Tag Archive for: China

Why Keating is wrong about China

At his speech to the National Press Club on Wednesday and in an article in the Australian Financial Review in September, former prime minister Paul Keating gave the strong impression of being a sleepwalker who has simply not caught up with today’s geopolitical reality.

Keating proclaims that China is not out to attack other countries, that it’s not a threat to Australia and that Taiwan is not a vital Australian interest. He also states that China’s recent behaviour is merely typical of any major power ‘in the adolescent phase of their diplomacy’. Like all big states, he says, it has just become ruder as it has got bigger. He rejects any accusations that Beijing is exporting its ideology, is territorially expansionist or is a military aggressor.

Keating believes we are wasting our time seeing China as a potential military threat and that acquiring nuclear-powered attack submarines will have no strategic relevance whatsoever in deterring Beijing. Moreover, he asserts that Australia is at odds with its own geography when, for the first time since the late 1980s, the government has instructed defence planning to focus on our immediate region, which consists of the north-eastern Indian Ocean, maritime and mainland Southeast Asia, and the southwest Pacific. This is the region where we must be able to hold a potential adversary’s forces and infrastructure at risk at a greater distance from our shores.

As to China not exporting a universal ideology, Keating is plainly out of touch with the realities of the new era in China. President Xi Jinping sees what he terms Marxism–Leninism with Chinese characteristics as a potential model for other countries, claiming the international community should view China’s methods as ‘unthreatening and constructive’. Beijing is offering its authoritarian state-capitalist Leninist system as a superior model for developing countries in Asia, Africa and Latin America to follow.

In the leadership’s view, liberalism and the Chinese Communist Party cannot coexist within China, and liberalism’s conception of its values as universal makes active ideological warfare a necessity for Beijing. The CCP expressed this view most directly in a 2013 document called the Communiqué on the Current State of the Ideological Sphere—better known as Document 9—which warned of seven perils subverting the party’s grip on power. Among these threats were notions of Western freedom, democracy and human rights. Xi has consistently reinforced this viewpoint in his public remarks, warning the party that ‘struggles in the ideological field are extraordinarily fierce’ and ‘although they are invisible, they are a matter of life and death’. He has spoken of a ‘treacherous international situation’ and ‘an intensifying contest of two ideologies’.

Thus, Beijing already considers itself locked in an ideological contest with the West. Xi proclaims that Western hostile forces are speeding up their ‘peaceful evolution’ and ‘colour revolution’ in China as a strategy of ‘Westernising and splitting up China overtly and covertly’. Beijing, therefore, sees itself as engaged in a long-running ideological competition with Western liberalism as championed by the US. Nathan Levine of the Asia Society Policy Institute warns those in the West who—like Keating—do not accept the idea of a prolonged Cold War – style ideological confrontation, must recognise ideological competition with China is inescapable.

I find it deeply disturbing that not once does Keating mention China’s continuing terrible human rights record and the fact that the CCP has been responsible for the deaths of 50 million of its own people. Xi is using artificial intelligence and modern intrusive surveillance technologies to ensure absolute obedience of its citizens with the party’s every directive.

As for China not being territorially expansionist, try telling that to Tibet, Xinjiang, India and Taiwan, as well as countries such as the Philippines, Vietnam, Malaysia and Indonesia that border the South China Sea, which Beijing claims in its entirety. Xi lied in 2015 when he told US President Barack Obama that China would not militarise the South China Sea. Recently, Beijing has threatened Taiwan with more than 150 jet fighters and nuclear-capable bombers flying into its air defence zone over four days. And the Global Times, which is a mouthpiece of the CCP, has threatened Australia with ballistic missile strikes with ‘conventional warheads’ if we participate in a war over Taiwan, and with nuclear attack because we are going to buy nuclear-powered submarines.

Keating asserts that Taiwan is not a vital Australian interest. But it is a vibrant democracy of 24 million people on an island. That should be a familiar geopolitical challenge for Australia. Japan sees a military threat to Taiwan as being an existential threat to its own survival, not least because of its proximity. If America fails to defend Taiwan, Japan might well consider acquiring nuclear weapons. Would that not be a matter of vital Australian interest?

Keating also claims that China is remote—12 flying hours—from the Australian coast. That is not correct. The nearest Chinese military base on Fiery Cross Reef in the South China Sea is barely 3,000 kilometres from Darwin. It has a 3,125-metre runway that could be used by China’s H-6N bombers to reach Australia’s north coast in less than four hours. In the last couple of years there have also been strong rumours about Beijing’s interest in establishing a military base in Vanuatu or Papua New Guinea. Defence policy advice for many years to successive Australian governments has been that the establishment of a military base by a potential adversary in the archipelago to our near north or east would be a matter of serious strategic concern that must be dealt with.

Finally, when it comes to nuclear submarines, the US leads the world while China’s submarines are noisy and its ability to detect enemy submarines is poor, especially in deep waters. When Australia eventually acquires eight nuclear-powered attack submarines, the navy would be capable of denying the narrow straits of Southeast Asia to any potential adversary. As to criticism that the AUKUS deal for the submarines compromises Australian sovereignty, we already depend upon cutting-edge US technology—the Collins-class boats operate the US Virginia-class nuclear submarines’ combat system, which requires frequent highly classified updates. Australia is the only other country in the world to have access to this US technology.

Keating out of date and out of touch on Taiwan

On Wednesday, former Australian prime minister Paul Keating fronted the National Press Club in Canberra to present a critique of Australian foreign and defence policy and his take on the strategic outlook. He offered a characterisation of China as a great power to rival the United States, on which there can be no disagreement, and emphasised how this should be welcomed by Australia and understood as an opportunity to remake our role in the region.

Keating trod a familiar path in typically colourful terms by describing China as Australia’s national future and Britain and the US as our imperial past. This narrative has animated Australian politics for 50 years, expressing a distinctive policy and political fixation on the question of Australia’s place in the world and the idealisation of grand visions over the everyday in Australia’s international relations.

When China could be defined in straightforward terms as the world’s biggest developing economy, with its 800-million-strong middle class due to arrive by 2030, understanding China as Australia’s future was relatively straightforward. It aligned well with the export- and market-oriented political economy of which Keating himself was Australia’s main architect in the 1980s and 1990s.

In the Xi Jinping era, however, Beijing has insisted that the world take seriously its distinctive vision of Chinese socialist developmentalism and the centrality of the Chinese Communist Party and its ideology in all aspects of China’s national and international life. In Australia, this has greatly tested the vision for a future with China that has prevailed for a generation, splitting elite policy opinion for the first time in decades and prompting intense and divisive public debate.

For those, like Keating, who still hold on to a vision of a China future for Australia, reasserting its centrality in the Xi era requires ever more elaborate efforts to attenuate China’s authoritarianism and diplomatic belligerence and take increasingly tendentious positions on Beijing’s international behaviour.

This was especially visible in Keating’s comments on Taiwan in the context of China’s military activity in the Taiwan Strait. He began by saying twice that ‘Taiwan is not a vital Australian interest.’ He asserted that in the event of military conflict between China and the US, Australia had no obligation under the ANZUS Treaty to be involved and should not be. He described the promise of ‘one country, two systems’, as described by former Chinese foreign minister Qian Qichen, and suggested that Taipei and Beijing would reach a peaceful, ‘harmonious’ negotiated settlement. Questioned by a journalist, he said, ‘The whole world regards China and Taiwan as one country’ and that Beijing’s offer to Taipei is benign, even generous.

Keating is wrong on these points. On Australia’s interests, Taiwan is Australia’s 12th-largest trading partner and the two economies are highly complementary. Australia’s vital interests are in regional peace and stability, and a military crisis initiated by Beijing in the Taiwan Strait is the most critical threat to those conditions. It would be the start of a crisis that would consume the region for decades with Taiwanese resistance and leave Australia–China relations unmanageable as Australia wrestled with Beijing’s punitive policies towards Taiwan.

On ANZUS and Australia’s involvement in a US–China conflict over Taiwan, the Biden administration’s policy is clear: to deter Beijing from making a unilateral change to the status quo, with the support of US allies in the region.

Both major political parties in Taiwan reject the ‘one country, two systems’ formula for unification, and the vast majority of the Taiwanese people reject unification under any formula. In any case, ‘one country, two systems’ is not a roadmap to a cross-strait resolution; it is Beijing’s non-negotiable outcome for Taiwan.

Australia, like many countries, has a ‘one China’ policy that doesn’t recognise Taiwan as a state but only acknowledges Beijing’s position on Taiwan’s sovereignty, and certainly does nothing so simplistic as to regard the two as one country.

Although Keating’s views are wrong, they entered like a sugar rush into Australia’s mainstream and social media, and the ecology of establishment, partisan and activist opinion on relations with the US and China and on Australia’s place in the world. In a country that mythologises its prime ministers, his views have been accorded legitimacy and Keating himself performs authoritativeness. It’s notable that he detoured into a discussion of Taiwan’s former president Chen Shui-bian, who was in office from 2000 to 2008. It was a level of detail that might have appeared convincing to a generalist audience of journalists and Twitter activists unfamiliar with Chen’s presidency, but Keating’s comments were actually unintelligible.

Democracies are by definition imperfect instruments and a public discussion that includes the opinion that the security of 24 million people and the democracy they’ve built are not worth affirming in our own democratic national life highlights how a 50-year debate on Australia’s future in the region can loop on itself into an isolationist unwillingness to address the region’s biggest challenges.

At the same time, with much less attention than Keating received, the Department of Foreign Affairs and Trade has begun the Australia–Taiwan Friendship Year to commemorate the 40th anniversary of the establishment of Australia’s representative office in Taiwan, the Australian Office. With the tagline ‘40 years, 40 stories’, the commemorative events emphasise person-to-person links, the Australian community in Taiwan and the Taiwanese community in Australia. These activities highlight how almost completely absent Taiwanese voices are in Australia’s national debate on Australia–China and Australia–Taiwan relations and on Australia’s future in the region. We have a great deal to learn from Taiwan, and if Australia is to find its place in the region, it might be time to listen rather than hold forth.

Evolving Australia–Japan cooperation in dealing with the ‘three Cs’

Amid global uncertainties, strengthening like-minded nations’ bonds to deal with those challenges is vital. In the Indo-Pacific region, cooperation between Australia and Japan has been where the action is. There are three defining challenges—the so-called three Cs—that these key US allies are facing: climate change, China and Covid-19.

In recent decades, the relationship between Australia and Japan has been built on economic ties, but more recently the two countries have been layering cooperation channels to collectively respond to an increasingly Balkanised politico-economic landscape. Importantly, this trend has been fairly linear despite their respective leadership merry-go-rounds over the past decade or so. Why has Australia–Japan cooperation been so critical? And, given Japanese Prime Minister Yoshihide Suga’s abrupt resignation, how can new PM Fumio Kishida drive a joint response to these challenges with Australia?

The first concern is climate change. The decades-long economic partnership in the energy sector is a critical platform of the complementary relationship. Despite the rapidly growing energy demands in the region, Australia has served as the biggest and most stable supplier of energy and key minerals to Japan. Japan is the largest energy export destination from the Northern Territory, with 10% of its imported gas coming from the Port of Darwin.

Both Australia and Japan must now meet a new challenge of a swiftly decarbonising world. While Australia’s latest greenhouse gas emissions marked the lowest level yet, it is still ‘lagging at the back of the pack among developed countries’. Australia has only just joined other nations in pledging to reach net-zero emissions by 2050. Japan did so in October 2020. The two countries’ shifts to carbon neutrality will have stark implications for their trade pattern.

In this context, Japan and Australia are determined to map out how they can collaborate and mutually benefit from the low-carbon energy transition. Under their partnership on decarbonisation through technology, the two countries identified hydrogen and ammonia as potentially large opportunities and led the launch of a regional platform to establish a standard for carbon capture, utilisation and storage technologies.

The second challenge is their complex relationships with China. After surpassing Japan as the world’s second-largest economy in 2010, China has become the world’s dominant trading partner, swiftly taking the top trading position with more than 130 countries. For Australia and Japan, China’s share of their exports is around 40% and 20%, respectively.

While deepening economic interdependence with China has brought economic growth, it has not led to political stability. China’s trade and investment network has intensified interdependence in Asia and beyond, but this has also raised big uncertainties and made geoeconomic tools more influential. Japan struggled with China’s ban on exports of rare-earth elements a decade ago (and settled the case at the World Trade Organization) and, more recently, Australia has been suffering from economic coercion (which it is taking to the WTO) and foreign interference.

Australia and Japan have shown considerable commitment to the WTO-supported international trade regime and the broader post-war global order. The two countries have also worked together to sustain a credible rules-based multilateral trading system and share the view that some reforms to the WTO are necessary to maintain that system.

At the regional level, despite the deteriorating Sino-Australian bilateral relationship, they managed to conclude the Regional Comprehensive Economic Partnership (RCEP) agreement in November 2020, which sets, among other things, new provisions for data governance. Although the significance of those rules is practically limited, it could at least lay the common ground for controlling trans-border data flows. The formation of a digital trade order is an emerging front in standard-setting for cutting-edge technologies, and China’s recent application to join the Digital Economy Partnership Agreement between Singapore, Chile and New Zealand would boost the competition to set rules.

In this context, China’s proposed accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (which Japan salvaged with the help of Australia and other members after the US withdrew under former president Donald Trump) will also be a test case for Australia and Japan in securing a high-standard trading order.

On the security front, tensions are more glaring. Faced with China’s assertive pressure in the region, Japan has called on Australia to help lead resistance both directly and as part of the Quad with the US and India. Australia and Japan have also come to share similar stances and have taken a series of domestic countermeasures under the name of national security.

Both countries have excluded Chinese telecommunication firms from their 5G networks. Japan’s newly enacted land restriction law and Australia’s tightening investment screening are in the same line. Australia’s experience over the NT government’s 99-year lease of the Port of Darwin to a Chinese firm which is now under review provides a useful lesson. While a similar situation is unlikely to happen in Japan, Tokyo can usefully draw upon its lessons.

Last and most importantly, the Covid-19 pandemic has changed the threat landscape across the globe. Australia and Japan have been among the front-runners in managing the health crisis, taking hardline approaches to border control that few other countries have taken. Australia made the most of being an island ‘fortress’ and implemented a series of ad hoc lockdowns, while some crowded parts of Japan were subject to constant strict measures, even during the Tokyo Olympics. Australia is now bracing for the expected rise in cases that reopening its borders to international travellers will bring.

Built on a deep economic relationship, solid people-to-people ties, close political links and a special strategic partnership, Australia and Japan have become mutually indispensable. Despite revolving-door politics in both countries, the relationship will be crucial to maintaining the global rules-based order as it comes under further pressure.

What drove the United States to AUKUS?

September was a dizzying month in Australian foreign policy, especially in the Australian–American relationship. In quick succession were the 70th anniversary of ANZUS, the announcement of the new AUKUS defence partnership, the annual AUSMIN consultations and the Quad’s first in-person leaders’ meeting. The pace was relentless and the consequences breathtaking, with AUKUS the most notable development.

Much Australian commentary has focused on what drove Canberra to join this partnership—the potential risks and benefits, the political dimensions and the challenges. Less discussed are the multiple factors that drove Washington to this decision. None relate to over-the-top claims that it was motivated by a desperate and provocative grasp at preserving its primacy. Understanding the multiple rationales at work is key to determining how important AUKUS is to America, the strength and durability of its commitment, and the likely evolution of this rapidly changing partnership.

AUKUS represents a sea change in US strategic thinking towards empowering its allies, redistributing its forces around the Indo-Pacific, and better integrating its allies into its supply chains and industrial planning to deal with an increasingly aggressive China. This requires sharing sensitive technologies, deepening intelligence cooperation, pooling resources and changing domestic legislation around export controls. It could fundamentally change America’s engagement with the region, its approach to technological acquisition, and its relationship with Australia and other allies.

Given the strategic, bureaucratic and legislative hurdles, this will be no mean feat. So, what explains this shift in Washington’s attitude? Several factors, as it turns out.

President Joe Biden has repeatedly asserted that alliances are America’s greatest asset and pledged that his administration will repair and reinvest in them. This isn’t simply a desire to apply rhetorical balm after four years of disruptions, although that’s undoubtedly at work too. For Biden, as with nearly all his predecessors, this is a matter of security.

‘When we strengthen our alliances,’ Biden told America’s diplomats shortly after becoming president, ‘we amplify our power as well as our ability to disrupt threats before they can reach our shores.’ This straightforward logic has guided American policymakers for decades: there’s safety, and power, in numbers and threats are best confronted as far from the American homeland as possible.

For Washington, AUKUS is a tangible demonstration of its commitment to allies under duress. More significantly, it is a recognition that in a deteriorating security environment with a shifting balance of power, America is prepared to significantly augment close allies’ capabilities and enable them to do more.

Similarly, America needs to address persistent questions about its commitment to, and staying power in, the Indo-Pacific. Foreign observers have obsessed over how inwardly focused America is, where its actual, as opposed to stated, priorities lie, and its ability to defend itself and others from emerging threats.

America’s allies and partners have asked these questions out of a sense of concern; its adversaries out of a sense of opportunity. In recent months, such concerns were heightened in the aftermath of America’s chaotic withdrawal from Afghanistan and growing alarm over Taiwan’s vulnerability. AUKUS will not put an end to those debates, but willingly sharing the crown jewels of America’s technological and military prowess is a big step forward.

Just as significant, AUKUS will help shift America’s strategic focus and lay the foundation for a significantly expanded regional presence. Related to this is the message intended simultaneously for external audiences and domestic ones that the needs of the Indo-Pacific will take priority over other interests and drive bureaucratic choice and resource allocation.

The special regard that Australia is held in, by both American policymakers and the American public, combined with Washington’s desire to do more to help Australia respond to China’s bullying, also helps account for Washington’s willingness to pursue this deal. Australia and America have had a close relationship for decades but, over the past several years, a special interest in, and respect for, Australia’s own policies has grown in the US.

Australia is seen a canary in the coalmine, often the first to experience and be forced to respond to various forms of Chinese coercion and political interference. In Washington, politicians and policymakers now cite Australia as an example of both what Chinese coercion looks like and how to respond. This, and not paeans to the countries’ shared history on battlegrounds, is what is driving Washington’s desire to work more closely with Australia. That sentiment is true at both the elite and popular levels.

Polling reveals that Americans are willing to take significant risks to defend Australia. Biden’s statement that the ‘US has no closer or more reliable ally than Australia’ should be seen as a reflection of these views, and a desire to help turbocharge Australia’s efforts.

Of course, America’s desire to shore up its alliances and display its Indo-Pacific focus goes far beyond its relationship with Australia. But given the amount of trust required to share nuclear secrets and collaborate on cutting-edge technology, AUKUS could only have been undertaken with the closest of allies. As US Secretary of State Antony Blinken declared in May, ‘The US will not leave Australia alone on the field.’ AUKUS should be seen as a significant attempt to make good on that statement.

In strategic terms, AUKUS is largely driven by Washington’s recognition that it needs more capable players in the field (or, rather, in and under the sea) to help correct a shifting balance of power. China’s decades-long economic expansion has allowed its rulers to rapidly modernise its military. Beijing now possesses the world’s second largest defence budget, fields the largest conventional missile force, and controls the biggest navy and coastguard.

While China has poured resources into defence and rapidly grown its forces, the US and its allies and partners have not kept pace. The US still has a military advantage over China, but the gap has been rapidly closing in Asia, and in certain domains it may already have been erased. Without an urgent drive to address such trends, the regional balance of power may soon tip in China’s favour.

Responding to such imbalances requires greater numbers and more advanced capabilities. AUKUS holds out the possibility of fielding more forces and upgrading their capabilities. As China has not yet developed robust anti-submarine capabilities, nuclear-powered submarines can offset Beijing’s advantages—if more Australian, British and American submarines can be put in the water on an accelerated timeline.

A final American motivation is the hope that AUKUS will galvanise greater investments, efforts and collaborations by other nations concerned by the rapid growth of China’s military and its increasingly assertive use. While the sensitivity of the technology being shared and the complexity of the logistical requirements mean AUKUS will remain limited, the idea of nations working together to balance China’s rise is by no means exclusionary. This can already be seen with Japan’s and India’s contributions to the Quad.

Southeast Asia’s initial response to AUKUS has been more varied, but Taiwan, Vietnam, Singapore and the Philippines have all shown a willingness to enhance their defence capacities and augment their security partnerships, even if defence spending across the region remains low.

Europe too has shown interest in increasing its military presence, which makes it even more important to encourage greater regional involvement by France, despite its loss of Australia’s submarine contract. Some of these efforts are more aspirational than others, but the more coordinated efforts take place, the more convincing becomes the argument that Beijing is no longer operating in a permissive security environment.

The desire to empower America’s closest allies; the need to demonstrate the US commitment to, and prioritisation of, the Indo-Pacific region; the respect for and trust of Australia; the drive to balance Beijing with more robust defence capabilities for its allies; and the hope that bold actions will galvanise more nations to act all played a part in Washington’s decision to support AUKUS. Canberra may have initiated this deal with London, but Washington rightly saw the opportunity to advance its own strategic goals.

Australia’s 2020 defence strategic update concluded that the regional security environment was deteriorating more rapidly than earlier assessments indicated, requiring new thinking and new action.

Recognition of an altered landscape and the need to mobilise greater collective efforts can produce radical shifts in what is necessary, and what is possible.

During America’s Civil War, President Abraham Lincoln declared, ‘The dogmas of the quiet past, are inadequate to the stormy present.’ Thus he laid the political, moral and strategic groundwork for the Emancipation Proclamation to formally abolish slavery in America. ‘As our case is new, so we must think anew, and act anew.’ Attempting to motivate his fellow Americans, Lincoln concluded that his nation could succeed only by concert, not with, ‘Can any of us imagine better?’ but with, ‘Can we all do better?’ That simple statement preceded one of the boldest acts of statecraft in American history.

Many questions about AUKUS remain unanswered, and critical ones may not yet have been asked. But Washington and Canberra seem to have made the same bet, that only collective effort, and not individual actions, will produce lasting security and stability.

Explaining Indonesia’s lopsided treatment of its two ‘strategic partners’—Australia and China

Proudly non-aligned, Indonesia never loses an opportunity to reiterate that it has no intention of choosing sides in the Indo-Pacific’s evolving great-power contest.

But that doesn’t mean it always treats both sides equitably.

Take the question of the regional arms race, about which Indonesia’s foreign minister, Retno Marsudi, is evidently ‘deeply concerned’ and of which, it seems, the catalyst was Canberra’s announcement that Australia will acquire eight nuclear-powered submarines through the AUKUS pact with the United Kingdom and the United States over the coming decades.

The Indonesian government revealed its consternation in an official statement. It felt sufficiently disquieted to remind Australia, one of only two countries with which Indonesia has a comprehensive strategic partnership, of its non-proliferation and other international legal obligations and its commitments to preserving peace in line with ASEAN’s Treaty of Amity and Cooperation.

Indonesian legislators were quick to pile on, affirming the argument that Australia’s prospective submarines threatened the neighbourhood’s peace and demanding that Indonesia confront Australia over the issue. Indonesian media commentators also tended to jump on this censorious bandwagon.

The issue has now generated enough political energy to drive Indonesia’s foreign ministry (Kemlu) to consider advocating a change to the Nuclear Non-Proliferation Treaty (NPT) presumably aimed at preventing non-nuclear-weapon states, including Australia, from acquiring nuclear-powered submarines, which the NPT currently doesn’t block.

From Jakarta’s perspective, the problem appears not to be that Canberra is intent on breaching the letter of international arms treaties, but rather that it intends not to ‘abide by the spirit’ of them.

One area of concern is presumably the threat of diversion; that is, that the weapons-grade highly enriched uranium (HEU) used to fuel British, American and other nuclear submarines might end up in a nuclear weapons program.

Few Indonesians seem to believe that Australia would have such nefarious designs. The fear seems to be more that Australia’s acquisition of submarines of this specification would set a precedent that others less deserving of the benefit of such doubt would follow.

Another concern seems to relate to the implications of Australia’s acquisition for such issues as the proposed fissile material cut-off treaty (FMCT) if, as looks most likely, Australia builds submarines powered by HEU from the US’s slowly shrinking stockpile.

The impact of eight submarine reactors on US stocks might not be profound but it wouldn’t be negligible. Unless the US shifts to lowly enriched uranium (LEU)—which, ironically, is what France uses in the submarines of which Australia originally sought to build a conventional version—or to non-weapons-grade LEU+ fuel for its future generations of naval vessels, fuelling even eight new boats would accelerate the need for Washington to produce a new stock of HEU.

Such an outcome would not only fly in the face of Indonesia’s efforts to codify an FMCT. It would run counter to the US’s own stated interest in having such an instrument. Australia, too, has been an active player in negotiations on the FMCT, and officially remains committed to developing a viable regime to ‘reduce the amount of fissile material available for nuclear weapons’.

It would be tempting to dismiss Jakarta’s statement and subsequent comments on at least two grounds.

First, no matter how measured it might be, an official public statement implying that Australia needs to be reminded about keeping true to its non-proliferation obligations is excessive if the only prospective violation is in spirit rather than an actual breach.

Indonesia has rightly criticised Australian politicians for megaphone diplomacy in the past. In this case, Indonesia’s message was hardly blared out, but it was no less a performative gesture directed at a domestic constituency primed to hear its call.

The administration could easily have raised its worries through the closed diplomatic channels it normally insists Australia use when it has concerns with Indonesia. Given that Australia’s non-proliferation credentials are impeccable and that it has worked assiduously and in good faith on arms control instruments for decades, it has surely earned enough credit for Jakarta to have broached the matter in this way and spirit.

The second ground is the lack of evenhandedness.

Jakarta’s preoccupations with Australia’s long-term military aspirations evidently don’t equally extend to the actual behaviour of the other country with which Indonesia has a comprehensive strategic partnership: China.

Any observer scanning the horizon over Jakarta is more likely to spot a Chinese hypersonic missile than a comment from the Indonesian government that such a weapon system might constitute a clear and all too present danger to its hopes that the region won’t be caught up in an arms race.

Jakarta’s official statements (or lack thereof) instead suggest that it sees hypothetical Australian nuclear-powered submarines intended to carry only conventional weapons as somehow posing a more serious risk to regional peace and the international rules-based order than a new class of missile designed to carry a nuclear warhead out of China.

Indonesia could rightly counter that China, as a nuclear-weapon state under the NPT, has a right to arm itself with nuclear weapons—a prerogative that Australia, an NPT signatory in good standing, neither has nor seeks to achieve illicitly.

It could point to the fact that the US is also working on hypersonic missiles and that Australia is a willing partner in that endeavour.

So, Jakarta may justifiably argue, it would be inappropriate for it to ‘note cautiously’ China’s actions or remind it to adhere to its legal obligations, since its actions breach none of them.

But for a country seemingly so worried about Australia’s compliance with the spirit of arms control regimes, its silence on China’s activities in military technology and modernisation hardly suggests consistency.

This is doubly so in view of Indonesia’s criticism of the NPT nuclear-weapon states for failing to abide by their obligations to move towards disarmament, which historically it has articulated on behalf of the non-aligned movement in UN forums such as the Conference on Disarmament.

It would therefore be well aware that China is the only NPT nuclear-weapon state that is increasing its nuclear arsenal, which is surely an actual in-spirit breach, not just a prospective one.

Nothing reflects this distinction better than the reaction of Indonesia’s coordinating minister for maritime affairs and investment, Luhut Pandjaitan, to a contemporaneous issue with Kemlu’s AUKUS statement.

Responding to questions as to why Indonesia hadn’t reacted publicly to China’s apparent hydrographic surveying of the sea floor in Indonesia’s exclusive economic zone near the Natuna Islands, Luhut stated, ‘We don’t feel we have issues with China.’

‘It’s like with your brothers and sisters,’ he said. ‘Sometimes you have problems but don’t make it into a big problem.’

That Luhut considers China’s continuing flagrant violation of Indonesia’s sovereignty as legitimised under the UN Convention on the Law of the Sea (UNCLOS)—another instrument, incidentally, to which Jakarta felt obliged to refer in its statement on Australia’s submarines—so little a problem that it warrants no official public response is noteworthy.

One can only speculate as to why arguably Indonesia’s most powerful person sees things this way.

Indonesia has long repudiated China’s nine-dash-line-based claims in the South China Sea as incongruous with UNCLOS. Spooked by China’s earlier actions near the Natunas, more recently it has cited the 2016 arbitral tribunal’s decision in a note verbale to the UN contradicting China’s claims. It has toiled in ASEAN to resist China’s efforts to bilateralise the South China Sea issue and to promote a just, UNCLOS-based solution.

Moreover, Indonesia’s accelerating efforts to modernise its military, especially its air and sea assets, as well as its defence cooperation with the US, are no less a response to China’s bullying in Indonesia’s northern approaches than Australia’s are.

So, to say that Indonesia hasn’t been balanced in its official response to the most recent Australian and Chinese actions is not to suggest that it has taken an intentional position on China’s side and against the US and its allies.

But by the same token it’s hard to avoid the conclusion that when it comes to comprehensive strategic partners, in Jakarta’s eyes one is more equal than the other; and that, for all the arguments about norms and ‘spirit’, the underlying explanation for the difference is realpolitik.

Jakarta knows it can get away scot-free with casting veiled aspersions about Australia’s behaviour as an international citizen in a way it can’t with its other close strategic partner.

Still, we shouldn’t let these inconsistencies on Jakarta’s part stop us from responding seriously to its concerns, which, while exaggerated and amplified by their transmission, aren’t theoretically invalid.

Indeed, it would be prudent for Canberra to go out of its way to assuage them. It should make a virtue of such a necessity by taking sensible measures (perhaps like those proposed by experts in the field) that would practically reiterate Australia’s commitments to non-proliferation.

And it should do so in as open, cooperative fashion—in the spirit of a close strategic partner.

A 3D deep dive into the India–China border dispute

India–China border tensions have become one of the Indo-Pacific’s defining territorial disputes. The ongoing Ladakh crisis ended more than three decades of confidence-building measures and border agreements in June 2020 with the deaths of Indian and Chinese soldiers. Multiple rounds of tactical and diplomatic talks have resulted in a stalemate between the two Asian powers. Over the past year, there’s been a renewed build-up of military and transport infrastructure along the border as both countries reacted to tensions.

Beijing and New Delhi have attempted to manage escalation through ad hoc disengagement pacts, but heightened mistrust and growing Chinese assertiveness across the Indo-Pacific have cemented the de facto India–China border, known as the Line of Actual Control, as a flashpoint. Earlier this month, reports emerged of a fresh standoff between soldiers along the northeastern border, while the latest round of military talks failed to ease tensions in Ladakh.

The Chinese military’s activity on the contested border has been one of the key drivers behind the shift in the Indian public’s and government’s assessments of India’s relationship with China. The result has been a faster convergence in regional security and strategic policy directions. One obvious manifestation of this is the growing Quad partnership of New Delhi, Tokyo, Canberra and Washington. Events and activities on and around this contested border are important to understand, not only for regional dynamics but also because of the risk of escalation and possibly even wider conflict.

Yet, outside of a small community of defence and security researchers, there’s a lack of public understanding about the unsettled border, including historical areas of contention, strategic considerations and current developments. One key area is the Doklam region—a strategically significant territory cushioned between India, China and Bhutan but claimed by both China and Bhutan. A 2017 stand-off between Indian and Chinese troops there highlighted the ongoing risk of an unsettled border. The 2017 standoff, similar to current tensions, ended after a secretive disengagement agreement was reached.

A new project by ASPI’s International Cyber Policy Centre aims to help bridge this gap by assisting policymakers, practitioners and the public to better understand developments along the India–China border.

We constructed 3D models—stitched together through collection and analysis of new satellite imagery and by using open-source datasets we compiled (including geolocated military and infrastructure positions)—looking at Doklam to help assess current developments.

Our findings are set out in a visual interactive report with a 3D satellite model and a 3D topographic model. These models are overlaid with our new datasets to help explain key points of tension in Doklam.

We searched satellite imagery from 2017 to 2021 for areas of human influence and likely military positions and infrastructure, which we then marked and annotated. Archived imagery dating back to 2005 was used to establish what developments had occurred and when.

We found that India and China have both continued building military infrastructure along the border, including new frontline observation towers and forward troop bases. China accelerated construction following the 2017 stand-off, and road construction continued through late 2020 and early 2021.

In Doklam, despite the 2017 disengagement agreement, China has exploited its de facto control of Bhutanese territory, allowing its military to continue building strategic road infrastructure, including a strategic ‘rear road’, towards Indian territory. There was significant construction in 2018 and 2019, following the stand-off.

India’s historical positions along the borderlands in the Doklam region have enabled it to maintain a surveillance advantage throughout the area from frontline locations abutting the border. However, China has consolidated its position across Doklam over the past 20 years, largely building in areas hidden by terrain from Indian positions. Some of this construction has accelerated since 2017.

Approximately 50 square kilometres of internationally recognised Bhutanese territory is now under the de facto control of Beijing. The Chinese military continues to construct military positions and infrastructure in this area.

The result is a crowded border with built-up infrastructure and thousands of Indian and Chinese posts competing for strategic territorial advantage. This increases the risk of escalation and military conflict.

The disputed Doklam Plateau reflects many of the shortcomings of tactical disengagement agreements across the Line of Actual Control. While those agreements are helpful steps in reducing the likelihood of immediate conflict, they don’t address the strategic drivers of tension along the border, and several risk factors for future conflict remain. They include the physical proximity of Indian and Chinese forces, the differing perceptions of where the border lies and China’s growing assertiveness in the Indo-Pacific region.

Those risk factors should be mapped in detail, and both sides must make meaningful concessions if they want to lessen the likelihood of conflict. If China continues to seek to change the status quo, the escalatory risks will grow.

Learning to manage the China threat

When US President Bill Clinton backed China’s accession to the World Trade Organization, he suggested that the move would spark profound changes ‘from the inside out’. By joining the WTO, China would not simply be agreeing to import more American products; it would be ‘agreeing to import one of democracy’s most cherished values, economic freedom’. And ‘the more China liberalizes its economy,’ Clinton predicted, ‘the more fully it will liberate the potential of its people.’

Reality has turned out to be far more complicated.

The notion that free trade leads inexorably to democracy didn’t begin with Clinton. His predecessor, George H.W. Bush, operated under the same assumption: ‘No nation on Earth has discovered a way to import the world’s goods and services while stopping foreign ideas at the border.’

Two decades after China’s WTO accession in 2001, its economy has reached the expected milestones. But it is nowhere near becoming a democracy, and American leaders have not only lost confidence in the presumed relationship between economic and political freedom, but now fear that Western democracy is vulnerable to Chinese influence.

As US Secretary of State Mike Pompeo warned last year, the free world should ‘change China, or China will change us’. Likewise, following last summer’s G7 summit, US President Joe Biden defined the struggle between Western democracies, led by the US, and China as ‘a contest with autocratic governments around the world’. In an echo of Cold War logic, the assumption now seems to be that there’s room for only one political system in town.

To some extent, China seems to subscribe to a similar worldview. It sees Western efforts to uphold human rights as a direct threat to its domestic political stability. China’s national sovereignty and ‘national dignity’ come first.

In any case, the US should be careful what it wishes for. China is a global power, with an economy that has fuelled growth and prosperity worldwide. If it were to experience a profound political transformation, the process might not be particularly peaceful, in which case the consequences would reverberate globally.

Of course, such a transformation will never come if the Chinese Communist Party can help it. The CCP has obliterated all such efforts, including the New Citizens’ Movement, headed by figures like the late intellectual Liu Xiaobo, who won the Nobel Peace Prize while in prison for promoting a pro-democracy charter. In 1989, Liu famously kept vigil to protect protesters at Tiananmen Square from another CCP action aimed at crushing a pro-democracy movement.

As uncomfortable as it may be for Westerners to admit, the CCP has successfully led China through one crisis after another: the 2002–03 SARS epidemic, the 2008 global financial meltdown and the Covid-19 pandemic. Of course, other Asian states that are not authoritarian also managed these crises well. Still, given China’s size and economic weight, these episodes could have been far more destabilising than they were.

This is not to say that no changes to China’s political system would be positive. Nor is it to suggest that the CCP will always manage to prevent change, or manage a crisis well (as its mishandling of the start of the Covid-19 pandemic suggests). Still, political systems are inherently dynamic and open to evolution. China’s economic success—which belies Max Weber’s assessment that Confucian cultures were incompatible with capitalism—is proof of that.

So far, the CPC has managed to build a version of capitalism that aligns with—and advances—its priorities, including the persistence of its political monopoly. Economic growth and development have given the one-party regime what the late political scientist Samuel Huntington called ‘performance legitimacy’. But this could turn out to be the CCP’s downfall, if China faces a sharp enough economic slump.

Even continued economic success could prove problematic for the CCP. Clinton and Bush were not totally off base in their belief that economic liberalisation can weaken a dictatorship: that’s what happened to Francisco Franco’s regime in Spain. Increased prosperity and exposure to the outside world can breed resentment in authoritarian countries.

That is why the CCP continues to resist full liberalisation and protect the state sector, despite high costs. It’s also a major reason why the party has ramped up its investment in internal security, with annual spending more than tripling since 2007. In 2017, China’s spending on internal security stood at ¥1.24 trillion (US$196 billion), higher by about ¥20 billion than its spending on military defence.

All this investment makes a revolution highly unlikely. Even dictatorships without such resources—think of Cuba or Iran—have often proved highly resilient. And even if, say, an internal coup occurred in China, there’s little reason to think that it would bring anything close to Western-style democracy.

Russia didn’t become such a democracy after the collapse of the Soviet Union; on the contrary, President Vladimir Putin’s tenure has proven that authoritarian forces can easily survive ‘democratic transitions’. Russia’s experience (and enduring imperial ambitions) also puts the lie to the notion that regime change would spur China to stop challenging the US and its allies.

That challenge must be taken seriously. By advancing his imperial designs in East Asia, Chinese President Xi Jinping has virtually abandoned China’s long-touted promise of a ‘peaceful rise’. He has also established a personality-driven neo-Maoist dictatorship. Attempts to force Xi’s regime to fulfill its human rights obligations could probably spur even more dangerous antagonism.

What the US doesn’t do to mitigate the security threat posed by China is as important as what it does. The Biden administration should continue building on recent progress in creating collective security arrangements, such as the AUKUS pact with the United Kingdom and Australia and the so-called Quad with Australia, India and Japan. What it should not do is perpetuate a Cold War–style zero-sum game aimed at forcing regime change in China.

ASPI’s decades: China’s cyberpower

ASPI celebrates its 20th anniversary this year. This series looks at ASPI’s work since its creation in August 2001.

The list of 14 grievances issued last year by China’s embassy in Canberra had one point aimed at ASPI.

Among the sins of the Australian government, in the eyes of China, was to fund an ‘anti-China think tank for spreading untrue reports, peddling lies around Xinjiang and so-called China infiltration aimed at manipulating public opinion against China’.

The aggrieved and annoyed tone was also an acknowledgement: the institute’s research was having an impact. Beijing’s growing cyberpower had made China a natural focus for the work of ASPI’s International Cyber Policy Centre.

As ICPC’s director Fergus Hanson noted in March 2020: ‘The simple act of looking at what the Chinese government says it wants to do and is doing has produced some remarkable empirical research and insights into the type of state that Australia, and the world, is dealing with.’

Chinese anger at what’s been revealed produced unusual pushback, smear campaigns and cyber-enabled interference targeting ASPI and individual staff members. Tackling state-backed information operations and disinformation can also make you a target.

In Enter the cyber dragon in 2013, Tobias Feakin wrote about the cyber capabilities of Chinese intelligence agencies and their ‘industrial scale’ operations.

While Chinese agencies were collecting vast quantities of data, Feakin said, ‘what happens to it once it’s collected is relatively unknown. We’re not certain how the data is processed and analysed, and whether it ever becomes a fully usable intelligence product that’s of value to Chinese policymakers’.

A deeper understanding of what China was doing in the cyber realm, Feakin wrote, would shape Australia’s own policy settings.

A 2014 report on China’s cyberpower by James Lewis dismissed claims that China was waging an economic war in cyberspace. China’s behaviour, he wrote, had more to do with commercial interests than geopolitical strategy:

China’s cyber doctrine has three elements: control of networks and data to preserve political stability, espionage to build China’s economy and technological capabilities, and disruptive acts aimed at damaging an opponent’s military command and control and weapons systems, all of which are dependent on software and networks.

ASPI staff and contributors to The Strategist debated whether the Chinese telecommunications company Huawei should be allowed a role in Australia’s 5G network, tackling the broad Australia–China relationship, other states’ experience with Huawei, the Chinese government’s approach to cyber espionage and intellectual property theft, and the Chinese Communist Party’s view of state security and intelligence work.

In August 2018, the government banned China’s Huawei and ZTE, stating that ‘the involvement of vendors who are likely to be subject to extrajudicial directions from a foreign government that conflict with Australian law, may risk failure by the carrier to adequately protect a 5G network from unauthorised access or interference’.

It was a key moment in the dawning of an icy era in Australia’s relations with China.

The anger that China directed against ASPI was based on the detailed work of the cyber centre and the facts it revealed about Chinese policy and behaviour:

  • China’s censorship of the micro-blogging service Weibo
  • deterrence in cyberspace
  • China’s ‘social credit system’—the use of big-data collection and analysis to monitor, shape and rate behaviour via economic and social processes
  • the ‘dual-use’ dilemma in artificial intelligence: China’s demonstrated capacity and intent ‘to co-opt private tech companies and academic research’ for defence objectives in ways that were far from transparent
  • big data and the battle for privacy: ‘If data is the new oil, China is oil super-rich’
  • how China steals Western intellectual property, examining the experience of Australia, the US and Germany
  • online influence and hostile narratives in East Asia, using the examples of Taiwan, the Hong Kong protest movement, West Papua and the Philippines
  • the People’s Liberation Army’s sponsorship of more than 2,500 scientists and engineers to study abroad, working with researchers and institutions across the globe, particularly in the Five Eyes countries
  • cyber-enabled covert foreign interference in 97 national elections between 2016 and 2019, which was overwhelmingly attributed to Russia or China
  • the need for the West to have a technology strategy: ‘China is not an enemy. They aren’t an adversary. They’re a competitor, and we need to ask ourselves, How do we compete with them?
  • a new Sino-Russian high-tech partnership, adapting to an era of great-power rivalry
  • China’s tech-enhanced authoritarianism expanding globally, creating a massive data-collection ecosystem (facial recognition, bulk data collection, tools for smart cities and artificial intelligence) as tools for shaping global governance
  • dealing with a more confrontational China and the risk that commentary on China’s influence and interference operations could affect Chinese-Australian communities adversely
  • Chinese government–linked information operations against the Hong Kong protests, using Western social media platforms
  • China’s use of talent-recruitment programs to gain technology from abroad through illegal or non-transparent means, drawing in almost 60,000 overseas professionals between 2008 and 2016
  • a persistent, large-scale influence campaign linked to Chinese state actors on Twitter and Facebook
  • foreign interference and the CCP’s united front system: co-opting representatives of ethnic minority groups, religious movements, and business, science and political groups, which the party claimed to speak on behalf of and used to claim legitimacy
  • the Chinese ‘super-app’ WeChat, which had approximately 1.2 billion monthly users worldwide, including 100 million outside China, and extended China’s ‘techno-authoritarian reach into the lives of its citizens and non-citizens in the diaspora’ through ‘surveillance, censorship and propaganda’
  • China’s coercive diplomacy against foreign governments and companies, recording 152 cases of coercive diplomacy affecting 27 countries and the European Union over 10 years and a sharp escalation in these tactics from 2018
  • China’s central bank digital currency, which, if successful, could ‘create the world’s largest centralised repository of financial transactions data and … unprecedented opportunities for surveillance’
  • the fundamental changes Australia’s Chinese-language media landscape had undergone over two decades, at a cost to quality, freedom of speech, privacy and community representation. CCP influence ‘targets individual outlets while also manipulating market incentives through advertising, coercion and WeChat’.

In 2020, Hanson responded to criticism that ASPI’s research on China was ‘one-sided’ and ‘dystopian’. He noted that Australia had put lots of effort into understanding China’s economy, but other critical areas were ignored, such as technology transfer programs, united front activities, military modernisation and interference in diaspora communities:

ASPI has one of the largest concentrations of Chinese-language speakers in any think tank in the country. Their specialisations include China’s military, technology transfer, online censorship, smart cities, social credit and industrial espionage. Our China research runs across different thematic programs and, while it attracts attention, is still only a modest part of ASPI’s total research output.

Hanson said ASPI didn’t have an editorial line on China, but it did follow a very clear research method: original empirical work that, wherever possible, generated new data. Researchers had to trawl through masses of information in multiple languages over months and sometimes years in order to create new datasets:

This focus on empirical research is grounded in the idea that analysis informed by the hard work of empirical research is the most valuable contribution we can make to the policy debate. People don’t have to agree with our analysis, but it at least provides a factual basis for a debate.

Drawn from the book on the institute’s first 20 years: An informed and independent voice: ASPI, 2001–2021.

China military watch

The careful selection by Chinese leader Xi Jinping of military officers for rapid promotion to key positions in the People’s Liberation Army may signal both a wish to consolidate the military behind him and a concern about emerging security challenges in China’s far western regions.

While the global focus in recent weeks has been on the US withdrawal from Afghanistan and then the announcement of the AUKUS pact, the PLA’s personnel dynamics are an important indicator of China’s geostrategic priorities and Xi’s political status that should not be ignored.

As chairman of the Central Military Commission, Xi has aimed to build what he’s called a ‘patron–client relationship’ by rapidly promoting young generals and putting them in important positions to win their loyalty, which can further strengthen his control of the military.

In July, Xi promoted four senior officers to general, the highest rank for officers in active service. It’s notable that Southern Theatre commander Wang Xiubin, Western Theatre commander Xu Qiling, Army commander Liu Zhenli and Strategic Support Force commander Ju Qiansheng are all from the army.

In September, Xi promoted five more generals, Western Theatre commander Wang Haijiang, Central Theatre commander Lin Xiangyang, PLA Navy commander Dong Jun, PLA Air Force commander Chang Dingqiu and National Defence University president Xu Xueqiang.

Despite the common view that China’s navy is the primary service being modernised, the Eastern and Southern Theatre Commands are the PLA’s strategic focus, and most of the recently promoted generals are from the army. Since 2016, when Xi began reforming the military, he has promoted 39 generals, 20 from the army, 10 from the air force, and only four from the navy.

There may be more vacancies in the army and air force because they assist other services such as the People’s Armed Police (PAP) and the Strategic Support Force (PLASSF). Most PAP generals come from the army, and PLASSF generals tend to have an air force background (see figure 1).

Figure 1: PLA promotions to general by service, 2016 to 2021

Generals from China’s western regions have been the most likely to be promoted. Since 2016, Xi has promoted 15 theatre commanders and theatre political commissars. Five generals were from the Western Command, three were from each of the Southern and Central Commands, and two were from the Eastern and Northern Commands (see figure 2).

Figure 2: PLA promotions to general by theatre command, 2016 to 2021

Six of the nine generals promoted in July and September rose from the rank of lieutenant general within two years. Seven were born after 1962, so they’ll be under 60 in 2022 after the Chinese Communist Party’s 20th national congress.

The selection of these officers is relevant to the military and regional security but also to the party.

The army still plays an important part in military modernisation due to its external strategic focus, its role in maintaining internal stability, and historical factors.

With its vast land borders, China has faced more disputes and threats on its northwestern frontier than from its southeastern maritime approaches since the imperial period.

These geostrategic and historical factors led imperial China to emphasise defending its western regions, and the PLA has had a traditional focus on land defence rather than coastal defence. Even as China has gradually expanded its maritime activities beyond the so-called first island chain, it still sees ensuring internal stability as a priority to keep the CCP in power.

Since the armed police were moved fully under the Central Military Commission’s control in 2018, there’s been deeper cooperation between the PLA and the PAP aimed at ensuring internal stability. This underscores the army’s importance in land defence during wartime and in strengthening the PAP in times of peace.

China’s Southern Theatre Command faces the possibility of disputes and conflict with regional countries in the South China Sea, but the Western Command is responsible for dealing with any possible external threat, such as from India, and internal instability in regions such as Xinjiang and Tibet.

That both Western Theatre commanders and political commissars are being selected for promotion suggests Beijing is focusing on emerging security challenges in its far western regions.

Media reporting notes that General Li Fengbiao is political commissar of the Western Command. That places a general in an important party position and strengthens the political commissar’s influence in the command.

For the CCP, ‘Political power grows out of the barrel of a gun’ (槍桿子出政權) is the iron rule left by Mao Zedong, and ‘The party commands the gun’ (黨指揮槍) has become a benchmark since then. Although Xi has successfully removed the previous power structure by cleaning up the ‘four big tigers’ with his military reforms, controlling the military is still the most important issue for him to ensure his political status in his third term.

If Xi can continue to dish out rapid promotions to generals he selects, beyond the PLA’s practice, that can help keep his political power and status relatively stable.

These developments, especially Xi’s focus on the Western Theatre Command, may mean he is placing a greater emphasis on meeting internal security threats than on any external conflict.

But Xi has pledged to resolve the Taiwan issue in his term as leader. If the instability in western China continues or escalates, he may respond to a more contested security outlook in East Asia by promoting rising nationalism to ease domestic pressure.

On the other hand, if China stabilises both relations with the West and the situation in Central Asia, Xi may be confident that he can fully focus on unifying Taiwan by 2027, which is the PLA’s 100th anniversary and the year of the 21st party congress.

How to respond to China’s bid to join the CPTPP

Overshadowed by the excitement around AUKUS was a perhaps more significant development in strategic relations that came just the next day: China formally applied to become a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP.

Countries should always remain open to establishing collegial relations. In June 2020, Chinese Premier Li Keqiang declared that Beijing had a ‘positive and open attitude’ towards joining the CPTPP, but whether China’s application is serious or is intended as a ploy, either to show up the US or to block Taiwan’s own bid, it should be considered seriously by all CPTPP members and must not be dismissed out of hand. However, neither Taiwan’s nor any other country’s application should be delayed pending progress elsewhere.

In deciding to commence the accession process for the United Kingdom, the CPTPP Commission took note of Britain’s ‘history as a supporter of the rules-based trading system, its experience with high-standard trade and investment rules’ and its ‘affirmation of its intention to comply with the obligations of the CPTPP’.

China’s history is not supportive of the rules-based trading system and Beijing’s common practice is to disregard its previously made commitments. Despite the commitments China made when it joined the World Trade Organization, state control has spread into almost every corner of the Chinese economy and beyond.

China has also demonstrated a disregard for commitments it has made to others, including by treaty and including to CPTPP members. It would be folly to ignore the evidence of China’s approach to commitments it has made around the world. CPTPP members should not walk into the same trap twice. Instead, they should require much more than just an affirmation of intent from China before accepting reciprocal obligations.

In 2020, China launched a unilateral and politically motivated trade assault against Australia, a CPTPP member. Despite the China–Australia Free Trade Agreement, China’s government has refused any effort to resolve the dispute through direct communication with the Australian government at the ministerial level for 18 months. This strong record of disregard for resolving trade disputes must be considered in assessing the authenticity of China’s affirmations of its intention to comply with CPTPP obligations.

Similarly, China has repeatedly declared that its ratified treaty, the Sino-British Joint Declaration on Hong Kong, is irrelevant. It has utterly disregarded its commitments under the treaty and regularly threatens those who suggest that it should comply with its treaty obligations.

China also disregards its obligations under the United Nations Universal Declaration of Human Rights and similarly threatens those who suggest it should comply with those obligations.

China has demonstrated a willingness to use the limits on enforcement powers under its trade agreements to create asymmetric power relationships. For instance, in breach of ChAFTA, it used unofficial instructions to halt imports of Australian coal to punish the Australian government for seeking an inquiry into the origins of the Covid-19 pandemic.

Australia complained to the WTO over several other trade sanctions, but the process requires an extended investigation period which may only result in Australia being permitted to retaliate by imposing similar restrictions. The system is premised upon the assumption that members intend to comply and that defecting is an aberration. There is no basis for believing that assumption applies to China.

The CPTPP is largely an agreement to treat companies equally, regardless of the country they come from. Importantly, it is intended to be a ‘high quality’ agreement. So, for instance, while Article 2.4 focuses on the elimination of customs duties, China has recently demonstrated a willingness to use informal trade restrictions, such as unofficial instructions to simply not process goods coming from Australia. Such moves would certainly be against the spirit of the CPTPP.

How, then, should CPTPP members respond to China’s formal application to join the group?

CPTPP members should consider their positions very carefully and not rush their response. They should invite Chinese representatives to testify in support of the application, but they should also invite those with experience of China’s history of compliance with obligations arising from treaties and other agreements to give evidence. Consideration should be given as to how any assurances from China that it will comply with CPTPP obligations could be relied upon.

Members should be confident that any agreement with China is consistent with the spirit of the CPTPP. There is little point in an agreement that, through country-specific exemptions, fails to bring about the fair, rules-based trading regime envisioned.

Members should seek to resolve these issues by opening an extended consultation process with China and its trading partners examining how China will rebuild the trust required to commence the formal accession process. Members should feel no pressure to rush this process. The CPTPP instructs members to respond in a ‘reasonable amount of time’. In this case, a reasonable amount of time should be proportional to progress and China’s effort.

Trust should not be conferred in a single discrete moment but sustained in a continuous process. Having so thoroughly abused trust in the recent past, China needs a path back. That relies on extensive and ongoing transparency, confirmation and accountability.

Because of the depth of China’s breach of confidence, such a mechanism should not end once the formal accession process begins, or even upon China becoming a member of the CPTPP. Special provisions should apply that require heightened transparency and compliance verifications, and a more rapid and compelling mechanism to ensure that compliance.

In light of China’s hostage diplomacy, CPTPP members should be careful to ensure that there is no suggestion that its recent abusive actions can be valued as bargaining chips to trade away. Ceasing those actions cannot buy goodwill. China is already obliged not to engage in hostage diplomacy and ending such practices should be a non-negotiable pre-condition before any formal accession process can begin.

CPTPP members should insist on these extraordinary processes because China’s actions have been extraordinary. Ensuring China complies with high-quality fair-trade rules was, after all, a major part of the point of the CPTPP. Allowing China to join the CPTPP and enjoy all the benefits of membership while continuing to ignore its obligations would be a historic mistake.