There is much to learn from China both in terms of managing a health emergency and in terms of protecting the economic system.

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East Asia

Suga Faces A Tough Road Ahead Without Enough Political Juice

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image source: japan.kantei.go.jp

Authors: Alexandre Uehara and Moises de Souza

The quantity and dimensionality of problems inherited by a sober and discrete Yoshihide Suga as the first new Japanese Prime Minister in almost a decade will demand that “Uncle Reiwa,” as the statesman is known, employ the skills that he has so amply demonstrated in the past: the ability to negotiate and find elegant solutions to complex questions. Suga’s competence as a negotiator was recognized as an important factor behind the success of the Trans-Pacific Partnership (TPP), which entered into force on December 30, 2018. This agreement—considered doomed to failure after US President Donald Trump signed an executive order withdrawing the United States from the TPP in January 2017—succeeded largely thanks to the vital leadership and tenacity of Japan, with Suga playing a key role behind the scenes. Suga also took the lead during the EU and Japan’s Economic Partnership Agreement signed in 2019, considered by many as another example of outstanding negotiating performance. With such a resumé, these skills and experience proved critical in Suga’s victory in the Liberal Democratic Party (LDP) leadership race, enabling him to garner support from a wide array of sources, ranging from LDP Secretary-General Toshihiro Nikai to various factions within the Komeito, a partner in the coalition government.

The question now is whether his past performance can be replicated as Suga targets the current challenges that so recently have fallen into his lap. He is taking the helm at a delicate moment for Japan, with uncertainties that will force him to show, domestically and abroad, what kind of leadership Japan will enjoy after a larger-than-life figure like Abe Shinzo steps down. And these challenges are coming from all quarters: the economy, public health, and regional security, just to name a few. Each of them has the potential to shape the future of the nation and the reputation of its prime minister, and certainly Yoshihide Suga is no exception. On top of that, legacy problems remain. On the one hand, the implicit promise of continuity with Shinzo Abe’s policies played a crucial role in winning the LDP the elections: on the other, this very factor is an element of concern, since opinion polls were already detecting signs of decline in the popularity of Abe’s cabinet. If Suga has any political ambition left, he cannot afford to make any mistakes in the short- and medium-term.

On the domestic front, there are two important and interrelated problems: The COVID-19 pandemic and the upcoming Tokyo Olympic Games. These coterminous phenomena essentially represent a contradiction between uncertainty and reality. While few in Japan are clear about whether the current pandemic will turn into an ongoing ebb-and-flow in terms of virus contagion rates, the economic impact as a result of the response measures is already real. The profound effects have been translated into a new period of recession this year, an experience with which the Japanese a real ready very familiar, given their recent past. To make matters worse, the medicine intended to heal the wounds of economic recession was neutralized by the virus. Operating under the old adage that you have to spend money to make money, Tokyo expended over US$5 billion, with plans to spend US$2 billion more in 2020,to prepare the city to host the Olympic Games. Prospects showed that these investments would pay off. According to a report published in June 2020, it was projected that the Olympics would impact the Tokyo economy alone to the tune of almost US$190 billion, with a spill over effect on the overall Japanese economy of nearly US$300 billion and a potential impact of 0.2% of its GDP. Based on the same prospects, Japan signed an accord in 2013 with the International Olympic Committee (IOC), assuming total responsibility to bear all the costs alone in the (at that time improbable)event that the games would have to be postponed. Well, in what one might call the Forest Gump Effect, to wit: “life is like a box of chocolates: you never know what you’re gonna get,” the games were indeed postponed. Investors, according to reporting by Bridgestone, reported losses of around US$3 billion so far as a result of the postponement. It also affected the IOC, which registered losses of more than US$800 million. For Japan’s economy, Goldman Sachs is calculating losses of about US$5.1 billion in terms of domestic consumption alone. Suga will have to find a solution for this imbroglio, which even Abe could not or did not have time to figure out.

In the international arena, Suga—like all Japanese Prime Ministers before him—will have to walk a tightrope, executing a delicate balancing act between Beijing and Washington. So far, his biggest challenge is to find his place amid the rising tensions between Japan’s two most important trading partners. On paper, the logic is simple: Tokyo has developed initiatives to strengthen its alliance with Washington concerning security, without hurting its bilateral trade with Beijing. In recent decades, the latter has become increasingly economically important to Japan. In practice, this is not an easy job for two reasons: First, the erratic temperament of Donald Trump and the tendency of his administration to play hardball even when negotiating with partners. The trade deal negotiated in 2019 stands as a case in point: Essentially, Japan walked away from the negotiating table with a commitment to give the United States access to its agricultural market in exchange for a vague promise that the Trump administration would not consider Japanese auto imports a “national security threat.” On top of that, Trump made it clear that he still wants Japan to pay for the American military bases on Japanese soil.

The second reason comes from Japan’s powerful neighbour, with an increasingly assertive China under Xi Jinping. In November 2019, after China proudly displayed its new ballistic and hypersonic cruise missile system, Taro Kono (then foreign minister and now the minister for administrative reform and regulatory reform) publicly demanded that Beijing make its military budget and strategic goals transparent, to avoid raising the level of alarm and anxiety in the region. In addition, a few weeks after taking the center seat, Suga had to deal with the presence of two Chinese ships in the disputed waters of the East China Sea—a practice that has been taking place more and more frequently since Xi became chairman of the Chinese Communist Party in 2012. It is exactly these episodes of Chinese assertiveness that motivated Yoshihide Suga to choose Vietnam and Indonesia as the destinations for his first official diplomatic trip as prime minister. As much as Abe did, Suga intends to strengthen security ties with both Southeast Asian nations. This, tempered with a degree of restraint in the use of strong anti-Chinese rhetoric, is intended as a clear signal to Beijing: the rules of the game haven’t changed, with or without the presence of Abe Shinzo.

Using the same logic, Suga did not alter the basis of Japan-Taiwan relations that developed so fruitfully on Abe’s watch. In fact, besides working for close relations with Taipei, Abe also developed a friendship with Taiwan’s current President Tsai Ing-wen. Suga’s decision to appoint Abe’s brother, Nobuo Kishi, as defense minister was a clear signal to China that, with regards to Taiwan, it will be business as usual in Tokyo despite the transfer of power. It a secret to no one in Japan (or in China, for that matter) that Kishi enjoys close ties with Taiwan, a place he has visited several times over the years, including meetings with President Tsai, as representative of the ruling Liberal Democratic Party (LDP). The last visit took place on the occasion of the funeral of former Taiwanese President Lee Teng-hui in August 2020. Such proximity makes Kishi the most trustworthy channel of communication between conservative Japanese leaders and Tsai, as well as with the Taiwanese elite itself. In response to Nobuo Kishi’s appointment, the Chinese Ministry of Foreign Affairs spokesman Wang Wenbin said in a statement that the new minister of defense of Japan must “abide by the one-China principle and refrain from any form of official exchanges with the Taiwan region.”

Few specialists in Japan believe that Yoshihide Suga will have as long a mandate as his predecessor Abe Shinzo. Despite being technically qualified, Suga still lacks enough political juice to retain the position of prime minister beyond the general elections that must take place in one year’s time. The tide may eventually turn in favour of Suga-san, depending on how well he and his new cabinet manage the daunting challenges that they inherited from the previous administration. More than mere negotiation skills are needed, however, and there is no doubt that Suga will have to make some tough decisions that will come to define, in a large measure, his political future post-2021.

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East Asia

Nepal-China Boundary Treaty: An example of peaceful Himalayan frontiers

Birat Anupam

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image source: Chinese Embassy in Nepal

Chairman Mao: How is everything with Your Excellency? Have all the problems been solved?

King Mahendra: Everything is settled.

Chairman Mao: Fair and reasonable?

King Mahendra: Yes. We all agree.

Chairman Mao: It is good that we agree. There is goodwill on both sides. We hope that will get along well, and you hope we shall get along well too. We do not want to harm you, nor do you want to harm us.

King Mahendra: We fully understand.

Chairman Mao: We are equals; we cannot say one country is superior or inferior to the other.

King Mahendra: We very much appreciate the way of speaking.

This was a snippet of the candid conversation between founding father of People’s Republic of China Mao Zedong and Nepal’s the then king Mahendra on the historic Nepal-China Border Treaty day of 5 October 1961. A book titled ‘MAO ZEDUNG ON DIPLOMACY’ has detailed this conversation. The conversation is mentioned under the topic of ”Talk with Nepal’s king Mahendra Bir Bikram Shah Deva and the queen’ (page 366 and 367) in the book.

This famous diplomatic book of Mao was compiled by The Ministry of Foreign Affairs of the People’s Republic of China and the Party Literature Research Center under the Central Committee of the Communist Party of China and was published by Foreign Languages Press Beijing on 1998.

This conversation, from the verbatim records, speaks volumes about the level of trust and the height of friendship between two neighbors Nepal and China.

Nepal-China boundary: An example of speedy settlement

Nepal and China boundary settlement has reached 59 years of its signing ceremony at Beijing. It is an extraordinary example of speedy settlement. Nepal and China formally established diplomatic relationship on 1 August 1955.

Few years later on 21 March 1960, Nepal and China signed Boundary Agreement. Nepal’s first democratically elected Prime Minister Bishweshwar Prashad Koirala signed it during the official China visit. The friendly diplomatic dialogue of Koirala and Mao is also included in the book ”MAO ZEDUNG ON DIPLOMACY’ under the topic of ”The Sino-Nepal Border Must be Peaceful and Friendly Forever.”  

On 5 October 1961, Nepal and China signed Boundary Treaty at Beijing during the state visit of the then king Mahendra. The 1414-kilometer-long border treaty protocol was finally inscribed on 20 January 1963.

The adjustment was made on equal footing by land-swapping with Nepal gaining more land than it gave. According to a working paper presented at ”International Cross-Border Conference on Border Regions in Transition (BRIT)-XII Fukuoka (Japan)-Busan (South Korea) 13-16 November 2012” by Nepal’s former Director General of Survey Department and the author of the book titled ‘Boundary of Nepal’, China had given 302.75 square kilometer more land to Nepal.

The paper says, ”the adjustment was made on the basis of ‘give’ and ‘take’ and the inclusion of some pasture land within Nepalese territory. With this principle, Nepal had given 1,836.25 square kilometer of land to China and Nepal had taken 2,139.00 square kilometer, as it has been added 302.75 square kilometer of Chinese territory into Nepal.”

Nepal-China border settlement is an excellent example of speedy border settlement compared to Nepal’s southern neighbor India. Since the formal diplomatic engagement of 1955, it just took around eight years to ink full-fledged technical border adjustment between Nepal and China.

Tragically, Nepal and India are at odds over the border demarked by 204-year-old Treaty of Sugauli. The recent issue of Lipulekh, Kalapani and Limpiyadhura and new political map of Nepal unanimously approved by lower and upper houses of the federal parliament point to the long-pending friendly border settlements between Nepal and India.

Media myths on China’s encroachment of Nepal’s territory

Nepal and India has not resolved much of their border tensions since long. Lately, there are some media reports, mainly from India, about so-called Chinese ‘encroachment’ of Nepal’s territory. There was report about missed pillar number 11. However, it came out to be untrue with the finding of the pillar.  After field inspection and technical studies, Chief District Officer of Humla district, Chiranjibi Giri, made it clear that the rumored border encroachment from China was not the fact.

Similar incident was reported few weeks ago when Nepal’s leading daily Kantipur claimed China’s encroachment of Nepal’s territory citing unverified Ministry of Agriculture, the ministry that has nothing to do with border issues. However, after formal clarification from Nepal Government, the report was found to be false and the biggest daily of the nation apologized.

There is a section in Nepal that desperately wants to draw parallel between factual Nepal-India border tensions with fictitious Nepal-China border rows. However, so far, this mission has proven wrong at times.

Nepal does not have any serious border tension with China. The only concern Nepal has it about China-India agreement to ‘boost border trade at Quiangla/Lipu-Lekh Pass’ as said in the 28th point of the  joint communiqué issued by visiting Indian Prime Minister Narendra Modi and his Chinese counterpart Li Keqiang on 15 May 2015.

Nepal has diplomatically protested about this agreement by two countries as Lipulekh falls in Nepali territory not only based on the Treaty of Sugauli of 1816 but also the Nepal-China Boundary Treaty of 5 October 1961. Given China’s generosity and friendliness towards Nepal, it is not a big issue to address. Nepalese citizens are optimistic on China’s support on Nepal’s sovereignty over Lipulekh.

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