Archive for ‘GeoPolitics’

10/04/2013

* Antony warns Army against threats from China, Pakistan

Times of India: “India’s deep unease over China’s growing military might and assertiveness as well as intransigence about the boundary dispute resonated at a military brass conclave on Monday, with defence minister AK Antony also underlining the threat posed by the expansive nexus forged between Beijing and Islamabad.

Português: Nova Délhi (Índia) - Desfile do Dia...

Português: Nova Délhi (Índia) – Desfile do Dia da República, na Rajpath. (Photo credit: Wikipedia)

China’s approach to India on the long-standing boundary dispute and other issues, even after the recent leadership change in Beijing, “is not likely to change” in the foreseeable future. Consequently, the Indian armed forces need to “constantly develop” their capabilities to achieve “minimum credible deterrence” against China, said Antony.

The minister, addressing the closed-door Army commanders’ conference, did point out the government was trying to resolve issues with China in a “peaceful” manner, and also cited the new bilateral boundary management mechanism as “a positive development”.

But Antony also stressed it was crucial to modernize the armed forces to counter China’s “military assertiveness”, including its massive development of military infrastructure along the 4,057-km Line of Actual Control (LAC) as well as in other neighbouring countries, like the Gilgit-Baltistan areas of Pakistan, said MoD sources.

India has belatedly taken some steps to strategically counter China but much more needs to be done at a rapid clip. While IAF is now progressively basing Sukhoi-30MKI fighters in the north-east and the Navy is bolstering force-levels on the eastern seaboard, the Army’s Rs 81,000-crore plan to raise a new mountain strike corps with associated structures is yet to take off.”

via Antony warns Army against threats from China, Pakistan – The Times of India.

07/04/2013

* China deplores Korea tension, warns against regional turmoil

My belief is that the world has got it wrong.  

I believe that North Korea is trying to reprise the plot of the film The Mouse That Roared which is a 1955 Cold War satirical novel by Irish-American writer Leonard Wibberley, which launched a series of satirical books about an imaginary country in Europe called the Duchy of Grand Fenwick. Wibberley went beyond the merely comic, using the premise to make still-quoted commentaries about modern politics and world situations, including the nuclear arms racenuclear weapons in general, and the politics of the United States.  

The Plot: The tiny (three miles by five miles) European Duchy of Grand Fenwick, supposedly located in the Alps between Switzerland and France, proudly retains a pre-industrial economy, dependent almost entirely on making Pinot Grand Fenwick wine. However, an American winery makes a knockoff version, “Pinot Grand Enwick”, putting the country on the verge of bankruptcy.

The prime minister decides that their only course of action is to declare war on the United States. Expecting a quick and total defeat (since their standing army is tiny and equipped with bows and arrows), the country confidently expects to rebuild itself through the generous largesse that the United States bestows on all its vanquished enemies (as it did for Germany through the Marshall Plan at the end of World War II and for Japan through the McArthur Plan).

From http://en.wikipedia.org/wiki/The_Mouse_That_Roared

Nothing else makes sense.

Reuters: “China deplored tension on the Korean peninsula on Sunday and in an apparent reference to North Korea, said no country should be allowed to plunge the region into chaos after the United States postponed a missile test to ease talk of war.

North Korean soldiers take part in a shooting drill in an unknown location in this picture taken on April 6, 2013 and released by North Korea's official KCNA news agency in Pyongyang on April 7, 2013. REUTERS-KCNA

The North, led by 30-year-old Kim Jong-un, has been issuing threats of war against the United States and U.S.-backed South Korea since the United Nations imposed sanctions after its third nuclear weapon test in February.”

via China deplores Korea tension, warns against regional turmoil | Reuters.

 

02/04/2013

* China’s Glass Ceiling

Foreign Policy: “It’s over for America,” a Chinese academic told me in late 2008, two days after Goldman Sachs turned itself into a commercial bank in order to fend off possible collapse. “From here on, it’s all downhill.” Sitting in Beijing as American capitalism seemed to be hanging by a thread, it was easy to believe that one era was ending and another beginning.

The past half-decade should have been the glory years for the spread of Chinese influence around the world. After China’s ravishing 2008 Beijing Summer Olympics, and its startling recovery from the financial crisis, it had a platform to push for a bigger voice in international affairs. At a time when the United States has been navel-gazing on its own deficiencies and beset by dysfunction and infighting in Congress, China has quickly become the main trading partner for a long list of countries, not just in Asia, which should give it all sorts of sway. And at the very least, many Chinese assume, the country should start to resume its role as the natural leader in Asia.

Yet the years since the crisis have demonstrated something very different. Rather than usher in a new era of Chinese influence, Beijing’s missteps have shown why it is unlikely to become the world’s leading power. Even if it overtakes the United States to have the biggest economy in the world, which many economists believe could happen over the next decade, China will not dislodge Washington from its central position in global affairs for decades to come.

China is certainly not lacking in ambition, even if many of its final goals are not clearly articulated. It is implementing plans which challenge U.S. military, economic, and even political supremacy. But on each front, the last few years have demonstrated China’s limitations, not the inevitability of its rise.

China’s effort to gradually squeeze the U.S. Navy out of the Western Pacific did not start with the financial crisis in 2008. The financial crisis did, however, coincide with a new aggressiveness in the way China has pushed its territorial claims in the South China Sea and the East China Sea. Beijing has scored at least one victory, securing control of the Scarborough Shoal, a group of small islands in the South China Sea, from the Philippines in 2012.

But among these tactical successes, China has been sowing the seeds of a strategic defeat. China’s assertiveness is generating intense suspicion, if not outright enmity, among its neighbors. Its “peaceful rise” is not taking place in isolation. There may be echoes in today’s Asia of the late-nineteenth century in Europe and North America, but this is the one critical difference. The United States came into its own as a great power without any major challenge from its neighbors, while Germany’s ascent was aided by the collapsing Austro-Hungarian and Ottoman empires and Russian monarchy on its frontiers. China, on the other hand, is surrounded by vibrant countries with fast-growing economies, from South Korea to India to Vietnam, who all believe that this is their time, as well. Even Japan, after two decades of stagnation, still has one of the most formidable navies in the world, as well as the world’s third largest economy. China’s strategic misfortune is to be bordered by robust and proud nation-states which expect their own stake in the modern world.

The last few years have shown that these countries have no desire to return to a Sinocentric Asia, as existed before the arrival of Western powers in the late-fifteenth century, and one where China is the undisputed leader. All the talk about the Obama administration’s “pivot” to Asia has obscured the much bigger shift that has taken place in the region since the crisis — almost all of China’s neighbors are now deeply anxious about what a powerful, expansionist leadership in Beijing portends for their future. They still want to trade with China, but they also want protection from Beijing’s bullying.”

via China’s Glass Ceiling – By Geoff Dyer | Foreign Policy.

02/04/2013

Let us hope this author is correct.

25/03/2013

* Behind China’s Switch to High-End Exports

WSJ: “As rising labor costs push manufacturing of T-shirts, jeans and the like out of China, the country has been able to offset that loss by grabbing the high end.

[image]

And nowhere is that on better display than the San Francisco-Oakland Bay Bridge.

When the switch is flipped each night for the span’s two-year artistic light show, the electricity flows through sophisticated power devices made by Gary Hua’s factory not far from Shanghai.

In the six years since it was founded, his company has grown to 1,000 employees, who last year made three million power-supply units for high-efficiency light-emitting diodes. The company, Inventronics Inc., expects to double production this year and export more than half that output.

With labor costs increasing in China, the country is now shifting its manufacturing focus to high-tech exports such as computers and sophisticated power devices. Shaun Rein of China Markets Research tells the WSJ’s Jake Lee how Western countries are reacting.

More Related Video

The Bay Lights” Transforms San Francisco Skyline

Inventronics exemplifies China’s shift toward producing the higher-end products that are fueling the country’s export growth. China has been increasing exports in industries as varied as computers, car parts, high-technology lamps and optical-surgical equipment, according to a Wall Street Journal analysis of Chinese, European Union and U.S. trade data.

HSBC economists estimate that China’s share of global exports increased to 11% last year, from 9% before the 2008 financial crisis and around 5% at the turn of the millennium. China’s exports rose 8% last year while global trade expanded just 1.6%, according to the Netherlands Bureau for Economic Policy Analysis.

Chinese employment in higher-value industries such as electrical- and communications-equipment production has jumped since 2008 and now exceeds employment in textiles, garments and leather making, says Royal Bank of Scotland RBS.LN +0.68% economist Louis Kuijs.

High-tech goods are more valuable and are a bigger market than clothes. Over the past two years, Chinese exports to the U.S. of high-tech electronics, auto parts and optical devices rose 24%, to $129 billion, while exports of clothes and footwear rose just 5% to $47 billion. That has caused China’s share of the U.S. trade deficit to expand $20 billion last year to a record $315 billion, according to a U.S. government analysis.

A chunk of what is marked “Made in China” is made up of parts and design that originated elsewhere, making trade data a little fuzzy. The chips in Inventronics’ LED drivers are from the U.S., for example.

But China’s exports contain a rising percentage of materials that were made in the country, according to the World Trade Organization and the Organization for Economic Cooperation and Development. In 2009, the latest year for which figures are available, 28% of the value of Chinese exports came from foreign producers. In 2005, the figure was 36%.”

via Behind China’s Switch to High-End Exports – WSJ.com.

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25/03/2013

* China’s Xi tells Africa he seeks relationship of equals

Reuters: “China’s new president told Africans on Monday he wanted a relationship of equals that would help the continent develop, responding to concerns that Beijing is only interested in shipping out its raw materials.

TANZANIA-DAR ES SALAAM-CHINA-XI JINPING-ARRIVAL

On the first stop on an African tour that will include a BRICS summit of major emerging economies, Xi Jinping told Tanzanian President Jakaya Kikwete that China’s involvement in Africa would help the continent grow richer.

“China sincerely hopes to see faster development in African countries and a better life for African people,” Xi said in a speech laying out China’s policy on Africa, delivered at a conference center in Dar es Salaam built with Chinese money.

Renewing an offer of $20 billion of loans to Africa between 2013 and 2015, Xi pledged to “help African countries turn resource endowment into development strength and achieve independent and sustainable development”.

Africans broadly see China as a healthy counterbalance to Western influence but, as ties mature, there are growing calls from policymakers and economists for a more balanced trade deal.

“China will continue to offer, as always, necessary assistance to Africa with no political strings attached,” Xi said to applause. “We get on well and treat each others as equals.”

But gratitude for that aid is increasingly tinged with resentment about the way Chinese companies operate in Africa where industrial complexes staffed exclusively by Chinese workers have occasionally provoked riots by locals looking for work.

Countering concerns that Africa is not benefitting from developing skills or technology from Chinese investment, Xi said China would train 30,000 African professionals, offer 18,000 scholarships to African students and “increase technology transfer and experience”.”

via China’s Xi tells Africa he seeks relationship of equals | Reuters.

24/03/2013

* Africa’s trade ties with China in spotlight as President Xi visits

Reuters: “Chinese President Xi Jinping faces growing calls from policymakers and economists in Africa for a more balanced trade relationship between the continent and China as he arrives in Tanzania at the beginning of an African tour on Sunday.

Chinese President Xi Jinping adjusts his earphones during his visit to the Moscow State Institute of International Relations in Moscow March 23, 2013. REUTERS/Sergei Karpukhin

China’s ties with the continent dates back to the 1950s, when Beijing backed African liberation movements fighting to throw off Western colonial rule. It has built roads, railways, stadiums and pipelines to win access to Africa’s oil and minerals like copper and uranium to feed its booming economy.

Many across Africa see China as a valuable counterbalance to the West’s influence. But as the relationship matures there is mounting discomfort in Africa that the continent is exporting raw materials while spending heavily to import finished consumer goods from the Asian economic powerhouse.

“He will be looking to tone down the feeling that China is just here to exploit resources. I think that is going to be his main job,” James Shikwati, director of the Nairobi-based Inter Regional Economic Network think tank, told Reuters.

China’s new leader is due to land in Tanzania’s commercial capital, Dar es Salaam, on Sunday for a state banquet before delivering his first policy speech on Africa in a Chinese-funded conference hall on Monday.

Xi will go on from Tanzania to South Africa where leaders of the world’s major emerging economies, known as the BRICS, will meet on Tuesday and Wednesday and could endorse plans to create a joint foreign exchange reserves pool and an infrastructure bank at a summit.

The proposal underscores frustrations among emerging markets at having to rely on the World Bank and International Monetary Fund, which are seen as reflecting the interests of the United States and other industrialized nations.

Xi’s visit to Africa – which ends in the Republic of Congo – on his first trip abroad is seen as a demonstration of Africa’s strategic importance to China, driven by Beijing’s hunger for resources and African demand for cheap Chinese imports.”

via Africa’s trade ties with China in spotlight as President Xi visits | Reuters.

12/03/2013

* Africa told to view China as competitor

CNN: “Africa must shake off its romantic view of China and accept Beijing is a competitor as much as a partner and capable of the same exploitative practices as the old colonial powers, Nigeria’s central bank governor has warned.

As manufacturing in Africa slows, Nigeria's central bank governor cautions against exploitative forms of trade with China.

Reflecting the shifting views of a growing number of senior African officials who fear the continent’s anaemic industrial sector is being battered by cheap Chinese imports, Lamido Sanusi cautions that Africa is “opening itself up to a new form of imperialism”.

“China takes from us primary goods and sells us manufactured ones. This was also the essence of colonialism,” he writes in the Financial Times. His remarks are among the most trenchant yet by a serving African official about the continent’s ties with the world’s second largest economy.

Trade between China and Africa was worth more than $200bn in 2012, 20 times what it was in 2000 when Beijing committed to a policy of accelerated engagement. It has been a period of strong growth partly thanks to Asian demand for African resources . But a boom in commodities, services and consumer spending has coincided with the relative decline of African manufacturing from 12.8 per cent to 10.5 per cent of regional GDP, according to UN figures.”

via Africa told to view China as competitor – CNN.com.

10/03/2013

* China to buy super quiet Russian submarines to counter US aircraft carrier

China Daily Mail: “According to Russian Foreign TV News Net’s report on March 5, Japan’s Mainichi Shimbun believed the Taiwan military’s allegation that Mainland China has entered into a contract with Russia on the purchase of Amur-class (the export version of Lada-class) diesel-electric submarines.

Kilo Class Submarine

It is a part of China’s plan to achieve modernisation of its troops and build up a marine superpower and aims at countering US aircraft carriers and preventing them from interfering with Taiwan affairs.

Japan’s Mainichi Shimbun pointed out: the Russian Lada-class submarine is an upgraded version of the Kilo-class ones, which are well-known for their extremely low noise. China will import four export-version Lada-class submarines, of which two will be build in Russia while the other two, in China. It is expected that a submarine supply agreement that really meets the requirements will not be concluded for two to three years.

Having been certain that China-made Type 041 Yuan-class submarines generate too loud a noise, China has decided to order Russia’s new-type submarines. It is said that in 2004, China successfully developed its Yuan-class submarines on the basis of imported technology of Kilo-class submarine and has vigorously used such submarines in its military drills over the past 5 years. However, due to relatively loud noise, the submarines have been discovered and recorded by US military’s SONAR and radar system.

The Japanese media believed: China is drafting a strategy to protect the nation and prevent enemy invasion across the first island chain, including the Japanese Archipelago, Taiwan and the Philippines. For that purpose, China plans to use guided missiles and submarines. In case of potential emergence of conflict in the Taiwan Strait, under specific circumstances, China could prevent the US from interfering with China’s internal affairs.

Taiwan’s military is worried that China’s import of new-type submarines from Russia will bring more trouble to US aircraft carriers in the Taiwan Strait area. China already has 60 submarines. In addition to the Kilo-class submarines imported from Russia from 1994 to 2002, China has its first batch of China-made Song-class submarines developed by China on its own. Most of the Kilo-class submarines and similar submarines developed by China on its own are deployed in the East China Sea Navy’s base in Ningbo City, Zhejiang Province. It is expected that the Amur-class submarines imported from Russia will also be deployed there.”

Sources: mil.huanqiu.com “China is said to buy super quiet upgraded version of Kilo-class submarines to counter US aircraft carriers” (translated by Chan Kai Yee)

via China to buy super quiet Russian submarines to counter US aircraft carrier | China Daily Mail.

07/03/2013

* China’s Central Asia Problem

International Crisis Group: “Since the collapse of the Soviet Union, China and its Central Asian neighbours have developed a close relationship, initially economic but increasingly also political and security. Energy, precious metals, and other natural resources flow into China from the region.

Chinese President Hu Jintao and Kazakhstan's President Nursultan Nazarbayev review Chinese honour guardsInvestment flows the other way, as China builds pipelines, power lines and transport networks linking Central Asia to its north-western province, the Xinjiang Uighur Autonomous Region. Cheap consumer goods from the province have flooded Central Asian markets. Regional elites and governments receive generous funding from Beijing, discreet diplomatic support if Russia becomes too demanding and warm expressions of solidarity at a time when much of the international community questions the region’s long-term stability. China’s influence and visibility is growing rapidly. It is already the dominant economic force in the region and within the next few years could well become the pre-eminent external power there, overshadowing the U.S. and Russia.

Beijing’s primary concern is the security and development of its Xinjiang Autonomous Region, which shares 2,800km of borders with Kazakhstan, Kyrgyzstan and Tajikistan. The core of its strategy seems to be creation of close ties between Xinjiang and Central Asia, with the aim of reinforcing both economic development and political stability. This in turn will, it is hoped, insulate Xinjiang and its neighbours from any negative consequences of NATO’s 2014 withdrawal from Afghanistan. The problem is that large parts of Central Asia look more insecure and unstable by the year. Corruption is endemic, criminalisation of the political establishment widespread, social services in dramatic decline and security forces weak. The governments with which China cooperates are increasingly viewed as part of the problem, not a solution, as Chinese analysts privately agree. There is a risk that Central Asian jihadis currently fighting beside the Taliban may take their struggle back home after 2014. This would pose major difficulties for both Central Asia and China. Economic intervention alone might not suffice.

There are other downsides to the relationship. Its business practices are contributing to a negative image in a region where suspicions of China – and nationalist sentiments – are already high. Allegations are growing of environmental depredation by Chinese mines, bad working conditions in Chinese plants, and Chinese businessmen squeezing out competitors with liberal bribes to officials. Merited or not, the stereotype of China as the new economic imperialist is taking root.

Beijing is starting to take tentative political and security initiatives in the region, mostly through the Shanghai Cooperation Organisation (SCO), which, however, has shown itself ineffective in times of unrest. The other major external players in Central Asia are limited by their own interests or financial capacity. The speed of the U.S. military pull-out from Afghanistan is causing concern in Chinese policy circles, and though Russia claims privileged interests in Central Asia, it lacks China’s financial resources. It is highly likely in the near- to mid-term that China will find itself required to play a larger political role.

China’s well-trained and well-informed Central Asia specialists are among those who fear that a disorderly or too rapid withdrawal of NATO troops from Afghanistan could lead to serious regional unrest – civil strife possibly, the dramatic weakening of central governments, or the escalation of proxy battles among Afghanistan’s neighbours leading to their destabilisation and, most worryingly, Pakistan’s. They are critical of Central Asian leaders’ corruption and lack of competence, as well of the criminalisation of political establishments in the region, and privately express great concern about the long-term prospects for the two weakest states, Kyrgyzstan and Tajikistan. They are as anxious as the West, probably more so, about the region’s vulnerability to a potential well-organised insurgent challenge, from within or without.

This concern has led Chinese policymakers to consider engagement with elements of the Taliban, in an effort to induce them to scale back their perceived support for Uighur separatist groups, such as the East Turkestan Islamic Movement (ETIM). The depth of Beijing’s worry over possible threats emanating from Afghanistan was demonstrated when it sent its then security chief, Zhou Yongkang, to Kabul in September 2012, just before China’s once-in-a-decade leadership transition. Zhou, the most senior Chinese official to visit in 50 years, pledged reconstruction assistance and limited security help in the form of police training. Though publicly they support Central Asian leaders and express confidence in their political viability, Chinese policy makers have yet to come up with a clear plan to work toward stability in both Afghanistan and Central Asia.

China has unambiguously ruled out any sort of military intervention in its uneasy Central Asia neighbourhood, even in a case of extreme unrest. In the coming years, however, events may force its leadership to make difficult decisions. It will almost surely need to use at least more active diplomatic and economic engagement to grapple with challenges that pose threats to its economic interests and regional stability.

via China’s Central Asia Problem – International Crisis Group.

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