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China-Brazil relations, the win-win strategy, and third-parties’ bad faith

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In a previous article we focused on Argentina, but it is worth continuing to analyse the situation in Latin America.

Another case is Brazil, a key country in the BRICS cooperation mechanism. It has been China’s main trading partner in Latin America since 2009. After the son of Brazilian President Bolsonaro, Eduardo Nantes Bolsonaro (whom his father pathetically appointed Ambassador to the United States in July 2019, despite not having any specific qualifications: he resigned without even taking office after being offered the leadership of the Partido Social Liberal instead) visited the United States in March 2020, and tweeted condemning China for hiding the new coronavirus epidemic, by saying that China had a “dictatorial government”, etc., a diplomatic crisis was triggered.

At the same time, Brazil asked China for assistance, hoping it would provide five million Covid-19 test kits, and a total of 14,000 air conditioning and ventilation systems. Later, thanks to the efforts of Brazil’s then Minister of Health, Nelson Lutz Sperle Teich (April 17 -May 15, 2020), China eventually gave Brazil 228 million dollars in medical supplies, which helped the country alleviate the extreme shortage of hospital equipment, as well as treatment and prevention supplies. Additional two tons of hospital supplies arrived in Brazil.

There were some minor twists and turns. Although the relations between China and Brazil were not affected by the personal views of President Bolsonaro’s son, it can be seen that the development of Sino-Brazilian relations was not so smooth under the influence of the epidemic.

The newspaper Folha de S. Paitio claimed that the Brazilian government deliberately minimised the impact of Chinese diplomacy by hiding it and maximising U.S. aid to ‘avoid becoming a victim of Chinese foreign propaganda’.

The aid received from China is substantial, while the aid received from the United States (the country with the highest Covid-19 death toll) is far less. Nevertheless, the U.S. aid is vigorously publicized by the White House, which avoids mentioning aid from China. This reflects the tendency of changing sides.

This is the aspect on which we have been dwelling for some time: the United States is more important in the positioning of Latin America’s foreign relations. The development of China-Latin America relations is largely limited and constrained by the development of relations between the United States and its ‘own’ South.

Secondly, China needs to attach importance to third-party forces to develop relations with that region. Within the rise of trade protectionism and anti-globalisation, the proactive use of third parties to promote the development of relations, as well as the creation of new cooperation models, will contribute to reduce China’s risks and create a win-win situation from a multilateral perspective.

China has always proposed win-win cooperation in its foreign policy and has different interpretations from the U.S.win-win cooperation. First and foremost, the United States distorts the meaning of the expression. Attorney General William Barr said that win-win meant that China won twice. There are also those who believe that win-win means that China wins first, and in their opinion China always puts its interests first.

In the context of the demonisation strategy by Latin American media, there are obviously those having negative opinions. For example, during the election campaign, Brazilian President Bolsonaro pointed out that China was buying Brazil. His remarks raised concerns in all walks of society.

Due to the investment of Chinese companies in Brazil in 2016, 2017 and 2018, they have shown a trend of fast development, particularly through mergers and acquisitions. Latin American countries have more mineral resources and China has more energy and infrastructure projects. Therefore, the bulk of Chinese investment in Latin America is made by mining energy companies, which is an important sector of Chinese investment.

Indeed, the Chinese companies’ merger and acquisition targets are mostly assets driven by European and U.S. companies. Just consider, for example, the State Grid Corporation of China (SGCC) (the largest utility company in the world, established in 2002), which acquired a number of electricity companies in Brazil, many of which were Portuguese, Spanish and U.S. companies or subsidiaries of these countries or major shareholders, and were merged by SGCC.

Strictly speaking, China did not buy those assets from Brazil, but from Europe and the United States. However, when European and American countries controlled those assets with purely colonialist attitudes, Brazil had not such strong public concerns. Instead, when the Chinese purchase took place, public concern was stirred up by the paid media.

For example, in Brazil, the Chinese companies Longping Hi-Tech Park (established in 1997) and CITIC Group Agriculture Fund (established in 1979) have acquired the trade in certain products of the U.S. company Dow Chemical (one of the world’s most important chemical companies), and the Chinese company Wanhua Chemical will take over from Dow Chemical. The acquired companies are actually U.S. companies and such large-scale operations have raised fears among the local public.

Many Latin American countries are now facing economic and even debt crises triggered by the public health crisis. Therefore, they may not be able to keep on operating some assets and will return them at a relatively low price.

The U.S. and European companies have been hardest hit by the pandemic, but they are recovering. When Chinese companies acquire shareholdings in these energy or resource companies, they can cooperate with companies in Europe, the United States, Japan, South Korea and other Asian countries, so as to raise less concern among the public in Brazil, Chile and Peru.

China’s actions record shared interests and provide an image of inclusive and open cooperation. The State Grid Corporation of China says it is keen to work with European and U.S. companies to acquire some assets in Latin America

In terms of financing methods, Chinese companies should also strengthen cooperation with the World Bank (established in 1945), the Inter-American Development Bank (Banco Interamericano de Desarrollo, established in 1959), the Asian Infrastructure Investment Bank and the New BRICS Development Bank.

They are multilateral financial institutions with a very broad investment experience. For example, the Inter-American Development Bank has been operating for over sixty years and it is the world’s leading regional lender, which has funded over 20,000 infrastructure projects in Latin America. Its experience and expertise are therefore unrivalled.

Obviously China also established multilateral investment bodies such as the aforementioned Asian Infrastructure Investment Bank (established in 2014) and the New BRICS Development Bank (established in 2014). Nevertheless, compared to the Inter-American Development Bank and the World Bank, the experience of Chinese financial institutions in transnational investment and financing is relatively less. Many infrastructure projects have a very long construction period and require a relatively large scale of investment. They entail high risks, which can be reduced through cooperation with these multilateral institutions.

In short, all this is necessary to strengthen cooperation with third parties without spreading fears and terror artfully created by malicious disinformation.

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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Transition 2021: How Biden is likely to approach the Middle East

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In terms of foreign policy, the new President of the United States, Joe Biden,is likely to face numerous challenges, especially when it comes to the Middle East because of the disastrous policies of the former President, Donald Trump, in the region. Even in his inauguration speech, Biden made it clear that it was going to be testing time. Some of the challenges that the new administration would be facing includethe nuclear deal with Iran, the ongoing war in Yemen, issues of human rights issues and the current deadlock between Israel and Palestine. There is some possibility that Biden’s foreign policy towards the Middle East would either be a revival of Barack Obama’s former policies or new strategies would be formulated based on the nature of the challenges faced. However, it is certain that Biden will address or undo Trump’s terrible policies in the region. 

The Biden administration’s top foreign policy agenda is the policy towards Iran. The Iran nuclear deal (2015) or JCOPA was considered to be a milestone in multilateral diplomacy that was irresponsibly abandoned by Trump in 2018. Trump’s “maximum pressure campaign” of sanctions against Iran aimed to please the traditional allies as they faced a common enemy in Iran. Biden has promised to return to the 2015 JCPOA agreement, and he would also discuss Iran’s nuclear program and exchange for sanctions relief. In this process, it is expected that Washington might pressure Iran to withdraw its support for regional proxies in Iraq, Syria, Yemen, Lebanon and the Palestinian territories. Moreover, the US would also seek to curb Iran’s export of precision guided missiles to her regional allies. Iran though, has already made it clear that these issues would not be discussed in the event of a renegotiated JCPOA. Furthermore, this plan may be complicated by the recent assassination of Iran’s top nuclear scientist, which was not condemned by the White House that Iran blames on Israel. Public outrage had not even subdued at the point due to the assassination of Qasim Sulemani. Currently, the architecture of the Middle Eastern region is even more complex and challenging than it was four years ago butthe fact is that Iran cannot afford military conflict at this point when its economy is already crippling amidst the COVID-19 pandemic along with the sanctions imposed by the US.

Trump administration’s “Israel-first” approach in the region brought severe criticism at the global level. The Abraham Accord, signed in September of last year,which normalized Israel’s relations with UAE & Bahrain, is widely seen as Donald Trump’s most significant foreign policy achievement. This Accord altered the decades long regional perception that Arab-Israel peace could not be achieved without first addressing the issue of statehood for Palestinians. Biden has said that he supports more countries recognizing Israel but at the same time Israel needs to work towards genuine solutions between the two states. Moreover, the new administration at the White House will not show the same tolerance for Israel’s settler expansionism as its predecessor. However, there are certain foreign policies by the Trump administration that the new US leadership does not want to renew. The normalization of Arab-Israel relations is something that enjoys bipartisan support. And also, the shift of the US embassy to Jerusalem seems unlikely to be undone.

The US policy inthe Middle East under the new leadership will be less ideological and would be more based on fundamental principles.  These principles will greatly focus on human rights as some analysts view human rights as the core foreign policy agenda of the Biden administration. Thus, it does not seem not to be good news for the traditional allies of the US including the Kingdom of Saudi Arabia and Israel. There are a variety of issues in addition to the human rights issues: the KSA intervention in Yemen, arms sales to Saudi Arabia, the lingering mistrust, the jailing of activists and Jamall Khashoggi’s murder case, which are creating uncertainties between the Washington and Riyadh. Hence, KSA is going to have a very difficult time with the Biden administration. Similarly, the new administration can also be expected to take a less tolerant view towards Moscow and Ankara because of the extraterritorial activities in the Middle Eastern region.

Certainly, returning to the Iran nuclear dealofficially, the Joint Comprehensive Plan of Action-will take a longer time to review because of the complexity of the issue and the domestic problems that the US is currently facing. There is also a possibility of a dangerous escalation without a nuclear deal due to Iran’s aims of buildingmilitary scenarios. Therefore, multilateral diplomacy is the best option for regional peace and security, which has been tried in the previous years.Even the JCPOA was a result of such diplomacy. The US ending its support to Saudi Arabia’s war in Yemen might turn away the traditional allies for some time but not permanently due to the common interests in the region. Biden is also likely to alter Trump’s decision to withdraw US forces from the region as it would decrease US influence in the region. The top priority of the US administration in the Middle East would be to try and manage Iran’s problems and to maintain reasonable relations with Israel. Traditional allies of the US in the Middle East were content and supportive of Trump’s policies in the region but they view Biden, not as a President, but Vice President of the Obama Administration. Trump’s bilateral relations were often based on personal ties with the foreign leaders while Biden is expected to adopt a more multilateral approach in engaging with the allies. Still, scholars believe that there would be no fundamental change in the US foreign policy towards the Middle East, especially when it comes to protecting its vested interests in the region.

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Rejoining the UNHRC will be the State Department’s first diplomatic mistake

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As over the last days US Vice President Harris swore in Linda Thomas-Greenfield as the new US Ambassador to the UN, US Secretary of State Blinken announced in parallel that the US is now seeking election to the UN Human Rights Council, in an attempt to rejoin the UN system. But that’s not the right first move back at the UN that the US should be making. And that’s not what the progressive left had in mind when the real left groups put in office the new Biden Administration.

My perspective comes from having worked in the UN human rights system and as a finalist for UN Special Rapporteur on freedom of speech last year – but also as a progressive left voice.

The days when UN engagement defined Democrats vis-a-vis Republicans are over.

Shunning the UN has always been a Republican hallmark but backing and pouring so much funding into an old style, corrupt bureaucracy that has little to do with “diplomacy” is not what the new, awaken progressive left wants either.

Several weeks ago, I made the estimate that the 10bln dollars which the US government pours into the black hole called the UN equals the Covid relief that 16mln struggling American people could be getting now. The Biden Administration’s State Department diplomats have to remember who put them in office.

Democrat centrist diplomats have more in common with the UN in terms of ways, goals, style and world view than they do with the progressive left. Backing the UN means backing the old, corrupt ways, which the real progressive left voted to break last year.

The decision to announce the US’s goal to rejoin the UN Human Rights Council comes in the same week when President Biden finally announced his real stance on the Black Lives Matter ‘defund the police’ goals. Biden, it turns out, unsurprisingly does not support that. That’s not what the progressive left signed up for, either.

The UN institutional funding inertia by the US government does not define the Democratic Party anymore. That’s not what the left voters want. 

The left’s reasons for not embracing the UN and the UN Human Rights Council have little to do with the usual Republican ‘go it alone’ at the international stage.

Yes to diplomacy and multilateralism. No to the corrupt, faceless UN. “International diplomacy” is no longer the same thing as the UN system.

The wave that rose across American political life last year, with so many young black activists and so many people voting for the first time, signaled a big resounding No to old ways and old institutions, which have little concern for the actual needs of the people.

The new US Ambassador to the UN, Thomas-Greenfield, will have the tough job of reforming the UN, and in my opinion, even defunding the UN.

The days when love for the UN defined Democrats are certainly over. It’s time for the Biden Administration to do what it was elected for, which is to not simply go back to the same old, same old corrupt, faceless bureaucratic institutions swimming in money. This is not what we want. The progressive left voted for change and now that also includes the UN.

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U.S. Climate Policy Could Break the Ice with Russia

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Photo: Fiona Paton/ flickr

“In the midst of every crisis, lies great opportunity” — Albert Einstein

Within the climate crisis lies strategic opportunity for the United States. Climate change offers the chance to earn back the good will of allies, to prepare American cities for an urgently needed increase in immigration, and to reinvent U.S.-led institutions that have gone stale. Perhaps most of all, foreign policymakers should remain cognizant of how climate action can help the U.S. navigate relations with the other great powers.

As a recent report from the Center for a New American Security details, synergy between China and Russia is more problematic for U.S. interests than the sum of the challenges that each nation poses individually. Similarly, a recent Atlantic Council publication observed that “allowing Russia to drift fully into China’s strategic embrace over the last decade will go down as the single greatest geostrategic error.” Chinese and Russian interests do currently align on defense, economics, and the degradation of the U.S.-designed world order, but the nature of their alignment does not constitute an alliance.

In characterizing the relationship, this distinction is paramount. For as long as China and Russia remain merely convenient partners, rather than ideologically kindred allies, it is possible to keep these neighbors at arm’s length. To this end, the U.S. must reorient its approach to Russia. It is the Russian perception that world politics are rigged to benefit the U.S. at Russia’s expense that has prompted its support for China.

Russia’s national interests are rooted in the desire for respect. With this in mind, Russia could pull back from synergy with China if a better opportunity to advance these interests presented itself. Ultimately, the ability of the U.S. to offer a mutually acceptable alternative will hinge on two related factors: the Arctic and NATO. Critically, the issue of climate change is central to both of these factors.

In the Arctic, rapid warming removes barriers to resource exploitation, shipping activity, and great power competition. This has drawn many non-Arctic states to the region. Yet, even with China inserting itself as a “Near-Arctic State,” Russia has expressed the need for a hierarchy of regional influence in which the interests of Arctic states are prioritized over non-Arctic states. On this, American and Russian interests align.

Russian distrust of the U.S. complicates matters, however. Arctic military assertiveness from Russia is evidence of its sensitivity to the NATO alliance. In response, U.S. military branches have been releasing strategies for Arctic-specific forward defense. Such militarism is not conducive to improving relations, securing sovereign influence, or addressing climate change. 

In order to limit undue Chinese influence in the region and stabilize its relations with Russia by securing a multilateral agreement that formalizes an Arctic hierarchy, the U.S. will need to alter its foreign policy so that Russia perceives it to be a viable partner. The alteration should be sufficient for reducing friction with Russia’s core interests, but not so extreme that liberal values or American security are put in jeopardy. Such transactional considerations should include fashioning a new climate-positive role for the U.S. in NATO. After all, the permanent physical presence of roughly 76,000 U.S. troops on the European continent not only irks Russia, but this posture is also expensive, carbon-intensive, and perhaps not even the most effective approach to conflict deterrence. 

Indeed, research has shown that rapid deployment of new forces is significantly more likely to stymie aggression. This suggests that the U.S. should reduce its troop levels in Europe by at least 75 percent while bolstering rapid deployment readiness. This would allow the U.S. to simultaneously reduce its military’s fuel demand and greenhouse gas emissions, earn the good will necessary for stronger diplomacy with Russia, and still honor its security commitment to NATO in the event of a crisis. Moreover, the U.S. could then reinvest the potential savings into both Arctic sustainability and NATO’s capacity to manage climate insecurity.

Through the establishment of a bounded Arctic order and the greening of American leadership in NATO, the U.S. can dispel Sino-Russian synergy in the region and help maintain balance between the great powers. Specifically, these actions would both politically distance China from Russia and give the Kremlin substantial reason to begin feeling more optimistic about its relations with the West. To be sure, similar measures will be necessary in other regions to fully assure balance. However, the Arctic is a natural place for the U.S. to begin this endeavor. Usefully, the themes of climate mitigation and adaptation provide a blueprint for what countering Sino-Russian synergy elsewhere ought to generally entail.

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