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Hong Kong security law in action: What next?

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As expected, the Hong Kong security law, unanimously passed by the Chinese parliament and signed by President Xi Jinping, came into effect on June 30, just hours away from the 23rd anniversary of the city’s handover to China from British rule (and also on the anniversary of the founding of the Chinese Communist Party).

The new law’s key provisions are pretty tough, with crimes of secession, subversion, terrorism and collusion with foreign states or external forces aimed at undermining national security now punishable by a maximum sentence of life in prison. Moreover, the new law can be applied retroactively. The central government in Beijing has also established special state security headquarters in Hong Kong and has already appointed its chief.

A young man deliberately rammed his motorbike into a line of police officers at full speed during the July 1 protests in the city, thus becoming the first violator of the new law. Before the day was out, more than 300 people had been detained, though not because of the new law, but due to a violation of a ban on mass events held amid the coronavirus epidemic). 

In an official statement, Hong Kong police promised to “make every effort to implement the law clearly and professionally to safeguard national security and to make sure that Hong Kong’s interests are fully respected.”  This time round, the police acted more assuredly against the protesters, using the entire arsenal of special equipment available to them, including batons, water cannons and tear gas.

The local elite likewise embraced the new law. The Hong Kong parliament tried to enact a similar law (the “Rebellion Act”) as early as 2003, but, faced with massive protests, eventually backed off. Now, according to media reports, weary after months of protests, the Hong Kong politicians had asked for toughening the law themselves. According to Beijing’s Liaison Office in Hong Kong, which is an organ of the State Council of the People’s Republic of China in the Hong Kong Special Administrative Region, after a two-day consultative meeting with 120 representatives of the local establishment, the latter had “expressed unanimous support” for the law and its speedy implementation.

After July 1, outside pressure on China was expected to increase due to the introduction of the new security law. British Foreign Secretary Dominic Raab denounced the new law as a gross violation of the declaration on the transfer of Hong Kong to China, and said that Beijing was breaking its promises to the people of Hong Kong and backsliding on its commitments to the international community. The United States, for its part, imposed sanctions on Chinese officials and organizations involved in the passage and implementation of the new law. China responded by slapping visa restrictions on US officials who interfere with Hong Kong’s autonomy.

Russia’s Foreign Ministry spokeswoman Maria Zakharova reiterated Moscow’s principled position on the situation around Hong Kong.

“We respect the sovereignty and territorial integrity of the People’s Republic of China and consider all issues pertaining to Hong Kong an internal affair of China,” she stated.

What many observers are now particularly concerned about, however, is   the impact that the introduction of the new security law may have on the financial and economic status of Hong Kong. On the one hand, almost 60 percent of foreign direct investments in China and over 70 percent of attracted capital (hundreds of billions of dollars) go through Hong Kong. On the other hand, Hong Kong is gradually losing ground, and not necessarily due to the new security law. 

Just as China’s economy is growing, Hong Kong’s share in it is shrinking. By the time of the city’s handover to China in the late 1990s, it accounted for over a quarter of China’s GDP, while now the figure is down to a mere three percent. The Hong Kong Stock Exchange – one of the world’s five main burses – has gradually been falling behind Shanghai.

Besides, the announced sanctions and threats of new ones have not yet affected the status of Hong Kong as an international financial center. Before the National Security Act was passed, the Beijing-based newspaper People’s Daily reported, the United States had already rescinded Hong Kong’s special status. The move only led to the suspension of the export license and tightened control over the export of defense equipment to the region, however, without affecting the city’s independent tariff status.

“China has already prepared for the worst, and US threats are useless,” the newspaper wrote.

One thing is clear: the US threats and actions are still unable to cause any real economic and financial damage to Hong Kong. Moreover, the recent China-EU summit showed that critical as Brussels is of China’s new security law, European money will keep flowing into Hong Kong (which, for all its importance, is just an offshore-like “big office” providing financial services).

What is most important, however, is that the constant protests are undermining the Hong Kong economy and scaring off tourists and real estate buyers. To remain financially attractive, Hong Kong needs to retain its status of a safe haven. The new security law will by no means hinder this process. Moreover, it will actually move it forward. 

From our partner International Affairs

Ph.D. in Political Science, An active member of the Academy of Military Science, Chief Researcher, Institute of Far Eastern Studies of the Russian Academy of Sciences (IFES RAS)

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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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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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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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