Last week, Henry Kissinger again warned US-China tensions are a threat to the entire world and could lead to Armageddon-like clash between the world’s two military and technology giants. Surprisingly, some Chinese are interpreting it as a threat to intimidate China in order to “accept and obey” the US-led world hegemonic order.
In January 2015, the peace group CODEPINK dangled a pair of handcuffs in front of the then 91-year old former Secretary of State Henry Kissinger at a Senate hearing. Twelve months later, at the February Democratic Debate Bernie Sanders and Hilary Clinton were seen engaged in a heated duel attacking and defending the acclaimed diplomat respectively. The late writer Christopher Hitchens in his book The Trial of Henry Kissinger warned editors, TV news channel producers and presidential candidates to stop soliciting Kissinger’s “worthless and dangerous” opinions. The never ending outburst of enmity on the part of CODEPINK, Sanders and Hitchens was due to Kissinger’s role in the brutal killings of thousands of civilians, gang rape of hundreds of female detainees, and alleged slaughtering of over one million people in Vietnam, Cambodia and Laos among countless similar crimes against humanity since the early 1970s.
As documented in “Kissinger and Chile: The Declassified Record,” as some 5,000 people were being detained and tortured in Chile’s National Stadium, Kissinger told the ruthless Augusto Pinochet: “You did a great service to the West in overthrowing Allende.” But Sanders-Clinton “spirited exchange” five years ago, as mentioned above, was not confined in Sanders’ words to Kissinger being “one of the most destructive secretaries of state in the modern history” of the United States. Sanders’ rare outburst also included Clinton defending her foreign policy mentor – Kissinger – on China. “[Kissinger’s] opening up China and his ongoing relationship with the leaders of China is an incredibly useful relationship for the United States of America,” Hilary Clinton emphatically pointed out.
Sanders responded disdainfully and berated Clinton for admiring Kissinger. “Kissinger first scared Americans about communist China and then opened up trade so US corporations could dump American workers and hire exploited and repressed Chinese,” Sanders had retorted. On the contrary, no one in Beijing either knows or seems interested in the so-called negative traits attributed to the veteran diplomat who is generally known as the most “influential figure in the making of American foreign policy since the end of World War II.” As according to Peter Lee, editor of the online China Matters and a veteran Asia Times columnist, the CPC leadership value Kissinger as the “symbol, custodian and advocate” of a US-China relationship that is special.
Professor Aaron Friedberg, author of A Contest for Supremacy: China, America, and the Struggle for Mastery in Asia, described the re-opening of relations with China as Kissinger’s greatest achievement. In a review of Kissinger’s massive book On China, Friedberg wrote: “Kissinger’s six hundred pages on China are an attempt to apply the principles of foreign policy realism to the most pressing strategic challenge of our day.” (Emphasis given) However, the approach, taken alone, was far from adequate in anticipating the behavior of an increasingly powerful China on the one hand, and for prescribing an appropriate American strategy to deal with a rising China on the other, Friedberg went on to add.
Since Mao, all successive top Chinese leaders have met with Kissinger one-on-one in Beijing, some even more than once. China’s current President Xi Jinping is no exception. In fact, given the deep esteem with which reform era CPC leadership has been embracing Henry Kissinger, the general wisdom in Beijing is President Xi has horned his diplomatic skills by learning well his (Kissinger’s) oft-quoted aphorism “you don’t go into negotiations unless your chances of success are 85 percent.” Kissinger had first met with Xi in 2007, when Xi, as the party secretary in Shanghai, had received the most frequent foreign visitor to China on a visit to the city. When asked for his assessment of the party’s new general secretary within days of the 18th party congress in November 2012 by the Wall Street Journal, Kissinger had said “Xi Jinping is a strong leader capable of rising up to any challenge.”
In the past four decades of Kissinger-CPC bonhomie, the first decade thanks to Cold War passed off rather smoothly and uneventfully. The second decade ushered in with perhaps the first most serious test for both Kissinger as well as for the US-China relations since the unfreezing of the bilateral ties by Nixon-Kissinger pair in the early 1970s. In June 1989, the CPC rulers used brutal force to crush peaceful student demonstrators at the Tiananmen Square and launched nationwide crackdown on suspected dissidents. Though criticized by the US political elite for “Kowtowing to Beijing” for defending the CPC authorities by saying “a crackdown was inevitable,” Kissinger did influence the Bush administration in imposing comparatively mild sanctions while deflecting congressional pressure for tougher action.
In third and fourth decades respectively, unlike during the first two stages, ideology gradually regained initiative over geopolitics in influencing the bilateral relationship. There are mainly two factors for this. First, from 1979 to the end of the last century, China was relatively weaker than the United States both economically and in military technology. Following China’s rapid economic growth beginning late 1990s and at the turn of the twenty-first century, a section in the US political elite became apprehensive of China’s assertive and highly competitive stance. These concerns soon gave birth to the “China threat theory” which Beijing unsuccessfully tried to pass off as “China’s peaceful rise.”
The second factor has much to do with the world financial crisis in 2008 which resulted in the beginning of decline of the US economy on the one hand, and the unfolding of the seemingly evident intent of the CPC leadership to “eventually displace the US” and “re-establishing their own country as the pre-eminent power in East Asia.” In other words, with Cold War and the Soviet Union both long gone, and China perceived as threatening to soon replace America as the world’s number one economy, the communist rulers in Beijing were under no illusion that the ideologically hostile US was plotting “color revolution” to replace the CPC with democratically elected leaders in the People’s Republic.
The chilling of US-China bilateral relations during the first year of Obama presidency itself, with China replacing Japan to become the world’s second largest economy in 2010 and further hardening of the US stance towards China, and finally the US “pivot to Asia” strategy introduced by the Secretary of State Hilary Clinton – all these were perceived by Beijing as the US “creating political framework for a confrontation with China in order to maintain the global hegemony of American dominance.” Even Kissinger was very much aware of the changing stance in Beijing, as is reflected from what he wrote in On China: “China would try to push American power as far away from its borders as it could, circumscribe the scope of American naval power, and reduce America’s weight in international diplomacy.”
Interestingly, although the most frequent US visitor to China has continued to visit China ever more frequently during the past decade, given the changing nature of polity in both the US and in China – especially the increasing “rivalry” under the Trump administration, it is not incorrect to conclude the Kissinger magic has gradually faded away from the bilateral relationship. It is least surprising therefore last Friday, when the “old friend of China” warned both Beijing and Washington in a speech at McCain Institute’s Sedona Forum in France, that their escalating tensions were leading the world towards Armageddon-like clash, the opinionated, vocal Chinese social media reacted with caution. “Kissinger used the so-called end of the world argument to threaten and intimidate China in order to accept and obey the hegemonic order by the United States,” a blogger responded.
A commentary in Chinese last week pointed out, ever since Trump launched “all out political war” against China, Kissinger has been in subtle and cunning way warning China to “cooperate” with Washington. The signed article entitled “Kissinger Continues to Scare the Chinese People” stated: “For the past two years or more, Kissinger has been repeatedly saying China must continue to compromise and obey the US hegemony and US-led global order. Otherwise, China will face the danger of World War I-like situation.”
To sum up, while calling Kissinger’s veiled threat a bluff, a reader posted in the chat room of guancha.cn – one of China’s most widely read online Chinese language news platform: the old man is a veteran who, more than anyone in China, has interacted with most number of China’s founding leaders. It is therefore his responsibility to explain to the world why most American politicians have failed to co-evolve with China’s leaders, Chinese government and with Chinese people? Why has America relentlessly carried on slandering China? Why America has been consistently accusing, vilifying and provoking China? Mr. Kissinger, please answer. Thank you.”
Chinese Communist Party and the path of “high-quality development” at Guangdong Province
During the meeting of “Huang Kunming”, Secretary of Guangdong Provincial Party Committee mentioned that it is significant for Guangdong embark on a path of high-quality development fit for its own situation. According to my highly understand of China’s high-quality development and analysis to the nature of the Chinese society and the polices of the Communist Party of China regarding the development is meaning (all-round building a strong modern socialist country) and all-round rejuvenation of the Chinese nation still need to rely on development.
With the continuous development of the Chinese economy and the deepening of reforms, China put forward a new expression of “high-quality development” for the first time at the 19th National Congress of the Communist Party of China in 2017, which indicates that China’s economy has moved from a stage of rapid growth to a stage of high-quality development.
Changing China’s economic development strategy is an inevitable choice in line with the law of development and the demands of its development. Now, China is seeking to change its previous development pattern of relying on a large number of factors of production to focus more on quality and efficiency. It has begun to adhere to the implementation of the new development philosophy that emphasizes innovative, coordinated, green and open development for all, and to build a new development pattern that relies on domestic trade and promotes integration between domestic and foreign trade to enable the Chinese society to complete the building of a strong modern socialist country in an all-round way, Chinese side should stick to advancing high-quality development as the top priority, as President Comrade “Xi Jinping” stressed in the report.
High-quality development mainly depends on the economy’s vitality, innovation and competitiveness. In order to improve these capabilities, China is accelerating the implementation of the innovation-driven development strategy, intensifying its efforts to achieve a high level of self-reliance in scientific and technological research, mobilizing forces and focusing on solving intractable problems in original and pioneering science and technology research to achieve breakthroughs in some crucial and pivotal technologies, which are guided by these strategies, China has achieved good results in manned space industry, lunar and Mars sounding, deep-sea and land exploration, supercomputers, satellite navigation, quantum information, electro-nuclear technologies, large-scale passenger aircraft, medicine, biopharmaceuticals and other fields over the past years, and joined the ranks of innovative countries in the world.
Green development is an important symbol of the transition of China’s economy from the stage of rapid growth to the stage of high-quality development. In recent years, China has pushed the green transition to a development mode, implemented the comprehensive rationalization strategy, developed green and low-carbon industries, and advocated green consumption.
The bright future of China’s economy stems from more flexible and high-quality development. In 2021, China calmly responded to changes in the world as well as the COVID-19 epidemic, took new steps to build a new development pattern, achieve new results in high-quality development, and achieve a good start for the 14th Five-Year Plan. China has maintained a leading position in the world in economic development and in epidemic prevention and control, accelerated the growth of national strategic scientific and technological forces, improved the flexibility of the industrial chain, continued to deepen supply-side structural reforms, and made solid progress in the green transformation of the low-carbon economy and prosperity subscriber.
Here, with the strong leadership of the Communist Party of China, the significant advantages of the socialist system with Chinese characteristics, the technological foundation accumulated since reform and opening up, the extremely large market advantage and domestic demand potential, and with huge human capital and human resources, the Chinese economy will continue to grow steadily on the path of high-quality development, enabling China to contribute in achieving a steady and stable progress in the recovery of the global economy.
China’s Deflating Population: The Economic Marvel in Eclipse?
So China’s population shrank last year. I admit my first instinct was … well, isn’t this a good thing? I mean, during the entire 1960s and 1970s, global discourse misted around how the world population kept growing beyond the finite resources of this world. And how food scarcity and poverty would create a social depression. China, with a population of roughly 1.4 billion people, was specifically a focal point of population reduction strategies. After the widespread catastrophe of the Great Leap Forward, a debilitating social program orchestrated by Mao Zedong in the late 50s, China’s population was on the up and up in the following decade, to the point that the infamous ‘One-Child Policy’ was introduced in the late 70s to inhibit the burden of a growing population – and concomitant poverty. Since then, however, China has dynamically transformed into an economic powerhouse – a factory floor for global manufacturing. And here lies the answer to this population conundrum: Shrinking population in China is a problem now!
According to the data released by the Chinese government last week, China’s population contracted by circa 850,000 people in 2022; with 9.56 million births against 10.41 million deaths, it was the first time in more than half a century that deaths outnumbered births in China. The initial thought would be to blame it on the pandemic. But that would be a blinkered assumption without gauging the stunted birth rate. It was the sixth consecutive year that the number of births fell, down from 10.6 million in 2021, according to the National Bureau of Statistics. Many demographers and statisticians warned for years about a population decline on the cards, albeit much later in this decade. This presage was why the government reposed its one-child policy in 2016 and extended the limit to three children in 2021. Local governments offered tax rebates and outright cash handouts to couples having children. The source of anxiety was partly social and partly economic – or maybe socioeconomic is the correct juxtaposition.
China is a rising economic power, the world’s second-largest economy, and the strongest contender to dethrone American supremacy. But in listing all the superlatives, we sometimes forget that China is still a developing economy. Despite its phenomenal evolution from endemic poverty, its average population still earns less than the average earnings in advanced economies. And the shrinking population is a two-pronged issue that could constrict China, like other leading developing economies, into a middle-income trap.
Just by simple inference, we can judge that a declining population is also an aging population. Impressive modernity in China’s healthcare system has led to an increase in life expectancy. Meanwhile, a decades-long hiatus in birth-conducive policies and changed mores of young Chinese couples, often antipathetic to having children altogether, have led to a sharp decline in births. A combination of these factors has invited a conspicuous outcome: Shrinkage in China’s working-age population. In fact, China’s working-age population has been in decline since 2015; according to a government spokesman, it could fall to roughly 700 million (approximately 23%) by 2050. This factor would be particularly problematic for China, which has long been a competitive labor market for manufacturing heavyweights like Apple and Microsoft. But moreover, a bulging elderly population amidst falling tax receipts would pose a challenge to government finances, especially given the comparably underdeveloped social safety net programs in China. Therefore, either taxes ought to be raised sharply or state pensions to old-age dependents would hit the skids – a spartan policy dilemma either way.
We can draw apt comparisons from Japan – the world’s third largest economy – which has notoriously suffered from a lopsided aging population and accompanying anemic economic growth since the asset bubble burst of the 1990s. I mean, China’s real estate market does look like a financial crisis just waiting to happen. But post-boom Japan has tried virtually every bizarre economic strategy – from negative interest rates to yield curve control – yet has failed to spark demand-led inflation. Strangely, however, China has sustained its bustling economy on prohibitive rates of investment rather than consumer demand, which has remained relatively lukewarm due to policymakers’ reluctance to pass the complete scope of economic growth to households. Nonetheless, a contracting labor force would perhaps accelerate the exodus of manufacturing from China unless the government finds alternatives to sustain China’s unrivaled productivity levels.
We could blame China’s ‘zero Covid’ policy for strangling economic growth. It is no surprise that China’s economy grew by a modest 3% in 2022, its slowest rate in nearly four decades, barring 2020. Intermittent lockdowns and pedantic mass testing regimes cast a pall over economic activities. And higher interest rates imposed by the Federal Reserve and other central banks have dampened global demand and diluted appetite for Chinese imports. According to government officials, year-on-year Chinese exports fell by 9.9% in December. While an economic turnaround is widely expected later this year, a falling working-age population; a skyward old-age dependency ratio; and the ongoing trade tussle with the United States could cost China many more decades to supersede the American edge. However, China has been an iridescent success story, an economic miracle of sorts. And therefore, if the Chinese Communist Party (CCP) could somehow prioritize economy over national security; social reforms over governmental control; and collaboration over confrontation, I reckon China can again defy the odds and achieve its dream.
Nepal-China Relations and Belt and Road Initiative
China appears to be more “functional” in Nepal recently. A new administration led by leader Pushpa Kamal Dahal has acted on the same pitch initially also. The Rasuwagadhi border crossing, which had been blocked for three years, has been reopened for two-way trade, and the much-anticipated Gyorong-Kathmandu train project’s final survey has also begun as of January 1, 2023. The second phase of the 10-lane ring road project from Kalanki to Chabhil is anticipated to start soon as well. All these accumulatively demonstrate the current nature of friendship between them and the profound Belt and Road Initiative is the key rostrum for the current complexion of the relationship between them. Hence, the trends are indicating a greater form of cooperation even in the regional domain as well.
Meanwhile, China and Nepal have inked a six-point agreement to strengthen bilateral collaboration and exchanges on governance, legislation, and supervisory practices, in line with Beijing’s Belt and Road Initiative (BRI). On September 12, 2022, in Kathmandu’s federal parliament building, Agni Prasad Sapkota, Speaker of the Parliament, and Li Zhanshu, Chairman of the Standing Committee of the Chinese National People’s Congress, signed the agreement. According to the agreement, the nations would exchange information about each other’s legislative, oversight, and governance activities. Five years after BRI’s founding, on May 12, 2017, Nepal formally joined the process. Nine projects – the upgrading of the Rasuwagadhi-Kathmandu road, the construction of the Kimathanka-Hile road, the construction of the road from Dipayal to the Chinese border, the Tokha-Bidur Road, the Galchhi-Rasuwagadhi-Kerung400kv transmission line, the Kerung-Kathmandu rail, the 762MW Tamor Hydroelectricity Project, the 426MW Phuket Karnali were on the to do list. However, more than any other nation, China invested US$188 million in Nepal during the 2020–21 fiscal year. During KP Sharma Oli’s visit to Beijing in 2016, Nepal and China also ratified a transit transport agreement for commerce with other parties.
However, amidst the current global tension and the changing rapport of international politics, China remains as a key investor in Nepal. Besides, the recent activities from the Nepal administration showed a shift in policy domain from the previous regime which in some cases was rigid to Chinese projects. Meanwhile, the BRI becomes more eminent in the strategic, political and economic domain of the status quo. Against such backdrop, the next sections will discuss current trends of the BRI in Nepal.
Nine Projects: Token of Continuation of the Initiative
Nepal put forward nine potential projects to be undertaken under the BRI at the beginning of 2019. These included setting up a technical institution in Nepal, building new highways, tunnels, and hydroelectricity dams, as well as conducting a feasibility assessment for a trans-Himalayan railway that would connect Jilong/Keyrung, a Chinese port of entry, with Kathmandu. This enhanced the significance of the project which will direct to more prosperous China- Nepal relations.
Nepal, the “Pillar”
Hou Yanqi, the Chinese ambassador to Nepal, stated in April 2022 that Nepal was one of the BRI’s most significant pillars and that projects were still moving forward despite the “speed of pragmatic collaboration” slowing down because of the coronavirus pandemic and Nepal’s changing political climate.
Transit Through China: Better Connectivity and Trade
Kathmandu protocol agreement with Beijing, Nepal will import and export goods from a third country through China through Tianjin, Shenzhen, Lianyungang and Zhanjiang seaports and land ports of Lanzhou, Lhasa and Shigatse. They will also get the facility of transporting goods through six dedicated transit points of the two countries. It will boost the trade for improved connectivity.
Extended Cooperation in Domains Except for BRI
In addition to the BRI projects, China is currently making significant investments in Nepal’s infrastructure, including ring road expansion, dry ports at the border crossings of Larcha and Syabrubesi, the establishment of China Study Centers, a new international airport in Pokhara, and optical fiber cable connectivity from Kathmandu to the Chinese border.
Energy Exploration: New Domain of Cooperation
China is also looking into the prospect of discovering gas and oil deposits in Nepal and is building a border river crossing at Hilsa, Humla. It will open a new domain of cooperation based on mutual interest.
Poverty Reduction and Generating Newer Income Sources
Currently, roughly six Chinese airlines offer regular flights to Nepal. Nepal has the fastest-growing Chinese tourist industry. Nepal granted China access to choose 16 Himalayan regions that border China to develop as part of a program to fight poverty.
Security: Bringing Peace
Joint military drills between China and Nepal are also a new development in security cooperation. It will bring peace in the region since the image of Nepal is very clean.
Increased Diplomatic Connectivity
The BRI appears to be one of the three priority pillars for the Chinese government’s organizing principles of foreign policy, along with the Global Development Initiatives and the Global Security Initiatives, in terms of developing successful international relations rather than just an economic endeavor. It will bring a fresh start in the diplomatic domain of both countries and the future prospects of ties in the diplomatic arena can be discussed robustly.
No More Landlockedness
Under BRI and the Trans-Himalayan Multi-dimensional Connectivity Network, which will transform Nepal from a landlocked country to a land-linked one, there are multiple road, sea, and corridor networks throughout the world. It will boost the relationship to a great extent while there will be a surge in the arena of export and import.
The extension of the Qingzang railway from Tibet to Nepal and the border with India is among the most significant BRI projects. Three routes are being considered for this railway. The first would connect Shigatse to Kathmandu via Kerung and continue on to Pokhara and Lumbini before reaching the Indian border. The second would run from Shigatse to the Burang border and connect Humla and Darchula districts in Nepal with Pithoragdh, Uttarakhand, while the third would link Shigatse to the Yandong border of Sikkim, India.
As China and India have no trade disputes with one another, India would gain from this project as well after trading through this route. In comparison to other industrialized parts of the world, South Asia could see an increase in commerce and investment if this project is carried out on a win-win basis between China and Nepal.
Additionally, loans are typically provided on commercial terms through the Silk Road Fund and the Asian Infrastructure Investment Bank (AIIB), both of which are led by China (SRF). Due to project site clearance delays and the nation’s political instability, along with its comparatively short repayment time, Nepal’s big projects have raised concerns that they may not get off the ground.
Besides, three primary issues with China are of particular concern to the Nepalese government. First, instead of commercial loans, the nation favors grants and lenient loans from China. Second, it wants the interest rate and repayment period to be comparable to those of multilateral funding organizations like the Asian Development Bank and the World Bank. Thirdly, it thinks that bid competitions ought to be allowed for the BRI projects. But the Chinese authorities are not responding on the same page.
The Inception of a Recommenced Cooperation
Pradeep Gawali, Foreign Minister in the KP Sharma Oli’s government, said that from the perspective of Nepal, the BRI projects were the way to be connected to the trans-Himalayan multipurpose connectivity network. Nepal had been able to select the nine projects included in the BRI with great success. However, Chinese authority said on December 26 that it looks forward to cooperating with the new government to advance projects under the ambitious Belt and Road Initiative, a day after the Maoist party chairman Pushpa Kamal Dahal alias Prachanda was named as Nepal’s new prime minister (BRI). China aims to develop initiatives under the Belt and Road collaboration, according to Mao Ning, the official spokesperson for the Chinese foreign ministry, who congratulated Prachanda on his appointment. Beijing claims that as a longtime ally and neighbor of Nepal, China cherishes Nepali relations very highly. China is prepared to collaborate with the new Nepalese administration to broaden and deepen friendly relations and cooperation on all fronts, pursue high-quality Belt and Road cooperation, strategic cooperative alliance marked by enduring friendship for growth and prosperity new impetus, and bring more benefits to peoples from both sides.
Hence, it is evident that China’s policy toward Nepal is generally stable and uncomplicated, and the two countries’ bilateral relations have been cordial and shaped by Nepal’s strategy of balancing the divergent impact of China and its southern neighbor. Through BRI projects, Nepal could gain better connectivity relations with its northern neighbors, but in order to do so, Nepal must enhance its negotiations with China.
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