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The implementation of the BRI project at sea: South Maritime and Arctic Silk Roads

Maria Smotrytska

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In 2013, China started to launch a global system of transport corridors that should connect China with the entire world – the countries of Central Asia, Europe, the Middle East, Africa, Latin America, and Oceania. Within the Framework of the Belt and Road initiative (BRI), it was planned to build roads and railways, open sea and air passages, lay pipelines and power lines. Thus, China decided to involve 4.4 billion people – more than half of the world’s current population – in its orbit of influence through the new geopolitical initiative.

Launching BRI land corridors, the PRC created an additional branches of the project – the “Maritime Silk Road of the XXI century” (MSR) and the “Polar (Arctic) Silk Road”. On March 29, 2014, in Nanyang city (Southeast Asia) was hosted a Symposium of East Asian States, dedicated to building the community of China and the ASEAN countries and implementing the regional “MSR project in the XXI century”, proposed by the Chinese President in October 2013 at the Council of people’s representatives of Indonesia and during the 16th China – ASEAN summitin Brunei.

The initiative to create alternative routes was not proposed by chance, since they all have a clear focus:the main land BRI corridors (“New Eurasian Land Bridge”;“China – Mongolia – Russia Corridor”;“China – Central Asia – West Asia Corridor”;“China – Indochina Peninsula Corridor”;“China – Pakistan Corridor”;“Bangladesh – China – India – Myanmar Corridor” (see Figure 1)) are generally aimed at Central and Western Asia, Central, Eastern and Western Europe, and the “Maritime Silk Road” – to South – East Asia and Africa, “Polar Silk Road”potentially covers northern part of the BRI, connecting China with Europe.Thus, China’s “One Belt, One Road” strategy is aimed to improve China’s diplomacy with countries all across the world.BRI blueprint encompasses over 60 countries, which account for 60% of the world’s population and a collective GDP equivalent to 33% of the world’s wealth. It focuses on connectivity and partnerships with neighbouring countries and builds upon existing multilateral mechanisms.

The “MSR”, as well as the land corridors, were planned along an ancient trade route: from Guangzhou in China along the coasts of Vietnam, Thailand, Malaysia, Singapore and Indonesia, past to the Red sea (with branchesto the Persian Gulf and Africa), through the Suez canal in the Mediterranean. Before the beginning of the Ukrainian crisis, the Chinese considered Crimea as a separate entry point to Europe – a deep-water port was planned to be built in the Western part of the Peninsula. In addition, Russia and China discussed another route – the Arctic one: it was mentioned about the possible inclusion of the Northern sea route development project (NSR) into the BRI strategy.

fig.1

China currently does not have access to the Arctic ocean. Thus, with no physical access to the Arctic, Chinese strategists have long been concerned about the country’s chances of becoming an Arctic power.

In June 2017, the state Committee for development and reform and the State Oceanographic administration of China named the Arctic as one of the directions of the “One belt, One road” project. The “Concept of cooperation at sea within the framework of the BRI”refers to the need to involve Chinese companies in the commercial use of Arctic transport routes.

Soon after Russia has signed a Memorandum of understanding with the Chinese Oceanographic authority, aimed at expanding international cooperation in the field of Arctic and Antarctic researches. The same documents were signed with China by Norway, the United States, Germany, Chile and Argentina.

There are three potential routes across the Arctic: the Northeast passage around Eurasia, the Northwest passage around North America and the Central Arctic ocean route. For China, they offer a shorter and cheaper alternative to current shipping routes, which reach major markets in Europe via the Indian ocean and the Suez canal.

In practice, Yong Sheng, owned by COSCO Shipping, was the first Chinese cargo ship to master the Northern sea route (Northeast passage) in 2013. After a trial voyage, the Chinese carrier COSCO showed interest in further using this project. However, analysts expressed doubts about its profitability. The main problems were that when traveling along the Northern sea route, ships of lower cargo capacity have to be used, the route is seasonal, and the travel conditions are extreme.

In the summer of 2017, another six Chinese vessels took this route. In September, the Chinese research vessel Xue Long made its first Northwest passage voyage along the Northern coast of Canada, reducing the travel time from New – York to Shanghai by seven days compared to the route through the Panama canal.

It should be borne in mind that China’s position is quite convenient in geopolitical terms : it is one of the observer States of the Arctic Council. In total, there are eight countries in the region (Canada, the United States, Denmark, which has access to the Arctic via Greenland, Norway, Russia, Iceland, Sweden and Finland) and 13 other countries that do not have access to the Arctic, but whose using the function of monitoring the relations of the countries in the region. Thus, China is actively using its status with the development of the Arctic programme.

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It should be empathized that Beijing’s position on the development of the Arctic route supports the view that both routes contain potentially very profitable transit points that can shorten the path between Asia and Europe, not to mention between Asia and parts of North America.

In January 2018, the state Council of China published the first “White paper on China’s Arctic policy”, which states that Beijing is interested party in Arctic Affairs. It was noted that China intends to create,jointly with other States, the sea trade routes in the Arctic region within the framework of the “Polar Silk Road initiative”. Thus, it was decided that the Polar Silk Road will be part of the broader Chinese “Belt and Road” program, creating sea trade routes and strengthening trade relations with different countries in the region.

Due to the fact that other Trans – Eurasian sea transportations may be extremely unstable in the long term, especially in terms of security, the Chinese authorities have shown interest in the Northern, alternative sea route.

Analyzing the logistics of the existing route through the Suez canal and the Mediterranean sea, even taking into account the planned expansion, it is easy to see that it is already overloaded. Secondly, the middle East is still azone of instabilityand its infrastructure requires large financial investments.

Another potential route, through Central America – the Panama or Nicaraguan canal – is also not entirely rational in terms of reconstruction and big amount of investments. It makes sense to use it for Asian – American trade, which is also planned to be improved in terms of logistics and infrastructure.

Based on this, it can be noted that the two remaining Polar routes have begun to arouse real strategic and long-term interest on the Chinese side(see Figure 2).

The first of these routes is the American Northwest corridor (Northwest passage), first passed by water byRoald Amundsenat the beginning of the last century, but it also retains certain problems. First of all – with Canada, which believes that the Northwest Passage passes through its territorial (internal) waters. The second problem is the US position: the country’s authorities do not want to have a trade highway under the control of such strategic competitor as China.

The second alternative is the Northern sea route, which runs North of the Russian Federation (see Figure 3). Due to China’s increasing interest in developing the logistics of the Northern route, the Russian government has set a high bar for a large-scale Arctic project running along the coast of the new sea route, which is becoming more accessible to navigation as a result of climate warming and ice melting. The head of state outlined a large-scale task: to reach the level of 80 million tons per year by 2025.

In addition to the development of the construction of a new port in Russia’s Arkhangelsk (the capital of the region on the White sea is one of cities in the Far North), construction of a new port and a railway line has begun, which should connect with one of the branches of the Chinese BRI.

fig.3

Thus, it can be noted that today the Arctic opens up new prospects for trade between Europe and Asia. The North, which has huge reserves of hydrocarbons, is of interest not only to Western countries, but also to China. The use of sea routes and natural resources in the Arctic can have a huge impact on the energy strategy and economic development of China, which is one of the world’s leaders in foreign trade and is the largest consumer of energy in the world. For example, the Northern sea route will allow China to deliver cargo to Europe by sea faster than the 48 days (that it takes on average) to travel from the Northern ports of China to Rotterdam via the Suez canal. Last year, the Russian Arcticgas tanker “Christophe de Margerie” reached South Koreafrom Norway without an icebreaker escort, and the journey took only 15 days.

Thus, the Northern sea route will allow China to deliver cargo to Europe faster by sea, reduce the route by 20 – 30%, and save on fuel and human resources. Given that 90% of Chinese goods are delivered by sea, the development of the Arctic silk road promises Beijing serious savings and profit growth .

In addition to gaining possible economic advantages, China hopes to increase its energy securitythrough Arctic trade routes. Currently, most of the fuel imported by the Asian giant crosses the Strait of Malacca, which connects the Indian ocean with the South China sea.

Thus, it can be traced that China is interested in Arctics Arctic natural resources. This region contains a fifth of the Earth’s natural resources. However, even if this is the case, China’s interest in Arctic underground storerooms is rather long-term and the calculation is made for the remote future. The problem is that China is still dependent on foreign technologies for offshore drilling, even in the warm seas surrounding it. Technologies for extracting natural resources in Arctic waters are much more complex, and China does not have enough sufficient experience in this area.

Also, analysing the logistics of BRI routes, it can be seen why China is getting more interested in developing alternative North corridors :

The transport routes of the “Silk Road Economic Belt” project cross the Eurasian continent in the middle, the route of the “MSR of the XXI century” project runs along the South and there is no Northern water route yet. The main value of the Arctic sea route is that the regions through which it passes are relatively calm and stable. It should be noted that the “Economic Belt” crosses many countries with high conflict and crisis potential (Central Asia, Middle East, East Europe). The “MSR of the XXI century” runs through the South China sea, South – East Asia, and the Indian ocean  – the region which has similar problems. Also in terms of infrastructure development these roads may cause certain risks, connected with big number of participants, different level of infrastructure capacities of countries and different legislative obstacles. Thus, the Northern route may act as a more stable alternative that it can become a serious incentive that will contribute to the Eurasian economic integration.

The economic component of Arctic direction of the BRI is no less important. The Chinese expert reminded that the routes through The Northwest passage and the Northern sea route would save Chinese companies time and money on their way to Western countries. Taking into account the melting of ice in the Arctic ocean, the Northern sea route can become an alternative to the main transcontinental route that runs through the southern seas of Eurasia and further to Africa via Suez canal. Thus, the passage of a cargo ship from Shanghai to Hamburg along the North sea route is 2.8 thousand miles shorter than the route through Suez canal.

The modern logistics projects such as “Arctic Silk road” and“MSR of the XXI century” connect China with other countries of South – East Asia, the Middle East, East Africa and some EU countries through sea trade routes, such as such in the Red sea. Thus, it can seen that three new transport corridors will connect Europe with the Russian Federation, Central Asia, China, India, Pakistan, Iran, Korea, Japan, Vietnam and Thailand. Analysing “MSR” logistics it becomes clear that the project is designed to connect three continents into a single transport system: Europe, Asia and Africa. It is no secret that many of these countries have a lot of political differences, but the benefits that the implementation of this large-scale project promises can make them forget about old claims to each other.

One of the long-term prospects for the development of the BRI project is the creation of free trade zones with countries participating in the initiative. The result of such multi-countries collaboration may be the emergence of a large-scale free trade zone from the North – Western provinces of China, Central Asia, to Europe and Africa. About three billion people live on the project’s path. In this case, we are talking about the “mega – market”, and, of course, about the “mega – potential”.

PhD in International Politics, Central China Normal University, Wuhan, the P.R.of China Research Associate , Ukrainian Association of Sinologists

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Will China bubble burst owing to authoritarianism?

Amjed Jaaved

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In his book The Age of the Economist, Daniel R. Fusfeld tells how economics governs our life today. In today’s market or quasi-market economies, no country can live in economic isolation (sakoku). India, USA and their `satellites’ are trying to isolate China in economic field. Already, they have hung isolationist Financial-Action-Task-Force Sword of Damocles over China’s all-weather ally Pakistan’s head. Through its economic relations and defence purchases, India scuttled Pakistan’s effort to draw world’s attention to Kashmiris in prison. India’s defence ministry approved purchase proposals amounting to an estimated Rs 38,900 crore. Heretofore is a bird’s-eye view of her shopping itinerary. Procurement of 36 Rafales and 12 Su-30 MKI aircraft and 21 MiG-29.  Upgrading Indian Air Force’s existing MiG-29 aircraft. The MiG-29 procurement and upgradation from Russia will cost Rs. 7,418 crore. Producing the Su-30 MKI at the Hindustan Aeronautics Limited will cost Rs. 10,730 crores.

In Sri Lanka, india, through its underhand machinations, managed to remove Mahinda Rajapaksa from office 2015. Rajapakse had leased out strategic Hambantota port to China and allowed docking Chinese submarines in in Sri Lanka.   Now Sri Lanka has handed over control of Humbantota to India. India gave Sri Lanka $45.27 million aid to develop KKS harbour (Jan 12, 2018).

India extended 2.1-billion Nepalese Rupee (NR) aid to Nepal as reimbursement of the first tranche of housing support to 42,086 governments of India- supported beneficiaries in Nuwakot and Gorkha districts. It pledged Nepal US $1 billion aid and soft loan (25%) for Nepal’s post-earthquake. India bears pension liability of Gorkhas equivalent to Nepal’s annual budge. But, offended at occupation of Kala Pani territory by India, Nepal enacted law to affirm its territorial sovereignty. Nepalese prime minister Oli  is tottering because of India’s underhand effort to topple him.

India has no border at Doklam with China.yet it, like a super power jumped in `at Bhutan’s request’ to stop China from constructing a road there. It  pledged to contribute Rs 4,500 crore to Bhutan’s twelfth five-year plan (2018 to 2023). It completed Mangdhechu Hydroelectric project and Ground Earth Station for South Asia Satellite and launch of RuPay card in Bhutan. Besides, it committed assistance of Rs 4,500 crore for implementation of development projects and Rs 400 crore for transitional Trade Support Facility during Bhutan’s 12th Five Year Plan (2018 – 2023). Under the 12th 5-Year Plan, 51 large and intermediate projects and 359 Small Development Projects (SDPs)/High Impact Community Development Projects (HICPDs) are being carried out. India’s commitment to the 12th Plan constitutes about 14.5 per cent of the Plan outlay which is around 38.75 per cent of the capital outlay and 71 per cent of the total external assistance.

To Bangladesh, India extended three $8 billion loans. A total of 1.16 Gigawatts of power is now being supplied by India to Bangladesh. The increase, in the reckoning of the Prime Minister, signifies a “quantum jump from megawatts to Gigawatts and is symbolic of a golden era” in bilateral ties. Markedly, Mamata Banerjee has pledged to raise the power supply to Bangladesh to 1,000 MW. Though electricity will not be a substitute for Teesta water, the plan to boost power supply is on anvil.Bangladesh is however annoyed at dillydallying at Teesta Accord, and India’s inability to brief her about Glawan situation (rebutted by India).

Launching the ‘Act Far East’ policy, India’s Prime Minister Narendra Modi announced (September 5, 2019) that India will give a line of credit worth US$ 1 billion to Russia for the development of the Far East.India provided Lines of Credit worth $ 96.54 million to Niger for projects in transport, electrification, solar energy and potable drinking water. It granted $15 million to Niger for organising African Union Summit.

India and Japan have launched their own joint initiative in the shape of Asia-Africa Growth Corridor (AAGC) vis-a-vis China’s Belt-Road Initiative for undertaking development and cooperation projects in the African continent.

India’s knee jerks to Malaysia and Turkey: Malaysian prime minister Mahathir Mohammad had said in September last that India had “invaded and occupied” Kashmir. He was joined by Turkey’s President Recep Tayyip Erdogan, who said that India had virtually imposed “a blockade” on Kashmiris.Their views on Kashmir and the Citizenship (Amendment) Act (CAA) irked India.India punished

Turkey by not allowing it to bid for construction contracts. Import of palm oil from Malaysia was truncated.

Will China’s economic bubble burst for lack of institutions and authoritarianism: The spectacular economic growth in China in the past four decades has inspired a large strand of research to understand China’s unconventional growth path.  China is expected to suffer a sudden economic collapse because of lack of inclusive institutions, debt policies, and authoritarianism.  Daron Acemoglu and James A. Robinson in their book Why Nations Fail argue that without economic institutions particularly private property , and competition, nations fail to promote economic growth and alleviate poverty. Powerful people should not seek to grab complete  control over government  undermining broader social progress. It is freedom that makes people rich. Without political change, even sensible economic ideas and policies are doomed to fail.

To strengthen his rule, Xi Jinping has allegedly assumed an absolute control over all the institutions of country in guise of national rejuvenation and reforms.

Norwegian political scientist stein Ringen in his book “The perfect dictatorship: China in the 21st Century calls XI’s rule as “Controlocracy”.  Xi chairs, roughly, eight of the leading small groups including national security commission. He also handles internal security directly, thereby reducing any possible chance of mutiny.Tai Ming Cheung a professor at the school of global policy and strategy at UC San Diego alleges “No other Chinese Communist Party leader, not even Mao Zedong, has controlled the military to the same extent as Xi does today. Mao had to share power with powerful revolutionary-era marshals.” To show how “hands-on” he is, Xi has taken the new post of commander-in-chief of the PLA Joint Battle Command.

This view is debatable. Discussion papers are included in in Allen, Franklin & Qian, Jun & Qian, Meijun, 2018. “A Review of China’s Institutions,” CEPR Discussion Papers 13269. Their paper focuses on the recent development of China’s institutions, financial markets, innovations and government-business relations in the context of their roles in supporting China’s growth. Alternative financing channels and governance mechanisms, rather than the markets and banks, continue to promote growth in the most dynamic sectors of the Chinesed economy.

Pro-China view: Tom Orlik, chief economist – Bloomberg Economics and David Dollar, senior Fellow, Foreign Policy, Global Economy and Development, John L. Thornton China Center, do not agree. They trust China would tide over economic crises through out-of-box thinking and ingenuity of mind. Klaus  Muhlhahn in aking China Modern: From the Great Qing to Xi jinping highlight role of institutions in China’s rise. During the nineteenth century, China suffered humiliation of defeats in the Opium Wars at the hands of Western imperialists. Like a sphinx, China rose from ashes to baffle the world, we live in, through its flabbergasting if not unprecedented economic growth and participation on the geo-political state as a powerful player.

Charismatic leaders (Sun Yat Sen, Mao to Xi Jinping) did contribute their effort in transforming China. China’s rise, per official line began with Deng Xiaoping’s rule in 1978. But a dispassionate look at history reveals that China’s recovery was in the making for about a century. Historical legacy, cumulative experience a desire to see a better tomorrow and resilience in overcoming adversity contributed to China’s emergence as a conundrum or a miracle during twentieth or twentieth century.

China’s rise is not an overnight exploit or legerdemain of some leaders. Its present status is cumulative product of its institutions in early modernity or late imperial period (mid-seventeenth through eighteenth century). Beginning in 1644 during the Qing dynasty reign, many core institutions were developed and the empire achieved its zenith. The social and cultural institutions of this period account for China’s brilliant trajectory into nineteenth and twentieth century. The institutions of yesteryears, about three centuries , relate to key areas of government economy sovereignty, border security and exploitation of natural resources.

Inference: In cahoots with USA, India wants to get China declared a pariah state. The aim is to impose economic sanctions, or aid or trade embargo on China. The USA uses a flexible format to dub or delete a country as axis of evil, money-laundering conduit, sponsor of terrorism or pariah (Tamil paraiyar, outcastes), or rogue (Iran, Sudan, North Korea, Cuba, Venezuela). Ottoman Empire was persecuted as an outcast by European States since the Treaty of Westphalia in 1648 until the nineteenth century on a religious basis’.

Deon Geldenhuys. points out multifaceted criteria for declaring a state pariah_ having ‘artificial borders’ (Iraq), siege mentality, anti-West sentiments and desire to subvert the international status quo, or not being a considerable `world power’(“Pariah States in the Post-Cold War World: A Conceptual Exploration,  March 5, 1997).  So far, China has eluded pariah label proving it to be a `world power’.

Why India is hostile to China? Indian prime minister Modi himself told an all-party conference, “Neither have they [Chinese] intruded into our border, nor has any post been taken over by them (China)”. Even former defence minister AK Antony and former foreign secretary Shyam Saran denied China had taken over 640 sq km of Ladakh territory. Even, “The Indian army denied that Ladakh had shrunk. Change in the river course was cited as a reason for the loss of 500-1,500 meters of land annually”. Then, why the storm in a teacup.

Talk of Chinese bubble bursting appears to be a propaganda tip.

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China’s new strategic positioning

Giancarlo Elia Valori

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 While China is “narrowing” its production lines at national or international levels, a very important signal is the new relationship established between Turkey and the United States to replace China as a supply chain.

 Obviously the new “cold war” between China and the United States cannot but create good opportunities for countries such as Turkey which aspire to establish their hegemony over Central Asia and hence to reduce China’s weight both in global and regional trade.

 This is the price that Turkey pays happily and without particular problems to the United States for affording its autonomous policy in the Maghreb region, in the Eastern Mediterranean, in the Balkans and in Central Asia, up to supporting the Xinjiang Muslims in China above all to nip the Chinese Belt & Road Initiative in the bud.

 Meanwhile Botas, the state-owned distributor of Turkish natural gas, has proposed the construction of a pipeline from its Northern Turkish coast to Nakhicevan, Armenia, so as to reduce Armenia’s imports from Iran and thus slowly distancing from Iran. This is music to American ears.

 Therefore, Erdogan’s Turkey also bets on the new “cold war” between the United States and China, thus proposing itself as a third wheel and hence as the basis for the technical and commercial replacement of the production networks from China itself to the area controlled by Turkey.

There is a “but”, however: Turkey has a public deficit of 5.6 billion U.S. dollars (according to April 2020 data), but so far only Chinese capital and funds have arrived to support a 400 million swap between the renmimbi and the Turkish Lira.

 A Chinese company bought the Kumport Terminal, on the Sea of Marmara, for 940 million, and in November 2019 Turkey saw the first train arriving from Xi’an, through the Maramay tunnel built and funded by China, which allows to have a non-stop line from China to Europe. An asset not to be overlooked.

 The Turkish e-commerce platform, Trendyol, was later acquired by Alibaba but, as all Turkish finance experts say, it would require a further and probably strong devaluation of the Turkish lira which, however, needs substantial “fresh” investment from abroad.

Therefore, it is unlikely for an economy such as Turkey’s to take harsh and definitive action against Chinese interests.

Nevertheless, what does Donald J. Trump’s America really want from China?

 The US Presidency’ Strategic Approach to China, published on May 26, 2020, maintains that the threat posed by the CPC to U.S. economic, military and strategic interests, as well as to its “values” is a primary danger.

 If we look at the history of such statements, only in the days of the harshest “Cold War” with the USSR were such terms used.

As to economic competition, the United States accuses not the State, but directly the CPC, of overtly “protectionist State policies that have harmed American workers and businesses”.

 With damage caused also to global markets, the environment and global trade law. Nevertheless,the sanctions imposed by China on U.S. goods in 2019 were anyway adopted by the WTO, whose negotiation system has been called into question by the United States itself.

 In fact, Trump’s America accuses particularly the CPC of “taking advantage of its WTO membership to become the world’s largest exporter, but systematically and harshly protecting its domestic market”.

What is the United States doing? The U.S. real and deep accusation is against the Belt & Road Initiative: the United States interprets this great commercial-strategic operation as an attempt to reshape the world market according to the internal needs of the Communist regime in China.

 Moreover, as the United States always maintains, China wants to use not the international networks, but its own courts, as arbitration courts. Is it true or false? Obviously there is the ICC, but other courts of reference are also formally possible, based on UN-type commercial law.

As to the Chinese challenge to American values, the U.S. document states that “China is engaged in an ideological competition with the West”.

The U.S. current idea is based on President Xi Jinping’s old statement (dating back to 2013) whereby China must prepare for a “long phase of cooperation and conflict” with the capitalist West, and it is always stated that “capitalism is dying and Socialism will triumph”. It could not be otherwise considering his Marxist background and ideas.

 Obviously so, since President Xi does not certainly come from a salon in Manhattan.

Moreover, the United States never wants China to project itself as a world leader and a country of great global influence. Here again it wants the fight against corruption to stop, since for the United States it was only and exclusively a way to eliminate president Xi’s opponents.

Is it true? Yes, but obviously not only so. One and a half million corrupt people punished by the State, but many of them are real, while others are certainly “enemies” of President Xi’s policy line.

The U.S. Presidency, however, is mainly afraid of the Chinese Military-Civil Fusion and hence of the commercial-security blockade that, in the very long run, could put an end to the traditional U.S. hegemony in the Pacific.

 Moreover, the two military games made by the RAND Corporation, about a year ago, concerning a clash in the South Pacific between U.S. and Chinese-Russian forces, demonstrated that the United States would soon be defeated.

Hence, as usual, for the United States once again it is primarily a matter of “protecting the People, the Homeland, the American way of life”. There is great fear for Chinese “propaganda” in the United States, as if it could not be opposed at all. A sweeping analysis was made for Chinese students, the largest foreign community in the United States, and a regulation called Foreign Investment Risk Review Modernization Act was enacted. In January 2020 the United States and China signed also the “Phase One” of a major trade agreement that, according to the United States, is expected to change Chinese business practices significantly. In fact, the agreement provides that the CPC cannot force or orient foreign companies to transfer their technology to keep on producing or selling in China. It also strengthens the rules on the protection of intellectual data in China and finally opens up Chinese markets to U.S. agricultural products, on which it has much relied for its foreign policy.

 On the military level, the U.S. Administration (and it would be anyway the same if there were another President) wants a new relationship with “similar” and “friendly” countries so as to counter the Chinese military build-up and develop the Indo-Pacific Strategy Report. In other words, obviously the U.S. block of every “One China Policy”, but hence implicit support to internal factionalism, in Hong Kong and Taiwan, as well as proposing a stop to the Chinese expansion between Xinjiang and Pakistan’s maritime network.

Furthermore, as to the ideological struggle, support for Religious Freedom, the usual fight for “human rights”, the U.S. protections for “minorities’ liberties”. That is all. But we do not think it will be enough.

 Certainly, Chinese infrastructural investment is currently designed to competing with the United States and better controlling civil society.

 The 55-kilometre bridge going from Hong Kong to Macao, with two artificial islands that allow the road to sink 7 kilometres into a very long underwater tunnel is an eminently political and strategic project.

 Obviously, it is in fact a matter of building a Unified Commercial Zone, like the one in New York or Tokyo.

 But it is also a matter of creating a strategic control zone to currently protect those coasts, which are currently more economically important than China. However, it is precisely in this area that as much as 4% of the regional and national GDP is dedicated to the construction of quantum computer networks and encryption. The classic civil-military dual objective.

 Currently China is already a leading country in quantum communications between Space and Earth. It has already built a Quantum Computing Laboratory in Hefei, Anhui Province, with 10 billion U.S. dollars, while the China-U.S. Economic and Security Commission has established that, as early as 2000, China had bridged the technological gap with the United States with regard to quantum computing.

Is it true? We do not know for sure, but this is certainly where the real economic and intelligence war between China and the United States is developing.

As Krugman maintained in an old article for Foreign Affairs, nations are not corporationsand they do not compete one another as companies always do. Nations, however, certainly compete for market outlets, for financial resources, for technologies and for cultural or influence operations.

 There is nothing else. Nevertheless, we must never forget that the major countries’ strategic “policy line”, to which Italy adapts in a sheep like way, envisages variables – also for the small and medium countries – which are not at all negligible.

Also at military level, China’s operations in Ladakh and Tibet are an example of the interest – dating back to Mao Zedong’s times – in using Tibet as “the palm of the Chinese hand” to expand China’s influence throughout South Asia, which is a primary strategic axis.

 It is a matter of encircling India and later stable geo-economic blocs are built, just against India, with the Chinese expansion in Myanmar, Sri Lanka and Pakistan.

 There must always be a spatial logic – we would classically define as geopolitics – which follows the definition of a country’s primary interest. When it knows how to evaluate it,however, which certainly does not happen currently in Italy.

In any case Tibet would have been India’s first natural defence line, if China had not already taken itas early as 1950.

Hence Tibet, with its strategic “five fingers”, i.e. Ladakh, Sikkim, Nepal, Bhutan and Arunachal Pradesh, will be China’s checkpoint from the South, and we do not believe it will be easily opened by India’s collaboration with other countries, such as the United States.

Without Tibet available, economic, military and intelligence operations against the Belt&Road Initiative will be largely blocked.

Furthermore, President Xi Jinping – who knows the Party and State apparatus very well – has recently launched a campaign of “Security Apparatus Clean-up”. Since November 2012, President Xi Jinping has also marginalised the old leader of the Chinese security apparatus, Zhou Yongkang, directly acquiring an assignment from Politburo and not from Politburo Standing Committee.

Nowadays, China’s security apparatus budget is officially estimated at 183,272 million yuan, equivalent to 26.6 billion U.S. dollars.

While Zhou Yongkang, a man of Hua Guofeng and later of Deng Xiaoping, was arrested in 2012, Hu Jintao himself sent as many as 3,000 Intelligence Service executives to re-education camps.

 3,000 executives in a total of 1.97 million officials and operatives.

Nevertheless, this year the turning point has been the establishment of the Safe China Construction Coordinating Small Group, now led by Guo Shengkun.

Later Lin Rui came. President Xi Jinping still trusts him and, however, he is a computer engineer.

Nevertheless, the “clean-up of the security apparatus”in Xi Jinping’s hands will most likely be completed next year.

 A new “Yan’an Rectification Movement”, like the one that Mao Zedong promoted.

Rectification campaigns, collection of Xi Jinping’s sayings to “set the policy line”, with the collection of the “four consciences” (ideology, the whole country, principles and policies) and the four trusts (Socialism with Chinese characteristics; trust in a system that proposes the nature of Chinese Socialism; trust in its own culture and values).

Hence this will be the intellectual and operative scenario with which Xi Jinping will fight against the United States. A fight which will not be easy, but not even with a predictable result.

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Here is How China Responds to US in Indo-Pacific

Jannus TH. Siahaan

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on

Trump administration recognizes the Chinese style of war with the term of  “Unrestricted Warfare,” unlimited war on all fronts, not merely a matter of arms war. Therefore, Trump continues to try to bulldoze China from various sides, the economy, corporation, media, education, the military, etc. How China sees war is not a new things. James Burnham in his book “The War  We Are In“, half a century ago, has very clearly been explained. I argue, in addition to continuing to enjoy the “Thucydides trap” theory, the way how China has been looking at war is also crucial in determining the Chinese style of facing America in the South China Sea. China clearly hopes to play with a long-term strategy, given its very long leadership period. Unlike the American President, who will always be threatened by his position once every four years.

So China most likely will not fight America openly in the South China Sea, but continue to increase its power. While on the other hand, China begin to undermine America’s strategic partners one by one. Such as, South Korea, Japan, India and Australia. That’s why, China certainly needs North Korea to disrupt. Why? Based on the American “island line” strategy, South Korea is the center of the first “island line”. There are approximately 28,000 more American troops in South Korea. Moreover, North Korea’s nuclear warhead can reach Japan, even reaching the center of America’s second “island line” on Guam. Providing dangerous threats in America’s first and second “island line” circles will make Taiwan easier to seize and then disrupting the coordination lines of American power in South China Sea with its closest partners

While in the East, China continues to press and is ready to have a military dispute with India on the Line of Actual Control. Without much public attention, China has surrounded India for the past several years. China already has military bases in Djibouti and possibly in Gwadar Pakistan, both thanks to the cooperation of the Road and Belt Initiative, where Djibouti was finally unable to pay debts, then its port was diverted to China and made a military base. The same thing happened with Gwadar. And most likely, China will be very able to convince Russia not to get involved by offering economic benefits from the war between India and Russia, because both countries –China and India — are consumers of Russian weapons.

On the other hand, China will continue to wreak revenge on trade war with America to Australia, to the maximum extent that losses can be received by the land of Kangoroos. Especially after the involvement of the Australian Frigate in the American international navigation convoy on South China Sea and after Australia reacted on China about covering up Covid 19. China is Australia’s biggest trading partner. China seems to be quite sure, with the application of high tariffs for many Australia’s export commodities will weaken the country’s economic capabilities. And all the shock therapy will give a bad signal to the countries around the South China Sea.

The same way will be played with Canada that has imprisond Meng Wanzhou, CFO Hua Wei, at the request of American extradition law. And don’t forget, slowly but surely, the Belt and Road Initiative has also divided Europe, Africa, and slowly in the Middle East. Now, when it comes to Chinese matters, the European Union does not all agree that China is a threat (just competitor even after Covid 19 and Hong Kong Case), since the fast train line and any infrastructure projects have split the blue continent.

Then at the American domestic level itself, China will probably continue to intervene and infiltrate elections, ride various issues that have the potential to weaken Trump’s position. Although China said, it is very happy if Trump was re-elected because Trump has the potential to damage the American alliance with many countries. But, it’s pretty sure to translate that China really  want Joe Biden to win. It’s easier for China if democrats are enthroned.

Is America likely to lose? I still believe, the Chinese war is not for today. Today, militarily and economically, America still has the upper hand. However, Xi is a marathon runner, Xi may be the president for life. But the signals of the threat of Unrestricted War are already visible. Today, on the other hand, geostrategically America has long made an alliance to surround China. In South China Sea, America still has Taiwan, Vietnam, the Philippines, Malaysia, Singapore (maybe Indonesia) even though South Korea and Japan are intimidated  by North Korea. Also in economic side, for example, though China stay growing 6 percent stably and America is only 1-2 percent stably, China still needs decades to catch up to America’s GDP per capita.

Therefore, China will play long and pay in instalments one by one the target. China will probably not focus on South China Sea with hard power, but on Taiwan first, after Hong Kong was successfully acquired without war, by continuing to spread threats in the South China Sea to divide American concentration. After Tse Ing Wen came to the power, peace unification with China had failed. The offer of “one country two systems” was rejected by Tse Ing Wen and the people of Taiwan. As a result, China will boast more power around Taiwan, while preoccupying South Korea and Japan with North Korea’s actions, and still looks aggressive at South China Sea.

This is one form of “Omni-dimensional war” of China, as Burnham wrote. But China will really need a lot of energies and patience to play long, more over after pandemic which has been throwing them to the corner of international order. Meanwhile, in short, US will be more aggressive in South China Sea to get more attention from Trump’s domestic supporter till the next election day. So, the more successful Trump in making Americans angry (hate) at China is one of the keys to Trump getting a majority of votes in the elections later. I’m pretty sure, Trump will continue to play this Chinese card in the next few months ahead, until the election comes. And the medium term result is that South China Sea will just be provocative theater for both.

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