Tag Archive for: China

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Tag Archive for: China

CT Scan

Pakistan has ordered that unless mobile phone users to confirm their identities via fingerprints, to be added to a CT database; otherwise, their service will be severed.

This week features the Prime Minister’s national security statement, the Countering Violent Extremism Summit in Washington, terror threats in the Asia–Pacific, sweeping CT legal reforms across the globe and the upcoming metadata retention bill.

Following the release of the Martin Place Siege Review on Sunday and the Review of Australia’s Counter-Terrorism Machinery the next day, Prime Minister Tony Abbott delivered the much-anticipated National Security Statement at AFP headquarters on Monday. The announcement included tighter immigration controls, a crackdown on ‘hate preachers’ and the future appointment of CT ‘tsar’ to improve cooperation between national security agencies. He also called on Muslim leaders to more frequently describe Islam as a ‘religion of peace’.

Reaction to the statement was mixed. Critics warned that the announcements risk alienating the Islamic community (‘a vital source of information on extremists’), that the tsar would be ‘good in theory but a bit messy in practice’ and that tougher laws are not necessarily more effective.  See also The Australian’s analysis of the statement in the context of Australia’s national security climate. Read more

The new US National Security Strategy, China, and the Asian rebalance

The Obama administration’s new National Security Strategy (NSS) aims to provide a comprehensive guide as to how the United States intends to secure its national interests and global position. It’s long overdue given that the previous version dates back to 2010. In the meantime, Russia’s annexed the Crimea and supported Ukrainian separatists, the Islamic State’s created havoc in the Middle East, and Iran’s moved closer to a nuclear weapons breakout capability. From an Australian point of view, what the NSS says about America’s future role and strategy for the Asia–Pacific region is of particular interest. That’s because China’s growing power and its assertiveness in regards to territorial disputes have regional allies and partners wondering about Washington’s staying power in Asia. In fact, how the US deals with the rise of China will do much to determine regional stability and the future of US leadership.

The NSS attempts to reassure Asia–Pacific allies and partners that the US will ‘advance our rebalance to Asia and the Pacific’. It posits that American leadership in this part of the world ‘will remain essential’, a proposition most Australian observers would agree with. When it comes to China, it states that while the US welcomed the ‘rise of a stable, peaceful, and prosperous China’, it would ‘manage competition from a position of strength while insisting that China uphold international rules and norms’. It’s clear that Washington expects Sino-US competition to grow, in part because attempts to reach a mutual understanding about how to organise their relationship have so far proved elusive. The NSS signals to Beijing that the concept of a ‘new type of great power relationship’ promoted by President Xi—and initially accepted by President Obama—isn’t a sustainable basis for the relationship. Both sides have divergent interpretations of what it means, with China using it to justify the creation of ‘spheres of influence’ in the Western Pacific. That’s rattled the nerves of US allies and partners, and threatened to erode US leadership credentials. Read more

China as Number One, Japan as Normal

Bustling BeijingIn 2014, China arrived as the economic Number One and Japan arrived as a ‘normal’ security player in Asia.

China confronts the many meanings and huge character test of being the biggest. Japan has just given Shinzo Abe a fresh mandate to remake Japan’s strategic role. That means four more years to grapple with Abe’s vision of what Japan must do to be true to itself, domestically and regionally (recall Tomasi’s great line: ‘Everything needs to change, so everything can stay the same’.) More than most nations, Japan is always about itself. But like the rest of Asia, Japan can’t resist being driven by China. It used to be US pressure that got Japan to shift, now it’s Chinese competition.

Asia’s headline moments in 2014 included Modi’s election in India and Jokowi’s win in Indonesia. For the trends shaping Asia’s history, though, look no further than what the year meant for China and Japan. Read more

The Bay of Bengal: the Maritime Silk Route and China’s naval ambitions

Since late 2013, Beijing has been promoting its ‘Maritime Silk Route’ (MSR) initiative as a proposed oceanic complement to its various overland ‘Silk Route’ projects. Details remain sketchy, but the proposal appears to envisage a system of linked ports, infrastructure projects and special economic zones in Southeast Asia and the northern Indian Ocean. While much of the public discussion to date has focused on ports and infrastructure, probably of greater significance is the development of new production and distribution chains across the region, with China at its centre. The concept might be seen as akin to Japan’s ‘flying geese’ strategy of the 1970s when Japanese companies outsourced component production to successive tiers of lower-cost states in Southeast Asia.

If implemented, the initiative would bind countries in the Bay of Bengal and the northern Indian Ocean much closer to the Chinese economy. Several states in the region, including the Maldives, Sri Lanka and Bangladesh have indicated an in-principle agreement to participate in the MSR and are keen to encourage Chinese investment in port and transport infrastructure and manufacturing facilities. India has been much more circumspect about the proposal, and the visit of President Xi Jinping to Delhi in September 2014 failed to elicit an endorsement of the project from Prime Minister Narendra Modi. Read more

The Bay of Bengal: the scramble for connectivity

Bengal tigerThe Bay of Bengal has long been the poor cousin of the long Asian littoral. Thailand is often seen as one of the Asian ‘Tigers’, but Bangladesh, Myanmar and Sri Lanka missed out on the economic miracles experienced in East Asia, due to a large extent to the political instability and civil conflicts that plagued the region. But that’s changing fast: economic growth for 2015 is projected at 6.4% for Bangladesh, 7.5% for Sri Lanka and 8% for Myanmar with similar rates projected for following years. Indeed, while there are still many hurdles to be overcome, it’s possible that over the next decade they could experience breakout growth similar to that experienced by core ASEAN states in previous decades.

Two key factors constraining growth are a low level of economic integration within the region and a dearth of infrastructure: especially transport connections within those countries to neighbouring states and the rest of the world. A key driver of prospects of Bay states will be their ability to take advantage of the economic opportunities presented by their huge neighbours, China and India, in terms of regional integration and infrastructure development. Indeed, the simultaneous expansion of Indian and Chinese interests in the area is turning it into a zone of economic and strategic competition. We’re seeing a remarkable scramble by China, India and now Japan to build new ports, roads, pipelines and railways throughout the region. Read more

The Bay of Bengal: the Indo-Pacific’s new zone of competition

The Bay of Bengal is fast becoming a key area of economic and strategic competition in the Indo-Pacific. It’s the largest bay in the world and forms an important, if neglected, part of southern Asia. Bookended by India on its western side and Thailand to its east, with Bangladesh, Myanmar and Sri Lanka in between,  this part of the Asian littoral hosts a huge population and is passed by some of the world’s most important trading routes. But the area has long been ignored by Australia. Countries such as Bangladesh, Sri Lanka and Myanmar missed out on the great economic boom experienced by the East Asian tigers during the latter part of the twentieth century and so trade with Australia is relatively meagre. The Bay is not given the strategic attention lavished on East Asia, West Asia or the Middle East. Nor has it seen the hype given to India as an emerging regional power. Indeed, much of the Bay has been of little interest to the world, other than in terms of poverty, natural disasters and political instability.

Few now even perceive the Bay as constituting a ‘region’.  Since the end of World War II, geographers, academics and diplomats preferred to cut the Bay in two, drawing a sharp line between what came to be called ‘Southeast Asia’ and ‘South Asia’.  As a result, specialists on Southeast Asia tend to know little about South Asia and vice versa. Those mental maps and divisions may have made more sense in the last century, but they make much less now as deep historical interconnections across the Bay reassert themselves and the area grows in economic and strategic importance. Read more

Obama and Xi speeches on G20 sidelines bode well for Australia

President Barack Obama and President Xi Jinping of China greet children during the State Arrival Welcome Ceremony at the Great Hall of the People in Beijing, China, Nov. 12, 2014. (Official White House Photo by Pete Souza)

Despite US President Obama drawing attention to Australia’s inaction on climate change, we should be extremely pleased with his speech, as well as that of Chinese President Xi Jinping. Obama’s speech has reinforced the US rebalance to the Asia Pacific at a time when American attention has again been hijacked by the Middle East; Xi’s has elevated the status of the Australia–China relationship at a crucial time for the region.

While a large component of Obama’s speech was a call to action on climate change (perhaps appealing to his young, student audience), a significant portion focused on the US rebalance to Asia. That should be music to Australian ears as well as to other US allies in the region. Obama conceded that events around the world had ‘demanded [US] attention’ including ISIL, Russian aggression in Ukraine and the outbreak of Ebola. However, he reassured allies and partners that those challenges weren’t distracting the US from the Asia Pacific because ‘…in each of these international efforts some of our strongest partners are our allies and friends in the region’. Read more

ASPI suggests

PredatorCSIS has just released its 2015 Global Forecast which examines the crises and opportunities likely to arise in the year ahead. But you’ll have to flick past chapters on Putin’s new Russia and US influence in the Middle East before you get to the section on Asia, which begins with an essay on Asian perceptions of the rebalance (PDF).

What would you do with a cool US$180 million? To put the price of the next generation aircraft in perspective, Defense One editor Patrick Tucker uses cost estimates generated by NASA’s chief scientist to find five things you can buy for the price of an F-35. Focusing on trade-offs in national security, Tucker’s list includes boosting literacy (and he explains why this is military-related) and building a robotic air force.

It’s been a year since the International Court of Justice revised its decision on who—Thailand or Cambodia—owned the disputed Preah Vihear temple but, as Greg Raymond notes, not a lot has happened on implementing the revised judgement. For more on the challenges in intra-ASEAN border issues, keep reading his explanation for the lag here. Also on Cambodia, with the ASEAN Economic Community set to be established in 2015 (but likely to be delayed), read Heng Pheakdey’s piece on how to unlock the country’s economic growth. Read more

Economic diplomacy alone won’t make China a leader

Leadership can’t simply be bought with economic largesse.

Recently the growing rivalry between the United States and China seems to be spilling over into the economic and institutional arenas. The US is leading the push for the Trans-Pacific Partnership, a new regional free-trade agreement which excludes China. And Beijing appears to be implementing a new strategy for transforming its own economic strength into regional leadership.

Whereas China previously used bilateral channels to build relationships and acquire influence, it’s now leading multilateral initiatives, headlined by the US$50 billion Asian Infrastructure Investment Bank and US$40 billion Silk Road Fund—the latter planning to build a network of trade-and-transport infrastructure linking China to Central and South Asia, the Middle East and Europe. Those initiatives have the potential to eclipse the World Bank and Asian Development Bank as the dominant multilateral lending institutions in Asia, shaking the foundations of the regional order set up by the United States following World War II.

Beijing is also pushing back on the multilateral trade front, securing an agreement from APEC leaders for a two-year study of a Free Trade Area of the Asia-Pacific. The FTAAP could become a direct competitor to the Trans-Pacific Partnership, the central economic component of the Obama Administration’s rebalance to Asia. Read more

Will China regress to the mean?

Shanghai Fans of English Premier League soccer may be aware of the phenomenon known as the ‘Manager of the Month’ effect. According to that, a team’s performance tends to drop the month after its coach has been given the ‘Manager of the Month’ award. Some say it’s because the winner grows overconfident and slips up. However, as the London Times sports columnist Danny Finkelstein points out, it’s actually just a reflection of a statistical phenomenon known as ‘regression to the mean’. A month is a short period in soccer and so it’s likely that a manager who did well in such a time frame is simply lucky and all that happened is that the following month his (it’s always ‘his’ in the EPL) luck ran out.

Now what does this have to do with China? Well, former US Treasury Secretary Larry Summers and fellow Harvard economist Lant Pritchett have just written a paper—described by Marginal Revolution’s Tyler Cowen as ‘one of the best and most important economics papers I’ve seen all year’—suggesting that regression to the mean is exactly what’s most likely to happen to the Chinese economy. Analysing decades of statistical evidence on economic growth, they note that the best predictor of how much a country will grow in future isn’t its current growth rate, rather the global average growth rate. Expansions as rapid and as sustained as China’s are historically rare. Most countries which are highly developed today got there by posting solid and moderate but sustained economic growth over a long time frame (the US, Britain, Denmark). Many lower income countries by contrast have hosted spectacular booms over a couple of decades, followed by busts which undo many of the gains (Brazil being one example). Read more