Tag Archive for: China

The West needs a post-5G technology strategy 

When I left government in 2018 one of my key concerns was that I didn’t think we fully understood the implications of technology for national security.

Technology is going to be a core aspect of the future and it’s not just cyber technology. It’s going to be technology writ large. I believe that we can assimilate this. Game-changing technologies with social implications have been a part of human history during our entire existence as a species.

We tend to think that the time we’re living in is fundamentally different or somehow the toughest. It’s not. There have been game-changing technologies with potential negative second- and third-order effects throughout the history of humanity. We’ve dealt with this before. I believe we can deal with it now. But we’ve got to be willing to sit down and think about it. And we really need to ask ourselves what’s the way forward.

What’s the right answer for the implementation of a technology that will be a fundamental building block for a nation’s economic competitiveness in this digital world that we’re living in?

5G is emblematic of this, because 5G is not just about, ‘I’m going to get a better phone service.’ That’s not the heart of it. 5G is going to enable us to radically address latency issues. We’re going to be able to move massive amounts of data at incredible, stable rates that will give our handheld digital devices the kind of capability and functionality that we take for granted today in our laptops and in our mainframes.

5G is going to underpin all of that, and it’s only one of many foundational technologies that are being developed right now. As I used to say about 5G in our system, ‘Hey, it’s just the wolf closest to the sled.’ It’s emblematic of a broader set of challenges that we’re going to have to deal with over time.

The dynamics we’re seeing now with 5G are prompting the question of how that strategy works when the competition isn’t a single foreign company. The competition now is an integrated national strategy in which that foreign company is just one component. How does a single private company compete against the integrated efforts and resources of an entire nation-state?

A series of technological changes are on the way. They’re going to be so foundational that if we don’t change the dynamic, we’re going to have this conversation over and over again. It’s not about stopping any particular nation or contesting a particular company. This is about ensuring our own and our partners’ competitive ability in the 21st-century digital age. Because, again, you’re going to have to deal with this with other countries and other companies over time. Right now, that happens to be China, Huawei and 5G, but it’ll be something different in the future.

I think the goal is to make sure that the playing field is level. Once we have a level playing field, then it’s up to our private sector. But the challenge right now is that the playing field isn’t level, and it’s really difficult for the West’s firms to compete. And I just don’t think it’s realistic to expect them to do this on their own. Levelling the playing field is going to take work. It’s also about ensuring agreements are adhered to and that there are consequences for clear breaches.

In my new report for ASPI’s International Cyber Policy Centre I offer up a five-point strategy for western policymakers to prepare for the next wave of disruptive technologies after 5G:

  • See technology as a capability, not a product
  • Rethink technological competition
  • Develop a strategy
  • Strengthen our alliances
  • Communicate with broader audiences about cyber strategy

We have to be asking ourselves how we need to change our model, because if we think it’s bad now with 5G, I would argue it’ll be worse when 6G comes along in about three years. And it’ll be worse still with artificial intelligence, quantum computing and other new technologies coming down the pipeline right now.

The unwinnable contest for Himalayan water resources

For millions of years, monsoonal winds have cycled between Asia’s tropical seas and the Tibetan Plateau, delivering snow to its high-altitude mountains and rains to the plains below them. The melting snow and summer rains combine to create a system of rivers that fan out from the mountains, delivering water and fertile soil to East, Southeast and South Asia.

Known as the Great Himalayan Watershed (GHW), this hydrological phenomenon has created richly diverse ecosystems and the right conditions for some of the world’s earliest agricultural and urban centres. The GHW encompasses most of Asia’s rivers—today around 45% of the world’s population depends on the watershed and it is home to many significant manufacturing centres and trade networks. Despite this, the GHW has received little public or political attention.

Increasing attention is now being paid to the watershed’s degraded state. Scientists, environmentalists and locals are particularly concerned about its glaciated headwaters and its deltas. Both are experiencing accelerated climate change and biodiversity loss.

The best-case scenario for the GHW would be a pervasive management plan, focused on its interconnected headwaters and threatened deltas. But the complex mix of the ‘geo’ and ‘political’ within the GHW makes a management solution unlikely.

China controls the uppermost reaches of all these rivers, but only the Yellow and Yangtze Rivers flow within its boundaries. Even then, their upper reaches lie in Tibetan ethnic regions—environments foreign to most Chinese citizens. The Mekong, Salween, Brahmaputra, Ganges and Indus Rivers are transboundary river systems and most of them transverse more than two countries.

In the GHW’s southeast, intergovernmental organisations have only made tentative steps towards the transnational management of the Mekong. On its southern side, cooperation is proving even more elusive. The Indus, Brahmaputra and many of the Ganges’ tributaries flow through areas contested by China, India, Bhutan, Nepal and Pakistan. These river systems are not only un-managed, but a heavy military presence within them is also further straining their fragile ecologies.

All Himalayan nation-states are now concerned about water security, but their competitive efforts to secure the GHW’s water are depleting rather than reviving its rivers.

Border standoffs are at least partially a result of the region’s topographical imbalance. China’s control of the rivers’ sources is a powerful strategic advantage that feeds paranoia in downstream countries. New development and technologies have allowed China to increase its presence on the plateau, and it has also demonstrated a willingness to manipulate the region’s water flows and water flow data.

After the Doklam standoff between India, Bhutan and China in 2017, China refused to adhere to its data sharing agreement with India on flow levels. India depends on this data to prepare for monsoon floods—a lack of information about river flows puts lives at risk. While the Indian government’s reaction was mute, perhaps given its ability to monitor the river through military satellites, the media stoked local fears. Many people living along India’s north-eastern rivers now fear that China will use flash floods or even river-delivered poison against them.

The rivers are being mined for gold and other metals, sand and boutique water, and are being dammed for large hydropower projects. The size of these hydropower projects reveals their builders’ state-making intent; large projects allow governments to solidify their control in ethnic minority regions, make ‘first use’ water usage claims against international competitors and connect the periphery to the centre through the electricity grid.

One country’s hydropower projects would put environmental strains on this river system. Mirrored projects on either side of international borders are a result of intensifying competition for resources between statesOn the upper Indus River, for example, China, India and Pakistan have all built hydropower dams within a few hundred kilometres of each other. One well-managed hydro project could have provided enough energy for the entire region.

Like many other minoritised areas, the Himalayas’ resources are being extracted for the benefit of urban majorities. Any local resistance to the hydropower projects has been curtailed by heavy state presences across the Himalayas.

China, India and Pakistan have approached the mountains as distant, impenetrable and effectively empty. India and China took effective control of the region in the 1960s, marginalised its peoples and dissected their homelands with international borders.

Despite promoting themselves as the world’s premier post-colonial states, they have behaved like colonists in these mountains by importing lowland populations and armies and extracting their resources.

The rivers that flow from the Himalayan icepack are notorious border flouters and continuously work to erode state infrastructure. The states’ intensely nationalistic approach to these rivers is not only environmentally disastrous but also fundamentally impractical.

The environmental strains that militarisation and resource extraction place on the region will eventually force change. The degradation of the upper GHW will make it unliveable for soldiers and locals. Intensifying upstream decline will impact the billions of people who live downstream.

The GHW needs an international management council that would balance the needs of its fragile glacial heights, large downstream populations and biodiverse deltas.

It would need to combine icepack and river management. The ‘third pole’ could be managed by an organisation like the Arctic Council, which operates between the governments and indigenous peoples of the Arctic. This body could then liaise with a series of river management authorities that could be modelled on the existing Mekong River Commission.

But what would it take to create such a council? Forward thinking or a catastrophe?

Why strategic competition between the US and China is good for Australia

US strategic competition with China has triggered considerable debate about the implications for Australia. Thus far, commentators have judged US President Donald Trump’s approach towards China and the Indo-Pacific mostly negatively. Some analysts have feared a general decline of US leadership and willingness to defend its allies against potentially hostile Asian powers like China. They have called for a ‘radical rethink’ of Australia’s defence policy and the need to prepare for a ‘post-US’ regional order.

For some, Australia should adopt a strategy of ‘armed neutrality’ to deal with an emerging China-dominated region and a US unwilling to defend its allies. Since Australia will soon be ‘without America’, it must develop a truly self-reliant defence policy.

For others, Trump’s ‘pushback’ against China is seen as economically damaging for Australia or, worse, risks dragging Canberra into unwanted US-led wars in Asia. They have also criticised Trump’s China policy as a move towards ‘containment’ and a ‘new Cold War’, and thus incompatible with Australian interests. Some have even proposed getting closer to Beijing because uncertain US strategy towards China ‘will invite hostility from our most important trading partner’.

In contrast, I argue in the Australian Journal of International Affairs that the new era of US–China strategic competition is positive for Australia, and that calls for a major shift in Australia’s security alignment and defence posture are unwarranted. Claims that the Trump presidency means America will cut strategic engagement in the Indo-Pacific and abandon its Australian ally stand on very shaky ground.

The evidence strongly suggests that the US under Trump has not abandoned its long-standing tradition of resisting any major challenger to its Pacific interests. Using a hybrid strategy mix of ‘collective balancing’ and ‘comprehensive pressure’, the Trump administration has pushed back against China in the normative, economic, technological and military domains.

The implementation of the pushback has not been without flaws. For instance, while the US government has emphasised the ideological component of US–China competition, the messaging has been far from persuasive. In particular, recent suggestions by a senior US State Department official about a ‘clash of civilisations’ were unhelpful and rightly rejected by the Australian government.

Moreover, as Hal Brands points out, Trump’s unilateral tendencies risk leading the US onto a path towards becoming an ‘unexceptional superpower’. As well, Trump’s trade war against China and its potential negative fallout for the Australian economy are of concern in Canberra. Finally, effective US competition with China depends on closer cooperation with allies. But Trump’s personal treatment of close allies such as Japan and South Korea often complicates such efforts.

Still, these risks are outweighed by the benefits. For Australia, the prevention of a Sino-centric regional order and continued US leadership in the Indo-Pacific remain key strategic interests. Before Trump took office, many in the Australian strategic community criticised his predecessor Barack Obama for failing to employ a tougher response against China’s assertiveness. Washington has now shifted gears towards comprehensive strategic competition with China, so some degree of disruption is inevitable. Still, there is no evidence of US containment policies against China and concerns about a ‘new Cold War’ in Asia are unwarranted. Likewise, there is no evidence that the administration is accommodating China or looking for a ‘great bargain’ with Beijing.

Instead, I agree with Peter Jennings that the administration’s recent ‘Indo-Pacific strategy’ and other policy documents provide a good framework for the US and like-minded allies such as Australia to increase cooperation in working towards maintaining key elements of a stable, rules-based Indo-Pacific order. In fact, there are no indicators that the ANZUS alliance is in trouble as a result of Trump.

On the contrary, the November 2018 announcement of US cooperation with Australia and Papua New Guinea in the modernisation of the Lombrum naval base on Manus Island can be seen as a mutual pushback against China’s ambitions in the South Pacific. Similarly, the continued build-up of US Marine rotational deployments through Darwin and the first-ever written US nuclear extended guarantee to Australia demonstrate a strengthening of America’s defence commitment, rather than a weakening. So do reports about the prospect of a new port outside Darwin to facilitate greater Australia–US military cooperation.

Moreover, the bipartisan consensus in Washington about a stronger line against China provides a level of consistency and predictability of US strategic engagement in the region beyond Trump. Indeed, the obsession with the president himself overlooks the key roles of the Congress, as well as the foreign and security bureaucracies in underwriting a sustained pushback against China. They also form an important brake on some of Trump’s counterproductive impulses in dealing with allies and partners.

The shift in US China strategy broadly aligns with Australia’s own re-evaluation of its relationship with Beijing. Australia’s ‘reset’ or ‘reality check’ in its relations with China was well underway before Trump took office. The government shares assessments that China has become more authoritarian and won’t liberalise, that it aims to undermine the regional security order and that its influence operations in Australia pose a significant challenge.

A bipartisan consensus has also emerged in Canberra about the need to push back against some elements of Chinese behaviour. This is evident, for instance, in Australia’s leadership on new foreign influence and interference laws, and in persuading its US ally to follow its example in banning Huawei from its 5G network over security concerns.

While the Trump administration’s new course on China creates some uncertainty, Australia should welcome a long-overdue correction of US policy. Consequently, a major realignment of Australia’s security and defence policy isn’t required. Indeed, those frequently claiming US abandonment of the Indo-Pacific region and its allies fail to provide substantial evidence for those claims. And greater strategic competition between the US and China makes such a scenario even less likely.

Australia must do more than flag-wave in the South China Sea

There’s a credibility problem in the South China Sea. When ASEAN states consider China’s commitment to dominating maritime Southeast Asia, its capability and the risks it’s willing to take, they undoubtedly come up with a pretty clear-eyed assessment. It’s knowledge won through painful experience.

ASEAN states also know that opposing Beijing too strongly will bring punishment, while conformity can bring rewards. And they have a good deal of certainty that China’s strategic intent won’t be changing anytime soon.

They don’t, however, share similar confidence in America’s commitment to upholding a ‘free and open Indo-Pacific’. The failure of the pivot to Asia, the derailment of the Trans-Pacific Partnership, President Donald Trump’s transactional approach to international relationships, resource challenges in Asia and growing strategic distractions all help to reduce America’s credibility in the eyes of ASEAN states. And from their position on the frontline of China’s rise, they know that American talk is cheap.

ASEAN states may not like a lot of what China is doing, but it’s easy to see why acknowledging the realities imposed by a rising power next door might seem more attractive than betting on the vague promises of a superpower thousands of kilometres away.

It’s not surprising, then, that at least some ASEAN countries have shifted more support to China, and that China is becoming even more emboldened. And as time goes by without any real, practical checks on Beijing’s behaviour, its momentum continues to build. The growing credibility gap has real consequences.

America’s most visible military responses to China’s maritime aggression and territorial expansion have been in the form of freedom-of-navigation operations (FONOPs) around some of China’s claims, as well as some high-profile port visits and exercises with regional partners. But these initiatives don’t provide the level of reassurance needed to encourage ASEAN states to really help balance China’s power.

Although US FONOPs attract a huge volume of media coverage and elicit creative diplomatic responses from Beijing, as James Goldrick has pointed out, these operations aren’t specifically about China. Rather, they’re part of a 40-year-old US program designed to challenge all states’ excessive maritime claims. The US carries out FONOPs against its own partners, including against ASEAN states’ own South China Sea claims, and a program partly aimed at those states is unlikely to help build much confidence with them.

Similarly, port visits and military exercises don’t really do much to bolster ASEAN states in the face of growing Chinese power, and this goes for visits and exercises by Australian units too. Traditionally, these types of activities carry significant diplomatic value, because the highly visible presence of sovereign power can reassure or deter as the case requires. But what exactly are we reassuring Southeast Asian nations of? And how much power is necessary to do it effectively?

According to Australia’s chief of navy, Michael Noonan, the recent Indo-Pacific Endeavour deployment demonstrates to our regional partners the fleet’s ‘growing capability’. That may be true, but in maritime Southeast Asia, capability needs to be seen in relative terms, and I’m not sure that the arrival of a couple of Australian ships provides much confidence to countries staring down the People’s Liberation Army Navy, which in raw numbers is now the largest navy on earth.

Moreover, when Noonan speaks of the deployment sending a ‘strong message’ that Australia is a ‘committed partner’, the obvious question arises: committed to what? Commitment to exercises and partnerships is terrific, but we hold exercises and have a partnership with China too, so what reassurance are we actually giving? ‘Committed to the region’ is a common cliche, but it’s so vague as to be meaningless.

If the US and Australia want to build real credibility with Southeast Asian nations in an effort to collectively balance China’s power in the South China Sea—and it can’t be done without collective commitment—then we need to demonstrate more than just capability while repeating vague platitudes. We need to clearly demonstrate intent and a willingness to take risks to counter China’s aggression. The environment has changed and we can’t just do what we’ve done before.

Joint South China Sea maritime patrols with ASEAN partners would be one way of signalling this commitment. While ASEAN states have previously regarded joint patrols with the US as overly inflammatory, the same isn’t necessarily true for Australia. Our involvement would be less outwardly provocative than that of the US and more likely to gain support from ASEAN countries.

Indonesia, for one, has repeatedly raised the possibility with Australia, and been given a quiet ‘no thanks’. But joint patrols of the southern reaches of the South China Sea with Indonesia would be a good starting point in clearly signalling our rejection of China’s aggressive actions, while also expanding military-to-military links in an operational environment.

Admittedly, such patrols would have to confront an extremely complex and sensitive geopolitical and operational environment and would require some carefully crafted and workable rules of engagement. These difficulties aren’t to be understated, but they’re also not impossible to resolve.

Such a move would risk worsening the ‘deep freeze’ in Australia–China relations. But focusing only on the short-term consequences ignores the bigger problem: with all hopes of China becoming a ‘responsible stakeholder’ now dead, the capacity for China to constrain our maritime freedom of movement will only grow as its power grows. Without action, at some point we’re likely to find ourselves strategically reliant on the benevolence of an expansionist dictatorship.

To change the dynamics, we need to help foster a meaningful, US-led collective balance to China’s maritime power within Southeast Asia. And the same old flag-waving won’t cut it.

China and the geopolitics of the Pacific islands

Australian debates about the geopolitics of the Pacific islands in many ways represent the broad contours of discussions about Australia’s foreign and strategic policy, notably our relations with China. It’s possible to identify two dominant perspectives in these debates.

The first concerns the risk that, over the coming decades, a potentially hostile China establishes a strategic foothold in the Pacific islands from which it could threaten Australia. Preventing this has been identified as one of Australia’s primary strategic interests for the past 30 years. These concerns have recently been heightened by, for example, the assertive stance taken by Chinese Defence Minister Wei Fenghe at the recent Shangri-La Dialogue, or the comment by Professor Yu Lei from Liaocheng University, at a workshop at the Australian National University on 3 June, that it would be helpful for Beijing to have military bases in the Pacific islands to break the ‘encirclement’ of China.

Having been part of conversations about Pacific islands’ geopolitics in Canberra, Washington and Wellington over the past six months, I’m concerned that this viewpoint risks creating self-fulfilling prophecies about the perceived threat posed by China.

The second perspective is characterised by scepticism about what China’s presence in the Pacific islands means for Australia and Pacific island states and criticism of Australia’s increasingly securitised approach to its relations with the region. Concerns about potential militarisation of the region have been heightened by recent Australian defence-related announcements, including the signing of a memorandum of understanding with Papua New Guinea to redevelop the Lombrum naval base on Manus Island.

This perspective emphasises the autonomy and agency of Pacific island states when dealing with China and other external powers, as well as their desire to be ‘friends to all’. My concern is whether Pacific island states will be able to maintain their autonomy, exercise their agency or avoid the wider geopolitical debates.

At the 3 June ANU workshop, participants from Australia, New Zealand and the Pacific islands considered the implications of the changing geopolitics of the region. It was clear from the discussions that Pacific islanders are concerned about being dragged into debates about geostrategic competition that they don’t want to be part of. Pacific islanders are well aware of the consequences of geopolitical competition; the front lines of World War II in the Pacific were largely in their neighbourhood.

It was also clear that Pacific island states don’t always share Australia’s geopolitical perspective. In particular, many don’t necessarily see China as potentially threatening. In fact, Pacific island states have developed ‘tactical, shrewd and calculating approaches’ to exercising their agency in relation to the ‘often ignorant and patronizing attitudes’ of partners such as China and Australia.

And this is an important point for Australians to remember in discussions about the potential for a ‘new Cold War’.  While it’s important not to be too relativistic and treat Australia and China as morally equivalent—one is an (admittedly imperfect) liberal democracy and the other is an authoritarian state—for many Pacific islanders, Australia is not seen as inherently ‘good’.

We can’t assume that our attempts to exercise leadership will result in Pacific islands’ ‘followship’.  Australian colonialism is within the living memory of many Nauruans and Papua New Guineans; Bougainvilleans have vivid memories of Australian-donated helicopters being turned into gunships, and Manusians and Nauruans live with the consequences of Australia’s ‘Pacific solution’.

Most significantly, as Collin Beck, Permanent Secretary of the Solomon Islands Ministry of Foreign Affairs and External Trade, said in his keynote speech, climate change is a ‘death sentence for the Pacific’. Indeed, climate change was recognised as the ‘single greatest threat’ to the region in the Pacific Islands Forum’s 2018 Boe Declaration. Australia’s failure to take serious domestic action to meet its Paris Agreement targets raises questions about our commitment to our Pacific ‘family’.

The most encouraging thing to come out of the workshop was the recognition that there are opportunities for moving the Australian debate forward by addressing the gap between these differing perspectives.

First, while scepticism about the potential consequences of China’s increased presence in the Pacific islands is sometimes characterised as, at best, naive, or, at worst, appeasement, no participant denied the emerging strategic and geopolitical realities facing the region. The contentious debate is around their likely consequences.

Second, Pacific island states want their interests to be respected, and can creatively use their political authority to pursue them when dealing with China, Australia and other partners. Australians need to be circumspect about our ability to exercise influence and not assume that the strategic interests of Pacific island states will necessarily mirror our own.

So instead of Australian debates about the geopolitics of the Pacific islands being framed as a ‘China choice’, they could instead represent a ‘China chance’: the opportunity to identify interesting ways for Pacific island states to exercise their agency to facilitate partners such as Australia, New Zealand and China working together to build confidence and defuse tensions in the region. Given the alternatives, this approach at least seems worthy of further debate.

The Australian Army should focus on what it does best

The Australian Army’s strategic paradigm since the end of World War II has been based on the belief that the US will be the defender of last resort for Australia. However, a more inward-looking America, a more assertive China and an apparent waning of liberal democracies are forcing a reassessment of that belief. Those developments also raise the all-important question of whether a ‘new normal’ is emerging in the Indo-Pacific region—one that’s marked by opportunistic aggression, disintegrating security partnerships and expanding mandates for militaries.

In such a highly uncertain and dynamic strategic environment, countries would be forced to take greater responsibility for their own defence while devoting more resources to preparing for a wider set of contingencies over a longer period. It would also fundamentally affect the Australian Army’s identity and purpose. Like other armies, Australia’s operates in the zone of ‘known unknowns’—it knows it will face situations in the future that it can’t fully foresee at present. It can’t predict when they will arise, or in what combination or intensity, and yet it must prepare for them as best as it can.

How should the army comprehend and conceptualise this challenge? What implicit assumptions are revealed by conversations now taking place, and how should those assumptions be judged? The assumptions represent the ‘unknown knowns’—shared values and beliefs that are so deeply ingrained in the army’s organisational ethos that they’re rarely articulated, let alone tested. They affect decisions without people even being aware of their existence. If they turn out to be faulty or outdated, they could prove highly destructive. Being clear about them is of paramount importance for the army as it seeks to orient itself for 21st-century challenges.

Discussions within the army currently centre on how it should maintain its strengths relative to those of its adversaries, including in the domains of information, urban, space and cyber warfare. The most recurrent questions are about how best to defend our territorial and economic interests against China’s assertive expansion and how to maintain our technological edge against adversaries, including violent non-state insurgents.

As apt as those questions are, they reveal an assumption that the most appropriate response to a potential threat would be unilateral action by the Australian Army. Other underlying assumptions are that technology is a game-changer for Australian military capability and that a technological edge, once achieved, can be easily maintained over time. While those assumptions need to be rigorously tested, they are neither conceptually sound nor consistent with the pattern of the army’s engagements since federation.

Comparing one’s capabilities to those of other players—to judge whether or not we’re better than others—is a measure of what in academic parlance is called ‘absolute advantage’. By contrast, judging our own expertise in particular skills or capabilities relative to all other skills or capabilities that we could be engaged in is a measure of ‘comparative advantage’.

Absolute advantage is more appropriate for large armies that need to achieve battlefield dominance over adversaries to win wars. Such armies envision a comprehensive, joint-force ability to engage in at least two theatres simultaneously, and to both overcome adversaries and withstand attrition. Neither of those goals is feasible for a small, ‘boutique’ army like Australia’s, which could never overcome the much larger forces in the region, even if it were to double its size. This is particularly true of conventional forces, but also in asymmetric capabilities such as information and cyber warfare.

Instead, the army should focus on what it does best. It should embrace the concept of comparative advantage as the framework for thinking about future capability. This will allow it to make the most appropriate use of scarce resources and provide flexibility to deal with new and unexpected threats. It should also enforce discipline in evaluating what capabilities to maintain and enhance and what new ones to acquire. Doing so would also be consistent with its historical pattern of engagements.

The army’s operational deployments have been as a partner in multinational coalitions, which, in most cases, were spearheaded first by the UK and later by the US. Those operation have almost always been overseas, though always limited in scale and scope to discrete zones within a broader theatre. And the army has proved its mettle in every combat theatre it has participated in. The respect it has earned in combat has been enhanced by its contributions in areas such as commanding and training contingents of smaller and/or local armies, planning, transportation and logistics. The army would not have achieved this but for the clear focus it has maintained on its strengths and constraints, as well as the contribution it can make within a bigger team of coalition partners.

This raises some important questions:

  • What qualities and capabilities did the army demonstrate, and what outcomes did it deliver, to earn respect in the past? Will they become more or less valuable and important in the 21st century? Is the army’s valuation of them changing over time?
  • Will an apparently newer focus on overcoming adversaries and maintaining a technological edge allow the army to achieve the same kind of effectiveness it has in the past?
  • Will multinational coalitions be less relevant in the future than they have been in the past?
  • Does Australia envisage having to defend its territorial interests more than participating in overseas coalitions, including in peacekeeping, counterinsurgency and disaster-relief operations?
  • How does the army define effectiveness in terms of capabilities and strategic outcomes? Will those definitions change through the 21st century?
  • Will the US continue to guarantee Australian security?

So, will the future be fundamentally different from the past? A reasonable hypothesis is that, while the strategic environment will be more dynamic, uncertain and complex, the core pattern of the army’s engagements will continue to be defined by its relatively small size, scarce resources and traditional strengths. To be effective, it will need to continue focusing on what it does best in working with others. Future capabilities and operations should be judged by this standard of comparative advantage.

Pressure builds on Huawei (part 1)

A global struggle over the future of communications is underway. It is centred on Huawei, China’s ‘national champion’ in communications, and notably its leading role in the emerging technology of 5G. The remainder of 2019 is shaping up to be a decisive period in the struggle; developments in the next few months will determine the terms of 5G’s worldwide adoption.

For the first time in living memory, the United States is facing a strategic challenge to its position at the forefront of communications technology and infrastructure networks. Alarmed by the rapid accretion of China’s influence in the field, the US has taken the initiative against Huawei. Moving decisively against the company across a range of areas, the US government is exploiting Huawei’s principal vulnerability: its continued reliance on the outside world. It is a perfect example of what Henry Farrell and Abraham Newman have dubbed ‘weaponising interdependence’—governments using the characteristics of the globalised economy to further their strategic goals.

On 15 May, President Donald Trump issued an executive order prohibiting the sale of American technology to Huawei and other companies that are ‘subject to the jurisdiction or direction of a foreign adversary’. The US Commerce Department also placed Huawei and its affiliates on a list of entities requiring permission from the department to purchase American technology.

The potential effects of these directions are massive. This is because Huawei remains dependent on a range of American components for its hardware. Critical links in its supply chains, particularly in relation to semiconductors, are based in the US and therefore vulnerable to an embargo. Huawei smartphones, for instance, use radio frequency chipsets supplied by American firms Qualcomm, Skyworks and Qorvo. American suppliers also dominate the specialised markets for photonic modules and antennae Huawei uses in its network hardware.

Although Huawei claims to have stockpiled semiconductors in anticipation of this eventuality, there can be no escaping the magnitude of its implications for Huawei’s operations. The ban is reported to affect 1,200 US suppliers and restrict US$11 billion in annual sales to Huawei. Nor are substitute sources readily available. Japan’s Tokyo Electron, a major supplier of semiconductor manufacturing equipment, has also announced its intention to cease sales to Huawei, despite not being subject to US law. However, Taiwan Semiconductor Manufacturing Company, one of Huawei’s main suppliers, has stated that it will continue its cross-strait sales, while conceding that the US moves ‘certainly will have some impact in the short term’.

The US embargo also has major implications for software. Huawei has virtually no alternative source for the software it relies on. While it has its own chip design unit, HiSilicon, it relies on American electronic design automation software to do so. The chip architecture HiSilicon uses is patented by British company ARM, which has signalled that it will no longer license its patents to Huawei. Google has also declared that it will no longer supply Huawei with the Android OS, which powers three-quarters of the world’s mobile phones, or the suite of Google apps. Huawei now faces the challenge of filling gaping holes in enterprise and consumer software, along with the difficulties it will face manufacturing its hardware without American semiconductors.

The ban on American sales to Huawei came after the company had effectively been frozen out of dealings with important US institutions. Huawei’s ties with American universities, nine of which had received US$10.6 million in ‘gifts’ and research contracts from the company since 2012, were a key target. In August 2018, Trump signed the National Defense Authorization Act, which bars the US government and contractors from using equipment or services provided by proscribed organisations, including Huawei, ZTE, Hikvision and other Chinese enterprises. One of its provisions is that entities that receive federal funding are no longer eligible if they breach the act. This is a serious threat to universities whose research budgets are highly dependent on federal funding. The NDAA has led major US universities, including Princeton, Stanford and MIT, to sever their ties with Huawei.

These measures have effectively closed American higher education to the company, which will no longer be able to access world-leading research relevant to communications technology. Harvesting expertise from the US corporate sector will become more difficult as well, as US authorities are also slowing their approvals of Chinese nationals to secure technical jobs within American semiconductor companies.

No legal mechanism was necessary to block Huawei from supplying 5G network equipment to the major US mobile carriers, which have pledged to source hardware only from ‘trusted vendors’.

The wide range of measures targeting Huawei demonstrates that it is a serious and considered approach; it’s a decisive change in US policy that will have major consequences in both the short- and long term.

In the long term, Adam Segal has suggested that Beijing understands that Washington’s actions against its high-tech ‘national champions’ aren’t temporary but mark a strategic shift towards ‘technology containment’ in response to China’s gains in advanced technology.

Following the Trump administration’s moves against ZTE in April 2018, later softened, Chinese President Xi Jinping advocated the pursuit of self-determination in advanced technology, describing ‘core technologies’ as ‘important instruments of the state’. In July 2018 he told a party committee, ‘China must improve innovation capabilities for key and core technologies and keep a firm hold on the initiative in the development of science and technology to offer a strong technological guarantee for China’s development.’

Along with pursuing self-sufficiency, Huawei may also look for other ways to insulate itself from American measures, such as investing in third-party nations’ technology sectors, encouraging key Taiwanese suppliers to relocate to the mainland, and continuing or escalating cyber-enabled intellectual property theft. However, it is estimated by one expert that it will take China a decade to develop its own semiconductor capabilities, likely at tremendous cost.

Irrespective of the long-term implications for Huawei and China’s technological development, the US actions against the company will have considerable implications for the immediate future. They have plunged Huawei into crisis. Huawei’s engineers are reported to be working overtime in response to the US measures. In the words of one employee, ‘This is a war about China having an independent communications technology industry.’

But the problems Huawei’s now facing cannot necessarily be overcome by the sheer application of labour power. For the first time since the beginning of its meteoric rise on the world stage, the company is facing serious pressure. The coming months will test Huawei’s resilience in a way it has never been tested before.

Despite challenges, Australia and China should maintain law enforcement cooperation

Australia and China convened the inaugural Australia–China High-Level Security Dialogue in Sydney in April 2017. The joint statement from the dialogue outlined a range of areas for future law enforcement cooperation: combating transnational crime—including counter-narcotics operations and economic crimes—cybersecurity and counterterrorism.

The two countries already have an established framework for cooperation, especially on counter-narcotics. Cooperation on other crime types is either nascent or aspirational. However, there are also risks and limitations for Australian law enforcement agencies working with China.

My ASPI special report, Australia–China law enforcement cooperation, released today, examines existing cooperation, discusses the risks and limitations, and makes recommendations for future cooperation.

Today, Australia has one of the strongest police-to-police relationships with China of any Western liberal democracy. And it has longevity: the Australian Federal Police has maintained a presence in China since the 1990s.

Australia and China signed a treaty on mutual legal assistance in criminal matters in 2006, leading to the confiscation and repatriation of criminal proceeds. The two countries signed a treaty concerning the transfer of sentenced persons, which came into force in 2011. Australia and China also cooperated in the ultimate arrest and conviction of Zhao Nuo, a Chinese-born Australian citizen who murdered his wife in Western Australia before fleeing to China on a false passport.

Countering narcotics importation from China to Australia is an important priority for Australia, which has a serious crystal methamphetamine (or ‘ice’) problem. China is a major drug production and transit hub and has the largest number of clandestine ice labs in the region. A large majority of the total ice imports detected entering Australia come from China. The AFP has been working with its Chinese counterparts on a successful joint counter-narcotics effort called ‘Task Force Blaze’ since 2015.

China has a particular interest in working with Australia on ‘economic crimes’, with a primary focus on fraud and corruption. This is particularly the case since Xi Jinping’s crackdown on corrupt officials. Many alleged economic criminals have fled China, taking their assets with them. Western countries such as Australia that don’t have extradition treaties with China are attractive destinations due to the lower risk of fugitives being returned to China.

China has long sought an extradition treaty with Australia. A treaty was signed on September 2007, but successive Australian governments of both political persuasions have failed to ratify it. This is due to Australian concerns about China’s political and judicial system and human rights protections.

The arguments made against ratifying the treaty highlight the concerns and risks of working with China on law enforcement. A diverse range of individuals and groups have expressed concern over China’s political and judicial system, the rule of law, and civil and human rights. The deteriorating human rights situation in Xinjiang province is of particular concern, and large-scale cyber espionage targeting Australia can’t be overlooked.

It’s important that Australia makes it clear to China that these differences complicate law enforcement cooperation and limit what can be done.

That said, Australia and China have a mutual interest in law enforcement cooperation and need to work together. Both countries experience criminal threats from drug production and supply, economic crime, money-laundering, cybercrime and terrorism. These crimes cross borders, and crime emanating from one country can, and does, reach the other.

The Australian government has a duty to protect Australia and Australians from crime and terrorism. Those threats are transnational, so effective relationships and collaboration with foreign countries such as China are essential. Australia must prevent itself from becoming an attractive destination and safe haven for criminals. And Australians who are the victims of crime expect perpetrators to be brought to justice. That means Australia should continue to cooperate with China and look for opportunities to enhance cooperation where it’s in Australia’s interests to do so and where that cooperation doesn’t conflict with Australia’s laws and values.

To ensure that Australia can continue to work with China on mutually beneficial law enforcement activities and enhance that cooperation in appropriate areas, while managing the risks involved with cooperation, Australia should delineate what it’s prepared to cooperate with China on and what it isn’t, and communicate this clearly to China.

How much cooperation is undertaken and on what issues may depend on what crime type is involved and future developments in China’s domestic and international politics. For example, Australia may be able to undertake deeper cooperation on counter-narcotics, in which legal definitions of the crimes are more aligned and less political compared with counterterrorism or cybercrime.

Australia may need to reconsider its future cooperation depending on the state of bilateral relations and future developments in China’s domestic politics. For example, a further deterioration in human rights in China may require Australia to reduce or curtail cooperation. Likewise, an improvement could allow for greater cooperation and assistance.

Thirty years after Tiananmen: it’s time to face facts and join forces

Anniversaries invite us to put contemporary events into perspective. The 30th anniversary of the crushing of the popular movement in and around Tiananmen Square on 3–4 June 1989 drives home a simple and obvious fact: the Chinese Communist Party is still here and maintains a total silence on 4 June. The strict, Leninist, ideological, intolerant and dictatorial rule of the CCP in China has become resurgent and stronger, backed up by economic might and technical ability. Not only is the CCP not going away, it appears to be getting stronger.

In fact, the party isn’t necessarily stronger. It faces severe challenges at home and brewing conflicts abroad. Much of the domestic repression and international bravado we see in China reflects an anxious effort to ensure the survival of the party-state.

But, for us in the West, the anniversary of the violent repression of peaceful protests in Beijing and other Chinese cities in June 1989 is a reminder and invitation to review the 30 years of our relations with China. We have to deal with the government of the People’s Republic of China as it is, not as we wish it to be.

Scholars have pointed out since the 1990s that economic liberalisation and the opening of China’s markets to world trade would not inevitably lead to democratisation as an automatic effect of a rising middle class. Political and popular opinion was more hopeful, and US President Bill Clinton famously expressed the confidence that China’s entry into the World Trade Organization in December 2001 would lead to liberalisation, an implied promise that China would become ‘more like us’.

It’s only in the past few years that public sentiment has turned and the realisation has sunk in that, somehow, we’ve been cheated. We let China into the WTO on a preferential basis, it made a lot of money, and it didn’t uphold its end of the bargain.

There was no bargain. The CCP knew what Clinton wanted and just assumed it was part of the US’s assault on the party’s rule. So, China’s leaders methodically set about taking the benefits of globalisation without the institutions of political liberalisation or democratisation. The CCP’s steely determination was evident on 5 June 1989.

Thirty years later, it’s clear that the Chinese party-state hasn’t crumbled, as many predicted it would in the early 1990s (and a doughty few announce annually), but has survived, and in many ways is more powerful.

Yet, at the same time, we know the current government in China faces severe challenges from economic stress, social unrest among workers and the left-behind, mounting ethnic tensions, and profound environmental problems of pollution and access to water. This has provoked anxious responses from the party that include brutal repression of Uyghurs in Xinjiang, imprisonment of Chinese lawyers for trying to apply Chinese law, and harassment of Marxist youth groups in Beijing’s universities for supporting workers, as well as a harsh but so far ineffective crackdown on endemic party corruption. Given these domestic challenges and the repressive responses of the current government in China, its increasing global power makes it dangerous. Dangerous to its own people, and dangerous to the world.

So, what should we do? We can’t change China fundamentally, but we can influence and modify the actions of the Chinese government in the world. Domestically, we are going to have to respect China’s sovereignty even as we regret and criticise the CCP’s policies. The mass detention camps in Xinjiang deserve concerted and continuous public criticism.

Nonetheless, our job now is not to change China or bring about regime change but to create and enforce the structures and incentives that we feel promote a good global order. Most fundamentally, this means we have got to work together—Australia, Canada, the EU, even the United States—when we can. Liberal countries, liberal democracies have to work together more effectively to promote a peaceful and fair global order. We need to spend less time trying to fix China and more time shoring up our ability to take care of ourselves, our societies and all of our citizens.

In short, we need to play better football. This simple metaphor suggests three ways to respond to the realities of China 30 years after Tiananmen: study the other side, bring our team together, and build a better league—that is, strengthen our China capacity.

We need many, many more citizens in government, business and public life who can read, speak and write Chinese and who have the professional training and career opportunities to build a strong and deep knowledge base about China and Chinese history, culture, politics, economics and military affairs.

We need to welcome, engage and work with our citizens of Chinese descent. They are not the problem; they are an indispensable part of the solution with their cultural knowledge and personal contacts in China’s civil society.

Finally, we need to form a united front of liberal societies to build and defend the rules of fair play. We won’t have the organisational discipline of the CCP’s United Front Work Department, but we will have the more enduring strength of transparency and free societies working in concert.

China’s Tiananmen reckoning

The 30th anniversary of the Tiananmen Square massacre of at least 10,000 people is significant for several reasons. For one thing, the deadly assault on student-led demonstrators remains a dark and hidden chapter in China’s communist narrative. For another, the Chinese government’s arbitrary exercise of power against its own citizens not only has continued since the massacre, but has become more methodical, sophisticated and efficient, with the country’s internal-security budget now officially surpassing its mammoth defence spending. Yet, at the same time, this reliance on brute force carries an ominous message for the Chinese Communist Party.

In a night of carnage on 3–4 June 1989, the Chinese authorities crushed the pro-democracy protests with tanks and machine guns. In Eastern Europe, the democratisation push led to the fall of the Berlin Wall just five months later, heralding the end of the Cold War. But the West recoiled from sustaining its post-Tiananmen sanctions against China, thereby paving the way for the country’s dramatic rise.

The West not only glossed over the massacre, but also ignored China’s subsequent excesses and unfair trade practices. US President Donald Trump recently lamented how the United States had aided China’s rise and spawned a ‘monster’: ‘They took advantage of us for many, many years. And I blame us, I don’t blame them’, Trump said. ‘I don’t blame President Xi. I blame all of our presidents, and not just President Obama. You go back a long way. You look at President Clinton, Bush—everybody; they allowed this to happen, they created a monster.’

Yet, after a long post-massacre boom, China—the world’s largest, strongest, wealthiest and most technologically advanced autocracy—is entering a period of uncertainty just as it prepares to celebrate a record 70 years of communist rule. (The longest-lasting autocratic system in the modern era, the Soviet Union, survived 69 years.)

China’s many anniversaries in 2019 are making this a politically sensitive year. The Tiananmen Square protests in 1989 were inspired by the watershed 4 May 1919 student demonstrations against Western colonialism at the same site. But whereas President Xi Jinping recently extolled the May Fourth Movement in a speech marking the centenary of that event, he and the CCP are edgy about the Tiananmen anniversary.

This year also marks the 60th anniversary of a failed uprising in Tibet against Chinese occupation. And it is 10 years since a Uyghur revolt killed hundreds in the Xinjiang region, where more than one million Muslims have now been incarcerated as part of a Xi-initiated effort to ‘cleanse’ their minds of extremist thoughts. Then, on 1 October, the People’s Republic of China will celebrate its 70th birthday.

But the anniversary of the 1989 Tiananmen crackdown is the most portentous for the CCP’s continued monopoly on power. The massacre was carried out because the party has relied on brute force since its inception, including when it seized power. During the rule of the PRC’s founder, Mao Zedong, tens of millions died in the so-called Great Leap Forward, the Cultural Revolution and other state-engineered disasters.

Adolf Hitler was responsible for an estimated 11–12 million civilian deaths, and Joseph Stalin for at least six million. But Mao, with some 42.5 million, was the undisputed champion butcher of the 20th century. And his blood-soaked rule influenced his successor, Deng Xiaoping, who ordered the savage assault on the Tiananmen demonstrators.

The CCP’s survival in power reflects not only its willingness to deploy massive violence, but also its skill at distorting reality with propaganda and snuffing out dissent. But how long can the world’s oldest autocracy continue to sustain itself? By dispensing with collective leadership and orderly succession, Xi has already undermined the institutionalism that made post-Mao China resilient to the forces of change that helped to unravel the Soviet empire.

Until Xi’s lurch to despotism, it seemed that history was by and large going China’s way. Its economy was booming, its control of the South China Sea was steadily expanding, and its Belt and Road Initiative of transnational infrastructure projects was progressing smoothly. But China is now facing strong international headwinds at a time when its economy has noticeably slowed. BRI partner countries are increasingly concerned about becoming ensnared in sovereignty-eroding debt traps. China’s influence operations in democratic countries—and the Trojan horse of Confucius Institutes at foreign universities—are now meeting increased resistance. And, more fundamentally, the paradigm shift in US policy towards China under Trump is altering the geopolitical landscape for Xi’s government.

Meanwhile, China’s growing economic risks—such as rising local government debt, higher US trade tariffs, and Western pushback against its technological expansion and trade and investment practices—are compounding the CCP’s concerns about social unrest. By prompting some multinational corporations to move production from China to Vietnam, Malaysia, Indonesia and elsewhere, Trump’s tariffs are further intensifying the party’s anxiety.

As a result, China’s triumphalism has ceased and Xi has warned that the country faces major new risks at home and abroad that could escalate and ignite turbulence. The CCP fears that it could meet the same fate as its Soviet counterpart, especially if it fails to prevent small incidents from spiralling into major defiance of its authority. This explains Xi’s emphasis on enforcing strict Leninist discipline. Yet Xi himself is undermining the CCP by building a cult of personality around his one-man rule and by inviting international pushback through his overemphasis on China’s strength and power.

The anniversary of the Tiananmen Square massacre is a reminder that the free ride China has enjoyed internationally over the past 30 years is ending. It should also serve as a warning to the CCP that its continued reliance on brute power to keep China’s citizens in line could eventually leave it on the ash heap of history.