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China’s new strategic positioning

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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.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

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East Asia

The Xinjiang-Uyghur issue

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In late March the United States, Canada, the UK and the EU took a concerted action to announce sanctions over human rights violations against the Uyghurs and other ethnic minorities in Xinjiang-Uyghur by the Chinese government.

This is the first time since the Tiananmen Square incident in 1989 that the EU and the UK have imposed sanctions on China over human rights issues.

Furthermore, Australia and New Zealand also issued statements expressing support for joint U.S. and EU sanctions against China. U.S. Secretary of State Tony Blinken stated: “The joint transatlantic operation sends a strong signal to those who violate or trample on international human rights”.

This joint operation is clearly part of a concerted U.S. effort to work with its Western allies against China through diplomatic actions.

After gruelling wars in Korea and Vietnam and later in the Balkans, Afghanistan, Iraq, Libya and Syria,we wonder:

1) why do we want to open another front to export democracy with bombs?

2) Why has the Xinjiang-Uyghur issue become a deadly matter that brings the United States and its allies together to impose sanctions on China, while ignoring the barbaric behaviours codified by the backward-looking, but allied Gulf monarchies?

3) Why is the Xinjiang-Uyghur issue attracting increasing attention from the international community?

4) Why does the United States use the Xinjiang-Uyghur human rights issues to shape a diplomatic action with Western allies against China and forget about the black people being murdered on the streets at home?

Let us try to better understand the situation.

The strategic importance of Xinjiang-Uyhgur for China is similar to Tibet’s (Xizang). The Xinjiang-Uyghur Autonomous Region is the largest provincial unit in China. It covers one-sixth of China’s territory and borders on Mongolia, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Pakistan and India. It can be used as a base by China to influence its neighbours. However, Xinjiang-Uygur can be used as a bridgehead by external powers to threaten China’s territorial integrity.

Like Tibet (Xizang), Xinjiang-Uyghur also has immense economic value in terms of oil and gas resources, and it can also be used as a channel to import energy from Kazakhstan. It is also a site for Chinese nuclear weapons and missile tests.

This area has traditionally been under the influence of various forces that have been claiming these territories. For thousands of years, the deserts and mountains of Xinjiang-Uygur were crossed by merchants. Peoples and armies passed through it continuously, sometimes forming alliances with the Middle Empire, sometimes to free themselves from the Emperor’s influence, only to fall into worse hands.

The Chinese who started to travel there before the 19th century met Persians and Muslims, most of whom were Turkish-speaking. It is not for nothing that the other name of the territory is East Turkestan.

The region was not fully incorporated into the Chinese administrative system until 1884, when it was divided into province and called Xinjiang, meaning “new frontier”. China’s control, however, was fragile and, when China’s presence was still at a minimum in 1944, the local population announced the establishment of a short-lived republic called East Turkestan, backed by the Soviet Union led by Stalin, who – like the United States today – wanted it to fall within his sphere of influence.

However, as Stalin was a great statesman and not just a parvenu, with the birth of the People’s Republic of China, the Georgian leader agreed that the territory be reintegrated into the Middle Empire as the Xinjiang-Uyghur Autonomous Region.

With a view to strengthening administrative and political control in the autonomous region, the People’s Republic of China used the same methods in other surrounding areas: immigration development, trade, cultural assimilation, administrative integration and international isolation.

As early as the mid-18th century, the Qing government had created a national industry near the capital Ürümqi. In the 19th century, Chinese merchants arrived in large numbers. After 1949, the People’s Republic of China placed the autonomous region under a national plan designed to orient and direct local trade towards China’s internal economy, banning border trade and people movements that were widespread in the past between borders that at the time were undefined and misgoverned.

In 1954 China established the Xinjiang-Uyghur Semi-Military Production and Construction Corps to transfer demobilised officers and soldiers, as well as other Chinese immigrants, to industries, mines and enterprises. During the Cultural Revolution in the 1960s, thousands of middle school graduates were delegated to perform tasks in Xinjiang-Uyghur from various cities in China, especially Shanghai, and most of them lived in farms. I remember the great enthusiasm of some major European parties at this news: the same parties that, having changed their names, are today shedding “the bitter tears of Petra von Kant” along with Biden.

In the 2010 census – according to official statistics – out of 21,815,815 inhabitants, 45.4% were Uyghurs and 40.48% Chinese, although the real number could be even higher. The many officially recognised ethnic minorities included Kazakhs and Muslims of Chinese ethnicity.

In the decades prior to 1980, Xinjiang-Uygur developed slowly because of its bordering on the then hostile post-1960 Soviet Union, and because of its rugged and considerable distance from other parts of China. However, when Deng Xiaoping implemented reforms in the 1980s, China’s development policy created demand for Xinjiang-Uyghur’s coal, oil and gas resources, thus making the local area one of China’s largest producers of fossil fuels.

In the 1990s, China began building oil pipelines to transport oil from the far West to the mainland market. In 2001, China announced a “Western development” policy to fully exploit Xinjiang-Uyghur’s resources. The central government invested billions of dollars to build infrastructure and create political incentives to attract national and foreign companies.

This has meant that the country has increased its per capita GDP, as well as raised the education level. China has also modernised its society and this has made it unpopular with those fundamentalist Muslims who, boiling with terrorist rage, are now calling for help from those who initially funded ISIS to bring the secular Syrian government down, under the slogan “the enemy of my enemy is my friend”.

For most of the Maoist era, the Uyghurs, as well as the less numerous Kazakhs, Kyrgyz and other ethnic minorities, were forced to give up Islam, learn Chinese and relinquish their traditional customs and habits. All this much to the delight of the then epicurean and atheist West, which has always despised faith: a further element of contrast that later materialized on the part of fundamentalists.

As in Tibet (Xizang), the most traditionalist Uyghurs believe that their land has been invaded by Chinese immigrants and their lives are overwhelmed by a “Western” style imposed authoritatively from outside: a pretext that President Erdoğan has been the first to exploit, not failing to include it in his Panturanist conception.

In fact, after the implosion of the Soviet Union in 1991, the Turkic and immigrant Uyghur communities in the three new neighbouring States of Central Asia, namely Kazakhstan, Kyrgyzstan and Uzbekistan, experienced a cultural and religious revival, thus creating a new sense of hope and power among the Uyghurs in Xinjiang-Uyghur.

From the 1980s to 2001, demonstrations, riots, occasional murders and terrorist attacks occurred with increasing frequency. The Chinese government claims that the criminals’ goal is 1) to separate Xinjiang-Uyghur from China, and 2) that the Uyghur separatists are terrorists connected to al-Qaeda.

All these accusations are controversial, because most Uyghurs – either secular or moderate Sunni Muslims – have not created a resistance movement at all, as the Uyghur society is not integrated around specific Islamist parameters.

Many incidents seem to have various and sometimes personal causes, and often result in casualties. But, in any case, the authorities have launched a series of strict public order campaigns, fearing that even the slightest sign of dissent, such as a demonstration, a parade, a march, a gunfight with the police, will be amplified by the usual media to pave the way for a bloody local civil conflict, which – unlike the Syrian one – could turn into the Third and Last World War.

All this would certainly not be triggered to protect some fundamentalist Muslims in defence of human rights. The causes are always the same.

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Chinese Foreign Policy in a Global Perspective

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Foreign policy plays a fundamental role in state security and government’s decision-making. It is the pivotal factor for political stability of a nation, its economic affairs as well as the relations with other states. It is necessary for the development of a nation or a region to resolve the disputes with their neighbors. International disputes have frequently been given a fair chance with dialogue between the warring parties. Different states can coexist with friendly neighbor resulting in greater benefit for the people of the country. It brings peace and stability in the region as a byproduct. For the progress of humanity, peace is an essential element. To avoid war and hostility, an element of understanding and mutual survival should be established among the states. Hence, the concerned states will learn to co-exist peacefully.

Since its independence, China has pursued a focused approach towards attaining financial progress. Diplomatic policy of China has been directed towards its economic prosperity and political independence of the Chinese nation. Initially it was an isolated nation with introspective policies. Its national policy characteristics included peaceful co-existence between nations, mutual interdependence, regional supremacy, autonomy, national safety and avoidance of conflicts with other states and nations. Hence China developed regional influence and stability and developed good relations internationally and globally. China wanted to protect its territorial autonomy and sovereignty of other regional nations as well. Hence it soon emerged as a powerful nation both militarily and economically.

China continued working on a deliberate path of stable and good relations with other countries globally. The role of leaders and government in the foreign affairs under Xi-Jinping’s leadership catapulted the Chinese national and foreign policy to new heights. This charismatic leadership brought constructive changes in the internal governance and matters of foreign involvement with other nations. He emphasized the importance of military and during his governance astounding improvement in foreign and regional stability was observed.  The internal stability of Chinese national policy was soon reflected on the international podium. Its economic prosperity increased astronomically under the vigilant governance of the leader of China’s political party. China rose peacefully and gained regional, economic, and political stability. China is today considered as a world-wide power because of its stable national policy. It has observed a radical development in geo-politics. Why has the significance of Chinese nation increased in the international community?

China and Pakistan have enjoyed friendly relations with each other for decades. Gwadar port will become a doorway for business, commerce, collaboration, coordination and development between these two neighbours. It does not only affect China and Pakistan’s economic prosperity but the prosperity of South Asia and beyond. China has achieved worldwide recognition as an economic might with powerful impact on economy, geography and strategy of the region. The port has worldwide implications, whether related to economy, trade or commercial activities.

The dimension of foreign policy has evolved with the pace of time. The relations between China and United States of America are complicated. Both nations have difference of opinion regarding vital concerns of the state, political practices, administration, diplomatic policies and commercial productivity. Both nations consider different notions regarding the concept of civil rights. President Donald Trump has recognized China as an adversary for the United States of America. According to his beliefs, China abhors the ethics and principles of America causing a destabilizing effect in South-China Sea region.

China has undertaken military action in the South China Sea and has carried naval exercises in the area. However, United States the opponent of China says that economic prosperity could be affected because of the Chinese presence in the region. Under international regulations, overseas armed forces are not able to control surveillance activities including inspection and scrutiny of the vessels, in its industrial zone. However, China remains unsuccessful to resolve this clash by diplomatic ways. This would result in de-stabilizing the South-China Sea region. Conflict between Philippines and China may rise as a consequence of American backing. To further its economical and safety concerns, United States has laid down bold claims regarding China’s occupation of  territory and land in the South China Sea. On the other hand, Japan has sold naval ships to Philippines and Vietnam to enhance their naval protection and discourage Chinese hostility.The relationship between India and China is of worldwide significance. India is a prospering nation in the South Asian region. India perceives China as a militant anathema. China can hamper India’s progress in economical prosperity and can shackle India’s image internationally. Another challenge for India is the Pakistan-China relations. China’s influence can be spread globally which could be inimical to India’s scrutiny. China’s dominance, geographical vicinity and strategies depict an image of instability to India’s national  and international interests. India cannot protect its interests and has to make crucial strategic decisions. However if India makes United States it will be able to protect its national interests. India has to overcome many challenges and hurdles as China has dominant influence over the South-Asian region and beyond. Asia’s old opponents China and India are now engaging in a race to initiate maritime assets and to gain influence over each other. India’s wants China to behave according to international regulations. To respect territorial righteousness, and thoughtfulness for all nations irrespective of their magnitude. Both China and India will continue to hustle over the South Asian region, its territory and resources.

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Exploring China’s National Salvation in the 1911 Revolution

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The 1911 Revolution, also known as the Chinese Revolution or the Xinhai Revolution, brought an end to China's last imperial dynasty, the Manchu-led Qing dynasty, and resulted in the creation of the Republic of China on January 1, 1912. (photo from baidu)

When the First Opium War broke out in 1840, China became a semi-colonial and semi-feudal nation ruled by foreign powers. The final years of the Qing Dynasty (1644-1911), which saw the demise of the imperial regime, were marked by degradation and incompetence; the people were thrown into disorder, and the Chinese nation was plunged into a pit of misery.

During those dark ages, it became clear that the Chinese people would have to overturn feudal autocratic rule and undergo profound social reform in order to gain national freedom. More than a century ago, Revolutionary Party members led by Sun Yat-sen launched the 1911 Revolution, shocking the world and causing unprecedented social change in China.

While living in exile in Honolulu in November 1894, Sun Yat-sen, the father of the Modern China, founded the Xingzhonghui (Society for China’s Regeneration), clearly proposing the first program for a Chinese democratic revolution. Between 1895 and 1911, the Xingzhonghui and Tongmenghui (Chinese Revolutionary League) launched ten uprisings. The Restoration Society also instigated several uprisings across China, sowing the seeds of revolution.

Sun Yat-sen proposed a political program based on the Three People’s Principles: nationalism, democracy, and people’s livehood. A large number of revolutionaries and patriots gathered under his leadership to revitalize China and spread revolutionary ideas. This active progressive wave provided a significant impetus to the formation trends.

On October 10, 1911, gunfire signaled the start of the Revolution of 1911 in Wuchang, Central China, which became known as the “Wuchang Uprising”; other provinces responded, and within a month, 15 had declared their independence. The Republic of China was formally established on January 1, 1912, ending a monarchy that had existed in China for over 2,000 years.

The 1911 Revolution, which overthrew the Qing Dynasty, lasted more than 260 years. It was also a democratic revolution that occurred against the backdrop of an increasingly decaying Qing Dynasty, deepening imperialist aggression, and the early rise of Chinese nationalism. Its goal was to overthrow the Qing Dynasty’s despotic rule, save the nation from danger, and strive for national independence, democracy, and prosperity.

With its new politics and ideology, the 1911 Revolution provided a liberation mechanism for the Chinese people that should not be underestimated. It instilled in people a strong sense of democracy and republicanism. Anti-imperialist and anti-feudal struggles intensified, with the 1911 Revolution serving as a new starting point. By overthrowing the Qing Dynasty, it spread the concept of democracy and promoted social changes in modern China by leveraging its massive shock power and profound influence.

However, due to the constraints imposed by historical processes and social conditions, it was unable to change the social nature of semi-colonialism and people’s miserable situation, nor achieve national independence and people’s liberation. It did, however, pioneer a full-fledged national democratic revolution, vigorously promoted the ideological emancipation of the Chinese nation, laid the groundwork for China’s progress, and explored the path for its future development.

Sun Yat-sen had a charismatic personality, a singular commitment to power, and a knowledge of the West unparalleled by any of his political rivals, which distinguished him and made him an icon of Chinese modernization. He was appropriately dubbed a “revolutionary pioneer” by the Chinese Communists.

This is a great historical process of exploring and realizing national independence, as well as the great rejuvenation of the Chinese nation, which has emerged after many ups and downs and various vicissitudes.

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