Chindia Alert: You’ll be Living in their World Very Soon
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Nations may need help from China during virus outbreaks but remain wary of Beijing as adversary in disputed waters
Analysts say code of conduct negotiations are too sensitive and important for virtual meetings and may be delayed until coronavirus crisis is resolved
On April 18, the US Navy Ticonderoga-class guided missile cruiser USS Bunker Hill (front) and Arleigh-Burke class guided-missile destroyer USS Barry transit the South China Sea. The presence of both Chinese and American navy ships in the area in recent weeks worries Southeast Asian nations. Photo: US Navy
Negotiations between China and its Southeast Asian neighbours for a South China Sea
code of conduct have been postponed as the nations involved put their efforts into containing the Covid-19 pandemic, creating uncertainty about whether the two sides can work together amid rising tensions in the contested territory.
Southeast Asian nations are increasingly caught in a dilemma whether to maintain relations with Beijing during the pandemic while also fearing that tensions over the disputed waters are spiralling out of control. Both Chinese and United States navies are sending vessels to the area more frequently.
Indonesian Foreign Minister Retno Marsudi expressed concern over recent activities in the South China Sea, noting that they might potentially escalate tensions at a time when global collective effort to fight Covid-19 was essential.
Speaking on Wednesday, she called on all parties to respect international law, particularly the United Nations Convention on the Law of the Sea.
“While negotiation of the code of conduct is being postponed due to Covid-19, Indonesia calls on all relevant parties to exercise self-restraint and to refrain from undertaking action that may erode mutual trust and potentially escalate tension in the region,” she said.
Indonesia’s Foreign Minister Retno Marsudi. Photo: AP
Calls for a binding code of conduct surfaced in 1995 when China occupied Mischief Reef
, a maritime feature claimed by the Philippines. China did not agree to start talks until 1999, and subsequent negotiations led to a non-binding Declaration on Conduct in 2002.
The Association of Southeast Asian Nations (Asean) and China agreed in 2018 on a draft code laying the foundations for conduct in the disputed waters. At that time, Chinese Premier Li Keqiang said China hoped to complete the negotiation by the end of 2021, a move he said could show China and Asean could jointly maintain regional peace.
Named and claimed: is Beijing spoiling for a new fight in the South China Sea?
27 Apr 2020
But tensions over the South China Sea have not calmed and, in fact, have surged in recent months with both Beijing and Washington seen to be using the Covid-19 pandemic to create a stronger presence there.
This year, the US has conducted four freedom of navigation operations in the South China Sea and China has scrambled air and sea patrols to expel US vessels.
The confrontation between Beijing and Southeast Asian nations has also intensified. Last month, a Vietnamese fishing boat sank after a collision with a Chinese coastguard vessel near the Paracel Islands, known in China as the Xisha Islands, and in Vietnam as the Hoang Sa Islands.
On Saturday, the 35th escort fleet of the Chinese navy also conducted drills in the Spratly Islands chain – known as Nansha Islands in China – after completing an operation in the Gulf of Aden, off Somalia. Analysts said the drill aimed to boost far-sea training for combat ships and boost protection against piracy for Chinese merchant ships.
Collin Koh, a research fellow at the S. Rajaratnam School of International Studies, based at Nanyang Technological University in Singapore, said the code of conduct talks had been delayed because of the pandemic, but Beijing was consolidating its position in the South China Sea amid the outbreak.
“So it’s doing what it can now to consolidate and further enhance its position before talks restart, and by then these moves will raise Beijing’s leverage in the negotiations with its Asean counterparts,” he said.
“The current situation gives it a window of opportunity amid this interlude on the talks, to further advance its physical hold in the South China Sea, especially while Asean parties have their hands full on the pandemic”.
Asean nations have turned their attention to coping with coronavirus outbreaks in their own countries. On April 14, a live video conference for the special Asean Plus Three Summit on the coronavirus pandemic was held in Hanoi. Photo: AFP
Kang Lin, a researcher with Hainan University, said progress for the code of conduct would still go ahead, but it might be affected as face-to-face meetings between officials were disrupted.
“The negotiations involves multiple departments, such as diplomacy, maritime affairs, fisheries and even oil and gas-related departments,” he said, adding that those discussions might go online and might not be as effective.
“It is not easy to predict to what extent it will affect next year's goals. If the pandemic cannot be eliminated in the first half of next year, it may be longer than the three-year period we had previously scheduled,” he said.
Richard Heydarian, an academic and former Philippine government adviser, said video-conference meetings would be inadequate for negotiations about the future of the South China Sea.
“The problem with the negotiation of the code is that these are very sensitive, difficult negotiations. I don't think you can really do it just online, these are things that are done in the corridors of power,” he said. “It’s close to impossible to have that right now with the suspension of all international meetings in the Asean.”
Heydarian said Southeast Asian nations hoped to get help from China to contain the pandemic, but were showing unease about Beijing.
“I think there is a lot of resentment building against China,” he said. “There is also a lot of desperation to get assistance from China and, at the same time, complete helplessness with the fact that it is very hard to conduct any important extended international meeting on the level of Asean and beyond under current circumstances.”
Chinese Foreign Ministry spokesman Hua Chunying said on Thursday that China would push forward negotiations on the code of conduct, and hoped the code would be useful for peace and stability over the South China Sea.
The richest man in China opened his own Twitter account last month, in the middle of the Covid-19 outbreak. So far, every one of his posts has been devoted to his unrivalled campaign to deliver medical supplies to almost every country around the world.
“One world, one fight!” Jack Ma enthused in one of his first messages. “Together, we can do this!” he cheered in another.
The billionaire entrepreneur is the driving force behind a widespread operation to ship medical supplies to more than 150 countries so far, sending face masks and ventilators to many places that have been elbowed out of the global brawl over life-saving equipment.
But Ma’s critics and even some of his supporters aren’t sure what he’s getting himself into. Has this bold venture into global philanthropy unveiled him as the friendly face of China’s Communist Party? Or is he an independent player who is being used by the Party for propaganda purposes? He appears to be following China’s diplomatic rules, particularly when choosing which countries should benefit from his donations, but his growing clout might put him in the crosshairs of the jealous leaders at the top of China’s political pyramid.
Other tech billionaires have pledged more money to fight the effects of the virus – Twitter’s Jack Dorsey is giving $1bn (£0.8bn) to the cause. Candid, a US-based philanthropy watchdog that tracks private charitable donations, puts Alibaba 12th on a list of private Covid-19 donors. But that list doesn’t include shipments of vital supplies, which some countries might consider to be more important than money at this stage in the global outbreak.
The world’s top coronavirus financial donors
How Alibaba compares to the top five. No one else other than the effervescent Ma is capable of dispatching supplies directly to those who need them. Starting in March, the Jack Ma foundation and the related Alibaba foundation began airlifting supplies to Africa, Asia, Europe, Latin America and even to politically sensitive areas including Iran, Israel, Russia and the US.
Ma has also donated millions to coronavirus vaccine research and a handbook of medical expertise from doctors in his native Zhejiang province has been translated from Chinese into 16 languages. But it’s the medical shipments that have been making headlines, setting Ma apart.
“He has the ability and the money and the lifting power to get a Chinese supply plane out of Hangzhou to land in Addis Ababa, or wherever it needs to go,” explains Ma’s biographer, Duncan Clark. “This is logistics; this is what his company, his people and his province are all about.”
A friendly face
Jack Ma is famous for being the charismatic English teacher who went on to create China’s biggest technology company. Alibaba is now known as the “Amazon of the East”. Ma started the company inside his tiny apartment in the Chinese coastal city of Hangzhou, in the centre of China’s factory belt, back in 1999. Alibaba has since grown to become one of the dominant players in the world’s second largest economy, with key stakes in China’s online, banking and entertainment worlds. Ma himself is worth more than $40bn.
Officially, he stepped down as Alibaba’s chairman in 2018. He said he was going to focus on philanthropy. But Ma retained a permanent seat on Alibaba’s board. Coupled with his wealth and fame, he remains one of the most powerful men in China.
Media caption The BBC’s Secunder Kermani and Anne Soy compare how prepared Asian and African countries are
It appears that Ma’s donations are following Party guidelines: there is no evidence that any of the Jack Ma and Alibaba Foundation donations have gone to countries that have formal ties with Taiwan, China’s neighbour and diplomatic rival. Ma announced on Twitter that he was donating to 22 countries in Latin America. States that side with Taiwan but who have also called for medical supplies – from Honduras to Haiti – are among the few dozen countries that do not appear to be on the list of 150 countries. The foundations repeatedly refused to provide a detailed list of countries that have received donations, explaining that “at this moment in time, we are not sharing this level of detail”.
However, the donations that have been delivered have certainly generated a lot of goodwill. With the exception of problematic deliveries to Cuba and Eritrea, all of the foundations’ shipments dispatched from China appear to have been gratefully received. That success is giving Ma even more positive attention than usual. China’s state media has been mentioning Ma almost as often as the country’s autocratic leader, Xi Jinping.
AFP
So far…
Over 150 countries have received donations from Jack Ma, including about:
120.4mface masks
4,105,000testing kits
3,704ventilators
Source: Alizila
It’s an uncomfortable comparison. As Ma soaks up praise, Xi faces persistent questions about how he handled the early stages of the virus and where, exactly, the outbreak began.
The Chinese government has dispatched medical teams and donations of supplies to a large number of hard-hit countries, particularly in Europe and South-East Asia.
However, those efforts have sometimes fallen flat. China’s been accused of sending faulty supplies to several countries. In some cases, the tests it sent were being misused but in others, low-quality supplies went unused and the donations backfired.
In contrast, Jack Ma’s shipments have only boosted his reputation.
“It’s fair to say that Ma’s donation was universally celebrated across Africa,” says Eric Olander, managing editor of the China Africa Project website and podcast. Ma pledged to visit all countries in Africa and has been a frequent visitor since his retirement.
“What happens to the materials once they land in a country is up to the host government, so any complaints about how Nigeria’s materials were distributed are indeed a domestic Nigerian issue,” Olander adds. “But with respect to the donation itself, the Rwandan leader, Paul Kagame, called it a “shot in the arm” and pretty much everyone saw it for what it was which was: delivering badly-needed materials to a region of the world that nobody else is either willing or capable of helping at that scale.”
Walking the tightrope
But is Ma risking a backlash from Beijing? Xi Jinping isn’t known as someone who likes to share the spotlight and his government has certainly targeted famous faces before. In recent years, the country’s top actress, a celebrated news anchor and several other billionaire entrepreneurs have all “disappeared” for long periods. Some, including the news anchor, end up serving prison sentences. Others re-emerge from detention, chastened and pledging their allegiance to the Party.
“There’s a rumour that [Jack Ma] stepped down in 2018 from being the chairman of the Alibaba Group because he was seen as a homegrown entrepreneur whose popularity would eclipse that of the Communist Party,” explains Ashley Feng, research associate at the Centre for New American Security in Washington DC. Indeed, Ma surprised many when he suddenly announced his retirement in 2018. He has denied persistent rumours that Beijing forced him out of his position.
Image copyright GETTY IMAGESImage caption Ma discussed trade with then-President-elect Donald Trump in January 2017
Duncan Clark, Ma’s biographer, is also aware of reports that Ma was nudged away from Alibaba following a key incident in January 2017. The Chinese billionaire met with then-President-elect Donald Trump in Trump Tower, ostensibly to discuss Sino-US trade. The Chinese president didn’t meet with Trump until months later.
“There was a lot of speculation of time that Jack Ma had moved too fast,” Clark says. “So, I think there’s lessons learned from both sides on the need to try to coordinate.”
“Jack Ma represents a sort of entrepreneurial soft power,” Clark adds. “That also creates challenges though, because the government is quite jealous or nervous of non-Party actors taking that kind of role.”
Technically, Ma isn’t a Communist outsider: China’s wealthiest capitalist has actually been a member of the Communist Party since the 1980s, when he was a university student.
But Ma’s always had a tricky relationship with the Party, famously saying that Alibaba’s attitude towards the Party was to “be in love with it but not to marry it”.
Even if Ma and the foundations connected to him are making decisions without Beijing’s advance blessing, the Chinese government has certainly done what it can to capitalise on Ma’s generosity. Chinese ambassadors are frequently on hand at airport ceremonies to receive the medical supplies shipped over by Ma, from Sierra Leone to Cambodia.
China has also used Ma’s largesse in its critiques of the United States. “The State Department said Taiwan is a true friend as it donated 2 million masks,” the Chinese Foreign Ministry tweeted in early April. “Wonder if @StateDept has any comment on Jack Ma’s donation of 1 million masks and 500k testing kits as well as Chinese companies’ and provinces’ assistance?”
Perhaps Ma can rise above what’s happened to so many others who ran afoul of the Party. China might just need a popular global Chinese figure so much that Ma has done what no one else can: make himself indispensable.
“Here’s the one key takeaway from all that happened with Jack Ma and Africa: he said he would do something and it got done,” explains Eric Olander. “That is an incredibly powerful optic in a place where foreigners often come, make big promises and often fail to deliver. So, the huge Covid-19 donation that he did fit within that pattern. He said he would do it and mere weeks later, those masks were in the hands of healthcare workers.”
Image copyright GETTY IMAGESImage caption Ma at an Electronic World Trade Platform event with Ethiopian Prime Minister Abiy Ahmed last year
Duncan Clark argues that Ma already had a seat at China’s high table because of Alibaba’s economic heft. However, his first-name familiarity with world leaders makes him even more valuable to Beijing as China tries to repair its battered image.
“He has demonstrated the ability, with multiple IPOs under his belt, and multiple friendships overseas, to win friends and influence people. He’s the Dale Carnegie of China and that certainly, we’ve seen that that’s irritated some in the Chinese government but now it’s almost an all hands on deck situation,” Clark says.
There’s no doubt that China’s wider reputation is benefiting from the charitable work of Ma and other wealthy Chinese entrepreneurs. Andrew Grabois from Candid, the philanthropic watchdog that’s been measuring global donations in relation to Covid-19, says that the private donations coming from China are impossible to ignore.
“They’re taking a leadership role, the kind of thing that used to be done by the United States,” he says. “The most obvious past example is the response to Ebola, the Ebola outbreak in 2014. The US sent in doctors and everything to West Africa to help contain that virus before it left West Africa.”
Chinese donors are taking on that role with this virus.
“They are projecting soft power beyond their borders, going into areas, providing aid, monetary aid and expertise,” Grabois adds.
So, it’s not the right time for Beijing to stand in Jack Ma’s way.
“You know, this is a major crisis for the world right now,” Duncan Clark concludes. “But obviously, it’s also a crisis for China’s relationship with the rest of the world. So they need anybody who can help dampen down some of these those pressures.”
China’s Skyrizon Aircraft Holdings bought a majority stake in Motor Sich, but the shares were frozen in 2017 pending an investigation by Ukraine’s security service
Washington and Beijing have competed for influence in Ukraine since its relations with Moscow soured when Russia annexed the Crimea peninsula in 2014
Chnia’s Skyrizon says it will appeal a Kiev court’s decision to block its purchase of Ukrainian aircraft engine maker Motor Sich. Photo: Getty Images
A court in Kiev has rejected an appeal by Chinese investors to unfreeze the shares of a Ukrainian aircraft engine maker, a setback for the Chinese company that sought to buy the Ukrainian firm in a deal opposed by the United States.
China’s Skyrizon Aircraft Holdings bought a majority stake in Motor Sich, but the shares were frozen in 2017 pending an investigation by Ukraine’s security service (SBU). Washington wants the deal scrapped.
The US and China have competed for influence in Ukraine since its relations with Moscow soured when Russia annexed the Crimea peninsula in 2014.
In its ruling, the court kept the shares frozen, citing the SBU investigation into whether selling Motor Sich sabotages national security by allowing sensitive technology into foreign hands. The ruling was dated March 13, shared with the parties this week.
Skyrizon plans further appeals, said a lawyer involved in the case, speaking anonymously due to the political sensitivity of the case. Zelensky’s office, the US embassy and the Chinese embassy did not respond to requests for comment. Motor Sich and the SBU declined to comment.
Motor Sich severed ties with Russia after the annexation of Crimea. Photo: Wikipedia
Motor Sich severed ties with Russia, its biggest client, after the annexation of Crimea. The wrangle over its future has held up efforts to find new markets, and supporters of a quick resolution say it is now operating at less than half capacity.
“Motor Sich has become a hostage to the geopolitical situation,” former prime minister Anatoliy Kinakh, chairman of an industrial union which has called for the government to resolve the dispute quickly, said.
The state’s anti-monopoly committee has launched its own investigation and says it is waiting to receive more documents before deciding whether to sanction the sale.
President Volodymyr Zelensky’s administration has had to balance strengthening ties to Beijing with keeping the United States, its biggest military aid donor, onside. In recent weeks, Beijing and Washington have both offered aid to Ukraine to fight the coronavirus.
At the moment it is a very difficult task when we have the biggest powers in the world and their interests are in conflict in Ukraine,” Oleksandr Danylyuk, a former top security official under Zelensky, said.
CHINDIA ALERT: You'll be living in their world, very soon 