Tag Archive for: China Choice

Beyond (Hugh) White papers

If Australian politicians are certain about one thing regarding the future, it’s that ‘we do not have to choose’ between the US and China. This panglossian optimism is easily mocked, though a small industry of scholars has devoted itself to deciphering whether Australia has already chosen, or whether a series of ‘mini-China choices’ rather than one big decision is a better way to view it.

Yet, as Voltaire points out in his novel Candide, where he mocks poor Professor Pangloss—who endlessly repeats ‘this is the best of all possible worlds’ while everything around him burns and collapses—debates about whether to be optimistic or pessimistic don’t do us much good. Like the good Enlightenment figure he was, he urged readers to instead ‘cultivate one’s garden’ and focus on practical and everyday steps.

A similar caution could be offered to the current regional security debate. Not only is it largely pointless to debate the distant future of our choices, but the debate itself is probably harmful. The very terms of the ‘China choice’ suggest that countries Australia’s size can only respond. Or that they are simply acting as the big states force them to act. For many, this is now all the explanation needed to explain Australian foreign policy.

The harm of this explanation taking root around our region or at home can hardly be overstated. It’s time therefore to move beyond the White papers—the Hugh White papers.

Rather than Australian officials merely refuting (the strawman version of) Professor White’s work, we need to hear our policymakers offer clear and practical guidance on how Australia is managing the challenge of our changing regional order.

In an otherwise eloquent speech at the Shangri-La Dialogue, Malcolm Turnbull clunkily said:

some commentators argue that Australia has to choose between Beijing and Washington. It is an utterly false choice … Nothing constrains us in our dealings with the other, neither constrains us in our dealings with the other—our foreign policy is determined in Australia’s national interest and Australia’s alone.

Yet this is a formless statement. It doesn’t give any evidence that this is occurring. It can also be easily misinterpreted. Ely Ratner, a well-informed scholar of Asian security issues at the US-based Council on Foreign Relations, tweeted at the time that Turnbull’s line sounded like ‘Australia first’.

Rather than saying that we don’t have to choose, Australia’s leaders should be saying what they’re doing.

They should be providing an explanation that makes clear why we would support the Asian Infrastructure Investment Bank, and yet worry about artificial islands in the South China Sea, and why we would protect our alliance with the US, and yet refuse to conduct naval freedom of navigation operations.

Without an explanation, our recent behaviour could look incoherent. Indeed, many assume it is, believing that Australia chases dollars when engaging China and seeks sanctuary when engaging the US.

As I argued in a submission to the foreign policy white paper (PDF), building a narrative for how we have acted and will act is a task ideally suited to that forthcoming document. Having a story that’s easily understood and persuasive, and that explains how and when the Australian government acts internationally, will go a long way towards improving both our international diplomatic impact and domestic support for the costs and challenges of active engagement with the world.

In the 1980s, we had the story of ‘engagement’ with Asia. Though Australian officials and businesses had been engaging with the region for several decades, this idea achieved several things. It provided transparency that allowed onlookers to understand our behaviour. It legitimated and justified that behaviour in the face of critics, and it helped the various arms of government coordinate their efforts. For a country of our size, every bit helps.

The idea of engagement was later trotted out in various forms by the governments of Kevin Rudd and Julia Gillard, but it no longer worked. Our major trading partners are almost all in Asia. We’re a member of the proliferation of regional governance forums. And there are growing business, people, social and cultural links.

I wish I could end this blog post with a magic formula that could be as intuitively appealing and useful as a new narrative for our foreign policy. But I can at least offer what I think are the questions we need to have answers to in order to find a useful story:

  • What does Australia want Asia to look like in 2030?
  • What role will Australia play to help the region achieve that vision?
  • What are the right pathways, tools, partners and other mechanisms to achieve that vision?
  • How important is it to Australia that this ambition is achieved?

If we can answer those questions, we can have a sense of the purpose of our nation’s foreign policy. Saying you want to achieve your national interests isn’t being purposeful. It’s just a generic claim to want good things over bad things. Instead, we need a specific and public purpose, set out in terms of what we want to achieve. After several years of simply dismissing the challenge posed by Hugh White’s choice thesis, it’s time to provide an explanation of our own.

The Richardson doctrine: friends with both, allies with one

‘Friends with both; allies with one.’ Thus the Richardson doctrine seeks to define Australia’s most appropriate relationship with the United States and China.

We can be sure that Dennis Richardson, one of Australia’s great public servants, thought deeply before he unveiled his doctrine on the eve of his recent retirement. Richardson has to be taken very seriously indeed because he’s a tough-minded realist without any dewy-eyed illusions about the either the United States or China.

The question is whether the doctrine is an adequate framework for future policy given the increasingly uncertain strategic, political and economic circumstances now facing Australia. Current evidence suggests that Australia might require policies more complex and nuanced than those implied by the Richardson doctrine. The doctrine might require a formulation that is sharper towards both the US and China.

It’s now commonplace that a central issue for Australian foreign and strategic policy is how to balance the nation’s economic relationship with China with its security alliance with the US. The issue has been complicated by China’s increasingly aggressive maritime activities as it moves to challenge US power and by the assertive and in some ways isolationist and inconsistent Trump administration in the US. As a crisp short-hand formula, the Richardson doctrine raises some challenging questions.

Dennis Richardson has long been prominent in articulating the difficulties in maintaining friendly relations with China. He has pointed to China’s land reclamation and military installations in the South China Sea (activities condemned by the UN’s Arbitral Tribunal). He has spoken of China’s ‘very active’ intelligence activities directed against Australia. He has spoken of China’s efforts to control Chinese language media in Australia. ASIO chief Duncan Lewis has warned about Chinese donors to Australian political parties having strong links to the Chinese government.

These and other activities, including efforts by Chinese diplomats to recruit Australian-based Chinese (including students) to help advance Chinese interests, argue against Richardson’s view that Australian-Chinese friendship can be developed with trust and confidence—especially given that China is now an expansionist authoritarian Leninist state with no regard for democracy and a demonstrated desire to throw its weight around in the world.

Equally a prudent Australian government can’t take friendship with the United States for granted given the brutish populism and the so-called ‘America First’ platform on which Donald Trump stands. At least Australia shares democratic values, common security interests, a great deal of military history and significant alliance activity with the US. There’s a deep basis for ongoing Australia-US friendship to survive the Trump ascendancy largely intact.

No similar basis exists for Australia’s friendship with China. There are different degrees, different depths, of friendship between countries. In addition to values, interests and history, US-Australia friendship is enhanced by notions of mutual respect, trust, cultural familiarity and ways of being that are absent in Australia-China relations based essentially on economic and security issues and China’s relentless pursuit of influence in this country. These subtler realities are not captured by the Richardson doctrine

There are four don’ts that Australia should observe in dealing with China. Don’t heed the siren call of ideological appeasers who want the West to concede strategic space to Beijing and overlook Beijing’s aggressive maritime activities. Don’t heed the self-serving views of those who see China solely as a benign economic opportunity and not as the determined strategic and economic competitor it actually is. Don’t allow Australian political parties and politicians to accept financial gifts from any foreign sources, especially those linked to Beijing. Don’t hesitate to pursue foreign government espionage activity against Australia as vigorously as Islamist terrorism is now pursued.

Judging by his public remarks over many years there can be little doubt that Dennis Richardson would broadly support these four don’ts. As secretary of the Departments of Defence and Foreign Affairs, as ambassador to the US, and ASIO’s director-general, Richardson has never sought to avoid the tough facts of international life. And one of those facts is that foreign espionage is as hostile and as damaging as Islamic terrorism and deserves to be treated similarly.

How then to tweak the Richardson doctrine to reflect a workable basis for Australian relations with China and the US? Here is a somewhat wordier suggestion:

With China, full and transparent economic and investment relations based on legally enforceable reciprocity always; with the US, military alliance always and friendship when differing national interests allow it.

Australia can’t expect any friendship with China to match its frank and sometimes fraught friendship with the US, and it shouldn’t pretend that careful diplomacy can change this state of affairs. China and its closest friends—Russia and North Korea—are deeply hostile to Australia and its democratic partners and are dedicated to damaging their interests.

Moreover, as Kim Beazley points out, Australia has ongoing historic obligations to intervene militarily in the event of a breach of the 1953 North Korean armistice. China’s close relationship with North Korea, and North Korea’s military recklessness, should serve as a warning to Australia that relations with Beijing will always have to be guarded. With a friend like China Australia needs very few enemies.

Stuck in the middle of U

It’s good to see that the ‘Option J’ paper Ben Schreer and I wrote is generating responses. Hugh White and Sam Bateman raise concerns about a closer relationship with Japan: both of them argue that it’s possible to get too close to Japan in a security sense, leading to unwanted outcomes, and that a submarine deal would do that. Both of them think there’s more in a sub deal for Japan than for Australia. And both argue—Sam explicitly and Hugh implicitly—that we should be less active in trying to maintain a liberal democratic order in the Asia–Pacific.

We’ll concede one point: of course it’s possible for two countries to get too closely entangled, where one is inexorably drawn into the other’s bad judgement and misadventure. (WW1 comes to mind.) But it’s also possible to do too little, and the notion of an ‘inverted U curve’, is a useful tool for this discussion. Basically, it’s a model of phenomena in which both small and large values of an input parameter produces low outputs, but intermediate inputs produce a larger effect. Think about a therapeutic drug: at low doses it won’t have much effect at all but at high doses it’ll do more harm than good, or even be fatal. In between there’s a dosage that produces the best clinical outcomes. Here’s a schematic:

Inverted U curves also appear in economic theory and other applications—Malcolm Gladwell sees them at work in school class sizes.

Applied to the Australia–Japan relationship, the ‘low dose’ part of the curve corresponds to the two countries doing little or nothing together in security terms, so missing out on benefits to be had by combining resources to meet common security threats. The ‘high dose’ regime is what Sam and Hugh worry about—getting in so deep that we’d be forced to follow when Japan pursues its interests even if the outcomes for us are worse. By ‘worse’, they mean getting embroiled in Sino-Japanese competition to our detriment, in a world where China is economically and militarily more powerful than today and the US less so.

As we said in our paper, we don’t buy that. We argue that we’re still on the upswing of the curve, and that a deeper security relationship will take us to a better, not worse, place. (A to B in the figure below.) That conclusion’s based on two key judgements. First, that China’s leverage over Australia is much weaker than is commonly supposed. Second, that it’s too early to give up on the order that has provided security and prosperity for the entire region—China included. We thoroughly explain the point about Chinese leverage in the paper.

But even if those judgments are wrong—i.e. if China does hold significant coercive power over Australia and the liberal democratic order much valued by Australia and Japan is doomed by the rise of China—we’re still not convinced that throwing up our hands and letting concerns about Chinese reactions effectively dictate Australia’s security policy is the right approach. That’s what we think the practical effect of Sam’s prescribed ‘even-handed neutrality’ would be—even if Australia could affect neutrality given its long and dearly held alliance with the US.

Simply put, if we let China dictate the regional order, we’ll get what China wants, and it’s unlikely to be what we want. Even with American power in relative decline it’s still formidable, especially when reinforced by like-minded allies. The downside risk is an escalation of tension, perhaps to the point of war. That’s a risk that certainly has to be taken into account, and the outcome could be dire, though a mitigating factor is that American military power is backed up by nuclear weapons, which should put a brake on most adventurism.

The democratic states mightn’t call all the shots any more (and shouldn’t) but we’d certainly still have a vote. The resulting compromise is more likely to be acceptable if we negotiate with resolve from a position of solidarity. The future will probably have features we’d prefer not to have, but we should try to minimise those. Giving up now and eschewing partners like Japan could take us down into the left-hand part of the curve to a bad outcome.

Finally, Hugh and Sam argue that there’s more in Option J for Japan than Australia. That’s probably true, because Japan’s circumstances are more fraught than ours. But that actually strengthens our argument, because it means that there’s little incentive for Japan to withdraw support for Australia’s subs. We’re never going to be on the other side of a Sino-Japan conflict—at worst we’ll be bystanders—but we’ll always be potential partners, so why would Japan choose to undercut us? Like China, but for different reasons, Japan has little leverage over Australia.

‘Fire on the Water’, an important book for strategists

9780870210532Young strategists are often in the market for book recommendations. Though I’m not particularly inclined to write reviews, I’d strongly recommend Robert Haddick’s Fire on the Water: China, America and the future of the Pacific to those interested in big-picture strategic issues in the Asia-Pacific. This may be the most important book to read this year; Fire on the Water has already had a powerful influence in policy circles in the US. If future policy decisions were to follow Haddick’s logic and recommendations, we’d see new opportunities to move the strategic debate forward and strengthen US and allied strategy.

Haddick does three things remarkably well in this book. First, he answers the question, ‘Why are the South and East China Seas so important to strategy?’ Though many other authors have done this and it seems obvious to those involved in strategy, Haddick’s work stands out because he writes in a style readily comprehensible to the non-strategist while still speaking to strategy and policy professionals. Haddick explains China’s ‘salami slicing’ and its investment in military hardware that exploits the vulnerabilities of US and allied military power.

Second, Haddick addresses the major theories and strategic recommendations that have effectively played a part in the discourse over US and Chinese strategy. He’s both eloquent and concise in explaining the different perspectives on China’s rise, but also highly critical. For example, Haddick discusses Christopher Layne’s prescription for ‘off-shore balancing’ and also takes on Australia’s own Hugh White. Haddick criticises White’s China Choice for its ‘overly optimistic assumptions’. Though Haddick praises White for demonstrating that the current US-led status quo is unsustainable, he concludes that ‘White’s attempts at accommodating China would achieve little good while inflicting great harm’. According to Haddick, Layne’s and White’s proposals would result in the ‘descent into a multisided, Hobbesian security competition resembling pre-WWI instability that finally resulted in great power war’. (Readers interested in this debate might want to read White’s China Choice and Layne’s The Peace of Illusions, the better to understand the authors’ different perspectives.) Read more

Honour, prestige and restraint

"Xi Jinping is the strongest and most nationalistic president China has had since Mao."

This energetic debate began with Peter Jennings taking issue with Hugh White’s gloomy prognostications about where Australia’s enthusiasm for closer strategic cooperation with Japan might lead. For Peter, the basic structure of the current order remains the best way of stabilising the region now and it’s durable over the longer run because China’s interests are served by those arrangements. In its simplest form, the central question in this debate is whether the regional status quo is sustainable over the medium-to-longer term. Hugh thinks not, almost everyone else seems to think it is—albeit with subtle differences of emphasis.

Hugh thinks China’s scale, ambition and capacity can’t be incorporated in the current order; China requires accommodation in a new setting. Somewhat surprisingly, Rod Lyon makes a more normative argument: the liberal qualities of the current order are crucial and shouldn’t be sacrificed on the altar of power politics. Andrew Phillips focuses on China’s lack of options. As he puts it, China’s capacity to transform, undermine or leave the current order is much more limited than many imagine. Read more

China’s choices in a more contested Asia

A more contested Asia: many pieces to the puzzle

Hugh White and others are right to worry about a drift toward antagonism among Asia’s great powers. China’s recent assertiveness in local maritime disputes should moreover disabuse anyone of the comforting conceit that China will forever meekly accept the meagre consolation of being an also-ran great power.

But China’s options for challenging the East Asian regional order are in fact profoundly constrained. In debating Canberra’s ‘China choice’, we must keep in mind the reality of China’s own limited room for meaningful choice in a more contested Asia.

China cannot and will not directly challenge America for regional hegemony in the foreseeable future. That’s partly because of the great economic gains China continues to derive from American incumbency. But it’s also because today’s East Asian order is underpinned by a broad-based constituency for American engagement, among American treaty allies, but also increasingly among potent non-traditional security partners, such as Vietnam. Read more

On the merits of avoiding stark choices

On the merits of avoiding stark choices

Strategic analysts have a poor record of anticipating the future shape of international relations. Most famously, apart from a few obscure French historians, no-one seriously foreshadowed the demise of the Soviet Union and subsequent end of the Cold War. Distressingly for those of us who get paid to explain what’s likely to happen in international relations in the future, there’s no shortage of other examples.

At the outset of the 1990s, the overwhelming consensus was that North Korea would collapse by the end of that decade. In the year 2014, the DPRK is nuclear-armed, there are glimmers that its ramshackle economy may be turning around, and the authority of the regime under a thirty-something four-star general appears stronger than ever.

Few envisaged the most significant geopolitical shift of the past three decades: the rise of China to great power status. Indeed, when the small but committed staff at Australia’s freshly-minted Beijing embassy in the 1970s sent cables to Canberra predicting that China would rival Japan as the region’s major power by 2000, they were laughed out of town by senior policymakers. Read more