Tag Archive for: China

Afghanistan: An opportunity for US–China cooperation?

2nd Battalion of the US Army's 502nd Regiment, supply mortar fire support for British Royal Engineers on Operation Hamkari in Afghanistan.

Michael Auslin has called for a ‘new realism’ in US foreign policy toward China, one that ‘begins with an official acceptance that we are locked in a competition with China that is of Beijing’s choosing’. Moreover he suggests that Sino-US dialogue must be ‘reset’ and ‘conducted not as an unearned gift to Beijing, but only when there are concrete goals to be achieved’.

While some, such US National Security Advisor Susan Rice, may dispute the first claim as ‘lazy rhetoric’, the second admonition to structure the relationship through a focus on the concrete goals and interests of each party isn’t as easily dismissed.

The problem in the current climate of Sino–US relations, however, is to identify areas in which those interests overlap to ‘mutual benefit’ more than they diverge. China’s ‘One Belt, One Road’ (OBOR) strategy is an area that holds potential.

According to John Hudson, where US officials see China’s resurgence and ambition in the Asia–Pacific as the core driver of regional insecurity, in Eurasia they see a ‘surprising convergence of US and Chinese interests’ that ‘boils down to one mutual goal: security’.

From this perspective, Beijing shares Washington’s desires to see a stable and secure Afghanistan and Pakistan due primarily to Beijing’s own concerns with Uyghur terrorism in Xinjiang.

The strength of this view is based on two major factors.

First, the OBOR itself, while growing out of a decades-long agenda to firmly integrate Xinjiang and overcome Uyghur separatism and terrorism through the delivery of economic development, looks set to engage China more directly in the problems of the region. With its focus on the development of trans-regional infrastructure links and investment, such as the ‘China-Pakistan Economic Corridor’, the OBOR would give China a greater stake in the future security and prosperity of Central Asia, Afghanistan and Pakistan. Obama administration officials have approvingly noted that China’s plan mirrors the intent of its own aborted ‘New Silk Road Initiative’ of 2011. Indeed, the logic of that effort suggests some complementarity between US and Chinese interests.

Second, the increasing number of terrorist attacks in Xinjiang, which China has attributed to militants based in the Af-Pak tribal areas, has arguably revealed to Beijing that it can no longer rely on the partial ‘outsourcing’ of its security to the US military presence in Afghanistan nor the Pakistani military along the Af-Pak frontier. Instead, Beijing must revise its to-date largely ‘hands off’ approach to the security situation in Afghanistan as it pursues the OBOR strategy.

Yet deeper consideration of both of these factors suggests that the potential overlap between US and Chinese interests shouldn’t be overstated.

Afghanistan, in particular, is deeply problematic for China in terms of the security of Xinjiang, its geopolitical interests and its reputation. China’s aloof approach to the country since the US and NATO intervention began, as Andrew Small has noted, has been dictated by a conflicted mindset:

‘China sat out the conflict in Afghanistan. It wanted neither a Western victory that might entrench a US military presence in its backyard, nor a Taliban victory that would pose risks to Xinjiang and the wider region. As a result, its financial and political contributions to Afghanistan were at best tokenistic, the minimum necessary to avoid alienating anyone.’

Greater Chinese security engagement in Afghanistan promises not only to make it a more overt target for radical Islamists, impacting negatively in the security of Xinjiang, but also to damage Beijing geopolitically by bringing it into conflict with its ‘all weather’ friend, Pakistan. Beijing has emerged as an active proponent of a negotiated political settlement between the Taliban and Kabul—even brokering secret negotiations between the two—in the interests of ‘stability’, while Pakistan ‘has been keener to see a level of consistent instability in Afghanistan’ rather than a secure and independent Kabul. The scope for this divide between the ‘all weather’ friends to widen was underlined by the multiple bomb attacks in the Afghan capital on 10 and 12 August. The Ghani government explicitly blamed the attacks on Pakistan and Beijing offered to extend greater security assistance to Kabul in response.

Speculation that China would actively consider a more overt security presence or engagement in Afghanistan, however, ignores the reputational costs this would impose on Beijing. Much of Beijing’s diplomatic success throughout Eurasia over the past decade has been built not only on its undoubted economic weight but also its ability to counter-pose its doctrine of ‘non-intervention’ to that of the West’s recent record of direct intervention into the affairs of others. The continued strength of this particular peculiarity of Chinese diplomacy has been most recently exhibited in Beijing’s response to the NATO-led intervention in Libya and its approach to the ongoing Syrian crisis.

Despite recent developments on the ground in Afghanistan—including the possible fracturing of the Taliban in the face of the emergence of Islamic State, in the country—it appears that China’s approach to the country remains cautious. Indeed it is difficult to discern a fundamental shift in approach to that described by Beijing’s Special Envoy to Afghanistan, Sun Yuxi, when he noted in 2014 that ‘preserving Afghanistan’s stability is not a matter of adding troops but of helping Afghanistan to quickly rebuild’.

Letter from Washington: the Xi–Obama Summit, no lovefest

President Barack Obama offers a toast to President Xi Jinping of China during a State Banquet at the Great Hall of People in Beijing, China, Nov. 12, 2014. (Official White House Photo by Pete Souza)

This was never going to be an easy meeting between the leaders of one of the oldest democracies and the world’s largest dictatorship. The two countries have an increasingly conflicted relationship: on the one hand, they are global partners, especially but not solely in the international economic sphere, but, on the other hand, their strategic rivalry, particularly in the Indo–Pacific region, is becoming worrisome. Accordingly, the meeting went as well as one could expect. But given the trajectory of the bilateral relationship this summit may well be the last one with a veneer of courtesy.

This meeting was, without any doubt, more important for Xi than Obama. This gave the Chinese president a public platform from which to be perceived back home as an equal (whether true or not) to the president of the sole superpower. It also gave Xi the opportunity to state publicly and forcefully—as he did—China’s position on issues on which the two countries disagree. Let me focus on just three of these.

The first issue on which the Obama administration has been particularly irritated about is cyber-theft. This was made abundantly clear when Obama suggested at a recent business roundtable, that the issue of cyberattacks would ‘probably be one of the biggest topics‘ during President Xi’s visit. And indeed it was. At their joint press conference, Obama said that he had told Xi that cyberattacks against US targets ‘had to stop’. In response, Xi pledged that the Chinese government wouldn’t ‘in whatever form engage in commercial theft and hacking against government networks’.

Given that, according to US officials, China was behind the recent theft of the security files of some 22 million Americans, not too many people are convinced in Washington that the Chinese government will stop cyber theft, or prevent Chinese companies from doing so against US companies. There’s little doubt that were the Chinese caught once again hacking and stealing American trade secrets that the US administration would impose a package of economic sanctions against China, as per an executive order signed by President Obama in April.

The second issue, of particular interest to Australia, is China’s aggressive behaviour in the South China Sea. President Obama broached the issue directly at the joint press conference, stating that he ‘had significant concerns’ over China’s reclamation activities which made it more difficult to resolve disagreements peacefully’. Xi didn’t budge and instead asserted that China was acting within its rights and that it wasn’t pursuing any militarisation. Any wishful thinking that China would embrace Washington’s recent proposal for Beijing to halt land reclamation and end militarization was put to rest absolutely there and then.

A third issue on which there was unsurprisingly no movement was human rights in China. Obama forcefully re-iterated his ‘deep concerns’ over this matter, and, in return, Xi, as all previous Chinese leaders have done in the past, repeated the well-worn mantra that ‘countries have different historical processes’. Given Xi’s heavy-handed approach to any opposition since he came to power in 2012, it’s no surprise that thousands of political prisoners are languishing in jails and will remain there for the foreseeable future.

Still, the summit wasn’t all bad news. The big surprise was of course Xi’s announcement of a selective cap-and-trade emission plan that would kick in by 2017. Given China’s massive environmental problems and its status as the world’s biggest polluter, this was welcomed by US officials and environmentalists. But many are sceptical that this ambitious plan can be implemented so quickly. Nevertheless, it’s a step in the right direction, and it now puts pressure on the US Congress to also take stronger action on climate change.

However, the good news on the climate change front did little to dispel Washington’s concerns about China’s overall behaviour. And some of its latest actions have done nothing to assuage those feelings. Aside from the issues discussed above, it’s obvious that China is increasingly flexing its muscles well beyond its immediate neighbourhood.

The PLA Navy has been making deep forays into the Indian Ocean, including having submarines berth in Sri Lanka and Pakistan earlier this year. Even more worrisome is the report that a Chinese aircraft carrier has been sited off the Syrian coast in the last few days and Chinese advisers are on their way. But to demonstrate that they too can hug the other’s coastline, Chinese navy ships were spotted inside US territorial waters off Alaska during Obama’s visit to that state earlier this month.

Needless to say, all this is grist for the Republican Party mill. A number of presidential candidates, with Trump leading the pack, even suggested that Obama cancel the summit. Even Hillary Clinton has jumped on the anti-Chinese bandwagon.

So while there are areas where China and the US can work together, strategic competition between the two nations is real and is more than likely to become nasty down the road. The recent Xi–Obama summit has done nothing to dispel this perception.

Beijing’s anti-corruption drive: what’s at stake? (part 2)

Beijing paramilitary police

In the first instalment of this two-part series I reflected on the CCP’s anti-corruption drive as part of an effort to underwrite the long-term legitimacy of CCP rule beyond the Xi leadership. But if enduring legitimacy is the motivation, it’s often asked why the focus is on anti-corruption and not also on other aspects of national policy, like the economy and the environment? But that question overlooks the fact that anti-corruption is in fact not the sole focus of the Xi leadership.

In order to fully appreciate the role of anti-corruption in Xi’s new strategy of national governance, one must understand the so-called ‘four comprehensives’ theory proposed by the leadership early this year. The ‘four comprehensives’ are: comprehensively building a well-off (xiaokang) society, comprehensively deepening reform, comprehensively ruling by law, and comprehensively disciplining the party. The theory is now presented by the leadership as a new strategy for governing the country under the current circumstances. It’s almost a kind of grand strategy for CCP rule in China.

The ‘four comprehensives’ have logical connections with one another. Building a well-off society is the overarching goal, and deepening reform and ruling by law are two major means for achieving this goal. The CCP is the designer as well as executor of this strategy. But in order to enhance its legitimacy in this role, it must achieve self-restraint, self-innovation and self-development by comprehensively disciplining itself. Anti-corruption is a key strategic means of disciplining party members, and part of a broader—comprehensive—strategy for maintaining and enhancing CCP rule in China.

Viewed from the perspective of the ‘four comprehensives’, one can also detect an intriguing relationship between ruling by law and disciplining the party. In CCP politics, it’s often asked whether national laws or party rules take priority in practice. This is an extremely important question for understanding the nature of Chinese politics. But with respect to anti-corruption, the question is somewhat misleading. The CCP’s anti-corruption strategy is never about the rule of law: it’s fundamentally a political question about whether the party can successfully restrain its members and about the extent to which the leadership is willing to go to clean up the party.

Huge political risks and costs lie in wait, as is apparent from the arrests of top political and military leaders such as Zhou Yongkang and Xu Caihou. But the party is compelled to undertake the project, and even to elevate a specific strategy of anti-corruption to a comprehensive approach of ‘disciplining the party’. For, as Mr. Wang Qishan recognised, the legitimacy of the CCP as the sole ruling party of China requires it to discipline itself in order to gain and enhance the trust of the people. For this reason, party rules and regulations, and associated moral education programs, necessarily come before national laws, although laws can play a useful complementary function of punishing and containing the spread of corruption. To CCP members, however, party rules lay down higher and stricter moral and behavioral standards than required by national laws. The CCP must maintain its purity and keep itself in the vanguard.

Wang Qishan and the top CCP leadership should be applauded for deploying a political vocabulary that is conducive to international and cross-cultural exchange. Breaking the taboo of examining the legitimacy of CCP rule demonstrates the self-confidence and candidness of the leadership, as well as its sincerity to conduct a meaningful dialogue with the outside world. To make the narrative of a CCP accountable to the people more persuasive, however, the party must take the idea of the ‘endorsement of the people’ much more seriously.

How to deal with and respond to the ‘endorsement of the people’ is a huge challenge to the CCP. In essence, the CCP must create a mechanism or a set of institutions for measuring the degree of satisfaction of the Chinese people with a good degree of independence and fairness, and then to respond to public needs in a timely, creative and effectively manner. Only by doing so can the CCP build the long-term support of the people and maintain the legitimacy of its rule. Such moves will also help to foster a far more positive image of the CCP to the outside world than it is capable of projecting now.

ASPI suggests

The red carpet was rolled out in Washington DC this week as some A-list visitors hit the town. On Thursday, Pope Francis became the first pontiff to address US Congress—full text and video here. In his speech, the Pope challenged US policymakers to ‘make a difference’ on a wide range of issues, from environmental degradation to the abolition of the death penalty. DefenseOne carries an interesting piece on the Catholic Church’s zero tolerance stance on nuclear weapons, which sits in contradiction to Ash Carter’s defence of the US nuclear budget last week. For more on the papal visit, check out this excellent photo essay from Sam Ellis, and The Atlantic’s break-down of the address to Congress. And for all the transportation fans out there, The Washington Post has a short history of the Popemobile.

Chinese President Xi Jinping’s much-anticipated first state visit to the US began within hours of the Pope’s departure on Thursday, after the GOP failed to have the visit cancelled. US National Security Advisor Susan Rice defended the visit on Monday, branding alternative views as ‘dangerous and short-sighted’—a burn that was reportedly directed at ex-GOP presidential candidate Scott Walker, who dropped out of the race earlier this week. Check out CSIS for some quality reads on two of the meatier topics expected to be addressed at the Summit: cybersecurity and US–China economic relations.

The Climate Council this week released a cracking new report called ‘Be Prepared: Climate Change, Security and Australia’s Defence Force. Their effort is well worth a read.

If you love a good map as much as we do, head over to The True Size to play around with an interactive map that will give you a real sense of country size—a perspective that you won’t get from the familiar Mercator presentation. The project was inspired by the West Wing and a similar infographic that focused on Africa (PDF).

Dark Fields of the Republic, a new exhibition at the National Portrait Gallery in DC, shines a light on the battlefield photography of Alexander Gardener, whose dramatic images show the ravages of the US Civil War. The BBC carries a compelling piece that highlights the collection, Gardner’s story and some of the abiding questions around the appropriateness of war photography.

CSIS’s drip-feed of South China Sea satellite images has been collected by the ABC, which has compiled some handy before-and-after snapshots of China’s land reclamation work across seven different reefs. Catch up with it here. New PM Malcolm Turnbull this week said that China’s efforts in the South China Sea have been ‘pushing the envelope’.

Foreign Policy has given a whole new meaning to #flashbackfriday by shredding Syrian President Bashar al-Assad’s Instagram account @syrianpresidency. Sifting through pages of happy, shiny images taken around Syria, FP has chosen some choice shots from the account, and contrasted them with what was actually happening in Syria at the time they were captured.

Head over to The Economist for a primer on Japan’s recently passed security bills, as well as some consideration of the Chinese reception to the legislative changes.

Laser-drones: the future is nigh—and it’s awesome! San Diego-based General Atomics Aeronautical Systems is aiming to mount a 150-kilowatt solid-state laser onto an Avenger drone to create a new generation of military weapon by 2017. Or, if mounting weaponry on drones is too high-tech for your taste, why not try dogs? Visual Engineering has created the Cerberus camera system, which can be attached to the backs of military and police dogs to give their human counterparts advantages in warzones.

Podcasts

As part of its Global Thinkers series, Foreign Policy’s Elizabeth Dickinson and Yemeni activist Farea al-Muslimi sat down to chat about how the West could contribute to a solution for the Middle East’s proxy wars, and why Saudi Arabia is taking big risks in Yemen. Listen here.

The Bridge recently featured a piece which argued that returning foreign fighters actually present a marginal threat to their homelands, and evaluated counter-radicalisation efforts. The author, Collin Hunt, was recently interviewed by The Loopcast.

Videos

Brookings recently hosted a discussion with Will McCants on ISIS’s strategy and the future of jihadi terrorism, on the back of the launch of his recent book, The ISIS Apocalypse.

Zbigniew Brzezinski, former national security advisor to President Jimmy Carter, sat down with Jon Alterman and Ben Daus-Haberle as part of a three-part series on foreign policy, global politics and global crisis. In part one (6 mins), Brzezinski thinks about how the US should approach its relations with China and Russia.

Events

Canberra: The AIIA’s National Conference will kick off on 19 October, and is set to include a stellar line-up of speakers, such as Julie Bishop, Tanya Plibersek, Gareth Evans and Brian Schmidt. Be sure to register your interest here.

Beijing’s anti-corruption drive: what’s at stake? (part 1)

18th CPC Congress Beijing

The Chinese Communist Party’s (CCP) anti-corruption drive is of staggering scale, reach and audacity. From the powerful ‘tigers’ to the low-ranking ‘flies’, the anti-corruption policy of Xi Jinping’s leadership has targeted and frightened multiple segments of the party, government, military, and state-owned enterprises.

Many have since wondered about the motivation and nature of the wide-ranging and ambitious anti-corruption policy unleashed by President Xi and carried out by Wang Qishan, who is Secretary of the powerful CPC Central Commission for Discipline Inspection (CCDI) and one of the seven members in the Politburo Standing Committee.

On 9 September, I attended a now-annual conference co-hosted by the International Department of the CCP Central Committee and the Central Commission for Discipline Inspection of the CCP Central Committee. This year’s theme was To Discipline the Party: Responsibility of the Party. It was appropriate that Wang—who’s in charge of the party’s anti-corruption drive and the broader strategy of ‘comprehensively disciplining the party’—agreed to offer his views to a select group of scholars and officials from China and abroad.

As I listened to Wang’s remarks at the Great Hall of the People, I realized that he was making a revolutionary statement in the history of the CCP. Wang raised an extremely provocative and hitherto taboo idea in CCP political discourse: he spoke of the legitimacy of CCP rule. Never before has the CCP leadership openly raised and even questioned the legitimacy of its own rule. Moreover, Wang actually set out to explain the legitimacy of CCP’s long one-party rule in China, which he pointed out to be the key distinguishing characteristic of Chinese politics. The legitimacy of CCP rule, Wang explained, is based on the ‘endorsement of the people’ and the ‘choice made by the people.’ He elaborated that the CCP depends on the people being satisfied and happy.

Through his comments, Wang was trying to imply that the anti-corruption effort was much more than a short-term expedient for the new leadership to win favor from the public or to establish political authority through factional or interest-groups-related struggles—just some of the hypotheses offered by outside observers for the push. He pointed out that anti-corruption isn’t a political campaign or movement—Mao’s Cultural Revolution taught the CCP that campaigns and movements eventually cease to exist. Anti-corruption, this time, will ‘always be on the road’, and ‘there is only a beginning, never an end’.

Those remarks, together with the invocation of the all-important concept of CCP legitimacy, suggest that Wang is seeing anti-corruption as a long-term strategy to maintain and enhance the legitimacy of CCP rule in China; it’s not just a temporary device for consolidating the rule of the new Xi leadership. Such an explanation would refute many existing hypotheses about anti-corruption. According to this view, what’s at stake in anti-corruption is nothing less than the legitimacy and survival of the CCP as the sole ruling party in China—something much more significant than the survival of the current Xi leadership, which, after all, has an implicit two-term limit of 10 years.

But is that explanation credible? Wang struck many of us in attendance at the meeting as a deeply impressive political leader and as an intellectual. His remarks on the many issues of dissatisfaction the Chinese people have with CCP rule left the impression that the current generation of CCP leaders face significant governance challenges in China. He spoke of the difficulties and complexities of CCP rule in today’s ‘extraordinary difficulty’ period, and he even said that the new leadership hasn’t taken rest for a single day since it took office.

His legitimacy-based explanation of the anti-corruption strategy would be readily comprehensible to a Western audience. The term ‘legitimacy’—Wang used the Chinese translation of hefaxing—is, after all, of Western origin. The difference between Wang’s narrative and many existing explanations for the anti-corruption effort comes down to the timeline: one takes a short-term tactical perspective, the other a long-term strategic view. While many Western analyses focus on the short-term interest maximization and political survival of the new Xi leadership, Wang takes a strategic view geared toward the long-term legitimacy of CCP rule beyond the expediencies of the current leadership.

A second, and final, instalment will look at CCP rule and legitimacy in the context of the party’s new ‘four comprehensives’ governing strategy advanced early this year.

Is China ready to resume its imperial glory?

Chinese Soldiers in The Forbidden City - Beijing, China

Since assuming the Chinese Communist Party (CCP) leadership in November 2012, Chinese president Xi Jinping’s great ambitions have become well known. Domestically, he’s advanced the grand goal of what he calls the China Dream: ‘the great rejuvenation of the Chinese people’. He has surprised virtually every observer by the speed and efficiency with which he’s consolidated power in the party and military. Xi is now seen as China’s most powerful leader after Deng Xiaoping, if not Mao Zedong.

The two major pillars of Xi’s assertive foreign policy—security activism predominately in the maritime domain, and economic diplomacy by way of the so-called ‘one belt, one road’ policy—suggest that Xi isn’t content with making China a great power in the region and beyond; he also wants to make China a leading and even dominant power in key areas of Asia–Pacific regional relations. Indeed, as a keen student of history, Xi may be trying to restore the role of China in the contemporary East Asian system to its historical height during the era of the Chinese empire (221BC–1911AD).

Is Xi’s China ready to resume the glory of its imperial predecessor? We may compare China today with China during the early Ming dynasty (1368-1424), which achieved an incomplete regional hegemony in East Asia. By GDP, the economic position of Ming China at the height of its power was stronger than that of the US today. But hegemony is about more than material capabilities—it’s the conjunction of material primacy and social legitimacy; the ability to control important international outcomes and some degree of consent and acceptance from other states in the system.

Early Ming China’s neighbours adopted four principal strategies in their response to and dealings with the Ming imperial court. Ranked from the most to the least cooperative, these four strategies are identification, deference, access, and exit. Almost all of Ming China’s neighbours adopted a strategy of deference, whereby they deferred to, but didn’t necessarily accept as legitimate, imperial China’s hierarchical scheme of foreign relations embodied by the tribute system.

Ming China thus only achieved an incomplete hegemony in East Asia. But that’s hardly surprising: every hegemony is incomplete, even in the case of contemporary US hegemony. Ming China never had to confront a systemic, anti-hegemonic response in the form of, say, a counterbalancing coalition characteristic of modern European politics. On the whole, early Ming China’s material primacy in East Asia was also a Chinese hegemony accepted by its neighbours to varying degrees.

An important criterion for measuring Chinese influence today is the type and nature of regional responses to China’s rise. None of China’s neighbours are developing a strategy of identification, not many states are adopting one of deference either. The main strategy adopted by most states today is in fact access, an instrumental attempt to maintain relationships with China in order to obtain economic benefits from China’s rise. Some are also adopting a strategy of exit by downgrading their relationships with China or by switching to closer relationships with other countries, including China’s archrival, the US.

The contrast with early Ming China is thus clear and striking. Whereas Ming China succeeded in making deference the major regional strategic response to its power, with a nice addition of identification from Korea, today’s China has only achieved the level of an access strategy, and it is in fact struggling with a number of countries even at that level. Moreover, whereas Ming China never had to face a counterbalancing coalition from its neighbours, such balancing is a constant spectre for today’s China. Current Chinese foreign policy leaves much to be desired, and the PRC still has a long way to go before reaching the glory of its imperial predecessor—if indeed it can ever reach such heights.

The problem isn’t with the trajectory of China’s development, which is still largely sound and positive, but rather,  it’s with the ways in which some Chinese policymakers and analysts perceive China’s strengthening position in the international order and how that power should now be used. A palpable sense of triumphalism emerged in some segments of the Chinese policy and intellectual community after the country’s success through the Global Financial Crisis. Yet, as a senior scholar in Beijing pointed out to me, overestimation of China’s power is much more harmful to China’s interests than underestimation. China faces serious economic headwinds and the constraints on Beijing’s foreign policy have consequently tightened over the past few months. President Xi’s foreign policy remains in search of a foundation, a purpose and an effective strategic approach.

Chinese foreign policy has now entered an important stage of multiple changes and adjustments, and is open to be shaped by a variety of domestic and international factors. It will be wise for Chinese leaders to take a long-term historical perspective when considering the potential of Chinese influence in the region and the limits of current approaches. If they are really historically minded, the strategic goals of China’s Asia–Pacific policy should include both a positive and negative goal—a positive goal of encouraging a new kind of deference from regional states appropriate to the norms and conditions of 21st century world politics, and a negative goal of preventing an implicit or explicit counterbalancing coalition forming against China. Whether they can achieve those goals will depend heavily on their strategic wisdom and foresight.

ASPI suggests

Australia’s Defence Minster Kevin Andrews was in India this week, where he met with his Indian counterpart Manohar Parrikar as well as Foreign Minister Sushma Swaraj. Andrews contributed an op-ed to The Hindu and delivered a speech to the Institute for Defence Studies and Analyses (excerpted here). It was in the Q&A session of his address to IDSA that the Defence Minister raised the possibility of the Quad 2.0, which made the front page of The Sydney Morning Herald this morning (and is likely to have been well-received in India—at least in Modi’s office).

Yesterday saw China celebrate its role in the WWII defeat of Japan 70 years ago. As expected, Beijing put on a massive display of military muscle, with 12,000 troops goosestepping through Tiananmen Square alongside a veritable heft of tanks, choppers, drones and missiles. Head over to The Atlantic to check out photos of the parade. Chinese President Xi Jinping took the occasion to announce that military personnel would be cut by 300,000. Over at CSIS Anthony Cordesman and Steven Colley have released for feedback a draft of their 600+ page study on Chinese strategy and military modernisation, which you can access here.

IHS has this week estimated that China’s defence budget would swell to approximately US$260 billion in 2020, which is around double the amount spent by Beijing in 2010. The analysis comes as Japan’s Ministry of Defense requests its biggest defence budget yet, which if approved in December would mark the fourth increase in as many years. Both can be taken as signs that the temperature continues to rise in the Asia–Pacific.

The UK Ministry of Defence is currently soliciting options for their surface fleet of the future. The push is being led by Starpoint, a tech-focused procurement group in the MoD, under the title ‘Dreadnought 2050’—a nod to the UK’s 1906 battleship that completely disrupted naval warfare by outclassing all vessels then in the field.

US President Barack Obama this week secured enough votes to prevent a veto of his nuclear deal with Iran, effectively ensuring that it will pass Congress. While a DefenseOne survey found that only 26% of serving US military and civilian government employees think the deal is good for America, Michael Krepon of Arms Control Wonk thinks the deal is about as good as the US is going to get right now. CSIS’s Jon B. Alterman is thinking beyond the deal.

Bookmark this one for the weekend: A few days back, Brookings published William McCants’ longform piece charting the life and transformation of the man who now goes by the name of Abu Bakr al-Baghdadi, ISIL’s self-proclaimed Caliph. The essay is accompanied by a range of photos, videos, maps and recordings. Beyond that commendable effort, two pieces on the Islamic State caught our eye this week. A piece in The New Yorker looks at life after ISIS, drawing particularly on the experience of some former foreign fighters in Europe; and War on the Rocks asks which devil we need to dance with in order to deal effectively with ISIL.

And what is it about ISIL and Twitter? Beyond the erudite think tank contributions to our understanding of ISIL’s social media strategy, there’s a different, lighter side to the various online efforts to counter the group: first, the conversation between a BuzzFeed journo and an Australian official running the @Fight_DAESH Twitter account; second, a run-down on ISIS-chan, the kawaii anime character waging a meme-and-melon war on ISIL; and finally, @ISIS_karoke, which attaches well-known song lyrics to photos of jihadists. Of course, any effort to counter the potent #catsofjihad hashtag should be commended.

Podcast

With China’s weakening economy bringing more bad news for financial markets across the world this, Colm Quinn and Matt Goodman discuss China’s role in the global economy and its relationship with the US.

Videos

Brandon Valeriano, author of the new book Cyber War versus Cyber Realities, recently skyped-in to Robert Farley’s Foreign Entanglements program over at BloggingHeads.tv. The pair discussed deterrence, resiliency, restraint and the psychology of overhyped cyber fears.

Last weekend marked the 10th anniversary since Hurricane Katrina devastated New Orleans. Vox speaks to some survivors about their experience, and the ABC has a striking set of now-and-then photographs.

20 years ago tomorrow, then-First Lady Hillary Clinton gave her famously forceful ‘Women’s Rights Are Human Rights’ speech in China, against the advice of some in the White House and many in Beijing. Watch it here.

Finally, Donald Trump on ‘China’ (h/t Daniel).

Events

Canberra: What’s there to learn from Australia’s efforts to support peace through the Pacific Islands? Head to the ANU’s College of Asia and The Pacific to find out, as Associate Professor Bob Breen examines our interventions between 1980 and 2006.                       

Melbourne: This Tuesday, the University of Melbourne will host Sir David King, the UK Foreign Secretary’s Special Representative for Climate Change, to discuss a recent report out of Cambridge which recommended climate risks be assessed in the same way as risks to national security, public health or financial stability. See here to access the report, and here to register for the event.

Sydney: The NSW branch of the Australian Institute of International Affairs will soon host Carlyle A. Thayer for a discussion on the implications of China’s land reclamation efforts in the South China Sea. Mark your calendars for 15 September.

ASPI suggests

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All eyes have been on Beijing this week as signs of a slowdown in the Chinese economy have been felt across the globe. With Chinese President Xi Jinping set to visit Washington DC next month, The Washington Post asks how Obama can help to get China’s economic prosperity back on track without making Xi feel vulnerable and weak. For a useful breakdown of how the 14.6% rate of decline in Chinese imports could impact on the rest of the world for another year, check out The Guardian’s interactive graphic. Experts estimate that Australia alone stands to lose $25.2 billion in export sales—the equivalent of 1.7% of our GDP.

As China’s Victory Day parade draws closer, Vice Minister Zhang Ming of the Chinese Foreign Ministry has revealed the guest list for the event. Some notable absentees from the list include US leaders and their Western allies, as well as top-level representation from Brunei, Indonesia, Malaysia, the Philippines and Singapore. Meanwhile, J. Michael Cole at The Interpreter argues that Taiwan’s KMT is making a big mistake by sending its honourary chairman, Lien Chan, to the festivities next week, a move that could potentially shake the faith that young Taiwanese have in their military establishment.

What’s the purpose of US power? As part of its 30th anniversary symposium, The National Interest asked 25 experts their thoughts. William J. Burns, president of the Carnegie Endowment, says that while US global preeminence mightn’t last forever, it’d be a bad idea to bet on its decline any time soon. Read Burns’ response, and others, here.

Refugee crises from Syria to Austria have made headlines this week. Over at Project Syndicate, Anne-Marie Slaughter has looked at the four factors that are leading to US policymakers’ change of heart about implementing a no-fly zone over Syria. While the positive strategic implications of the zone are plenty, it could also serve to alleviate some of the pressures associated with the refugee crisis, which has reached ‘almost biblical proportions’. On a side note, check out CFR’s Global Conflict Tracker for an in-depth look at US engagement in Syria—along with a detailed examination of other hotspots around the world, and they’re likelihood to impact on US interests.

The Economist has also weighed in on what could be done to deal with the enormous influx of Syrians to the EU: ‘let them work’. By keeping migrants in the workplace, both locals and newcomers learn to adjust to the change—a policy that’s been effective in London, New York and Vancouver. After the horrific discovery of the bodies of up to 70 migrants in the back of a truck parked by an Austrian highway this week, pressure will be on the EU to ‘step up and provide protection to more, share responsibility better and show solidarity to other countries and to those most in need’, stated Amnesty International’s Gauri van Gulik.

Heading north, CSIS has released a new publication on Russia’s arctic ambitions, The New Ice Curtain. Looking at the future of bilateral and multilateral relations in the region, the report focuses on Russia’s military modernisation as it aims to maintain the economic viability of its natural resources, as well as the Northern Sea Route.

And finally, North Dakota has become the first state in the US to allow its law enforcement officers to fly drones armed with weapons, ranging from tasers to tear gas. The amended bill was originally designed to prohibit law enforcement officials from weaponising drones, but after an industry lobbying firm got involved, North Dakotan police can now outfit their UAVs with anything deemed ‘non-lethal’.

Podcasts:

The ABC’s The World Today program recently hosted Peter Singer, strategist and senior fellow at the New America Foundation, who gave a brief outline of the vulnerabilities that the US defence system will likely face in the near future (9 mins).

The always-reliable CSIS CogitAsia podcast this week hosted Michael Green for a run down on Japanese Prime Minister Shinzo Abe’s statement on the 70th anniversary of the end of WWII. Take a listen here.

Videos:

The Hon Bill Shorten was the keynote speaker at ASPI’s recent 2015 National Security Dinner. For an overview of the Opposition’s take on the security issues faced by Australia in the near future, watch the video of the event here.

Events:

A big week coming up for Canberrans: next Monday 31 August, Adjunct Associate Professor James Brown of the US Studies Centre will speak at the ANU on Australia’s need to increase its efforts in space to match those of the US’s. Also be sure to mark 1 September in your diaries to catch Sheila A. Smith discuss her new book on how the Japanese government is coping with China’s growing regional influence.

Joining the long list of excellent events run by the University of Sydney’s China Studies Centre, on 10 September, Professor Christine Wong of the University of Melbourne will discuss the structure, organisation and potential reforms of China’s fiscal system.

Our warrior elite: an expanding role for Australian Special Forces

Exercise Diamond Strike 2015

The rise of ISIS allied with the seemingly inevitable mass migration caused by climate change is confronting Australia’s military and intelligence leaders with a devilish conundrum. No one yet has a plan to meet the approaching tumult but one thing is certain: in solving the dilemma the role of our Special Forces will be increasingly central to our future defence and security.

These conclusions were borne upon me during the two years of research and writing that produced my Warrior Elite, the history of our Special Forces incorporating our intelligence agencies just published by Hachette. It involved scores of interviews with the planners behind the political scenes who develop our defence policy.

In the last two decades the military and the intelligence agencies have coalesced into a Special Forces cohort unlike anything that preceded it. And it incorporates an ever increasing proportion of our defence preparedness. The planners know that the technological genie is out of the bottle. Today, an SAS squadron, for example, has at its command a firepower exceeding a WWII battalion. An extraordinary research effort in 47 military and civilian facilities in the US and others in Europe, Japan and China is producing an astonishing array of protective battle suits, advanced weaponry, communications, telemetry and real time HQ support and direction. These are either in use now or on the verge of deployment to the Special Forces of most advanced countries, Australia included. They are the instruments of a radical transformation of military strategy and tactics.

As our Commando regiment increases its battlefield capacity, the SAS in close cooperation with ASIS is expanding its capabilities in potential trouble spots in the region, the Middle East and even the African continent. But here the planners run up against a strategic quandary. Both units are closely affiliated with the US. And while this brings substantial technical advantages, in the bigger picture these are offset by strategic liabilities which defence leaders realise they must overcome.

America’s imperial superpower assertions have created serious complications in Australia’s relations with China and arguably affected the development of open-hearted, neighbourly relations with the largely Muslim nations of Indonesia and Malaysia. Both Indonesia and China are themselves deeply vulnerable to ISIS—Indonesia through its 95% Muslim population and corrupt governance; China because of its 160 million Muslims and their alienation from an unyielding single-party government. Both countries are facing much bigger problems than Australia in controlling their internal threat.

Indeed, were it not for Australia’s enthusiastic embrace of the Five-Eyes alliance which has traditionally been directed against China and Indonesia, among others, it would be perfectly possible to envisage a regional arrangement encompassing Australia and its two most populous neighbours in a cooperative Special Operations counterforce to the jihadists.

Then comes the second strand of the conundrum: climate change. Heavy Weather, an ASPI Special Report published in March 2013, warned that global warming:

 ‘has generated little interest in either the ADF or the Defence Department, [yet] climate change is transforming the conventional roles of security forces. As a threat multiplier, it has the potential to generate and exacerbate destabilising conditions that could reshape the regional security environment.’

That now seems inevitable. And the planners are aware that our response must involve international alliances with the great forces who would underwrite—with force if necessary—the right of nations like Australia to decide (in John Howard’s immortal phrase) ‘who comes to this country and the circumstances in which they come’.

When climate change produces uncontrolled mass migration—the forerunner of which we now see in the Mediterranean—the support and cooperation of regional governments, particularly Indonesia and China, will be essential to any Australian effort to retain its territorial integrity. Yet once again our ‘Five-Eyes’ alliance with the Anglosphere which targets Indonesia and China as potential threats stands as an impediment to the development of the cooperation  and support required.

While the American alliance will no doubt remain in place, it may well be that Australia needs to loosen the ties to its Anglophile past before a genuine regional integration can be secured. An innovative 2014 ASPI/ADF study might well point the way to the future. It proposes the posting of Special Forces liaison officers in Indonesia, Malaysia, Singapore and the Philippines ‘of which Indonesia is the most important’. It recommends increased Special Forces engagement with Southeast Asian nations leading to the establishment of a Special Forces Regional Training Centre in Australia. And in a ground-breaking proposal, it advocates an ‘intensification’ of cooperation with Chinese Special Forces. ‘This would be a confidence-building exercise,’ it says, and would develop through joint humanitarian and military exercises.

In this rearrangement of forces, as our Special Forces add a diplomatic cutting edge to their arsenal, we might well find that our future security—in Paul Keating’s words—is ‘in Asia’ and not ‘from Asia.’

China’s economic outlook: the end of certainty?

China’s economic outlook: the end of boom times?

As everybody now knows, the Chinese economy has a big impact on Australia. Chinese demand for Australian commodities influences our rate of economic growth, the value of our currency and—critically for the government—our tax revenues. Over the past decade, we’ve ridden the roller coaster from the good times to the bad. At the same time, cheap manufactured goods from China have benefited consumers while simultaneously putting pressure on local manufacturers.

Treasury and the Reserve Bank, not to mention the resource sector, are surely keeping a close eye on current developments. There’s a lot at stake; unemployment levels, tax revenues, corporate profits and Australia’s overall prosperity all depend upon the Chinese economy.

China’s long-term economic prospects remain favourable. The latest forecast (paywall) from the Economist Intelligence Unit is for the Chinese economy to overtake the US economy in 2026 and to be 50% larger by 2050. The strategic consequences of this long-term shift in economic weight have been explored many times; my most recent contribution is here. In comparison, far less attention has been paid to the near-turn strategic consequences of China’s economic performance. I think that’s a mistake.

As best I understand from discussions with Chinese counterparts and China experts, the Communist Party’s hold on power rests on two things; nationalism and growth. Whatever remnants of Communist ideology remain have been rendered irrelevant by China’s embrace of capitalism. Of greater contemporary relevance, though of much earlier origin, is the notion of the Mandate of Heaven, which links the historical rise and fall of Chinese dynasties with their ability to deliver competent government. Whereas democratic countries punish incompetent governments at the ballot box, more drastic measures are required in a one-party system—no different from when China was ruled by hereditary dynasties.

Although the current Chinese system seems stable, the Chinese Communist Party (CCP) doesn’t take its position for granted. A regime confident of popular support doesn’t control information and suppress dissent to the extraordinary extent the CCP does. We should have no more confidence in the stability of present arrangements in China than its architects.

What happens if the Chinese economy suffers a serious setback in the next several years and how would the Chinese people respond to a recession that saw the economy contract and unemployment rise to double digits? Perhaps the party would explain the need to tighten belts and people would do what was necessary to get things back in order—think Iceland and Ireland following the 2008 financial crisis. However, even under this favourable scenario, it could take years to put things right; economic output can decline quickly but is painfully slow to re-establish.

A less benign scenario is also possible. The Party could fall back on the remaining pillar of its domestic legitimacy—nationalism. Chinese nationalism is remarkably heartfelt, and in many ways understandable given the country’s diverse achievements. But a strong theme of historical grievance also runs through Chinese nationalism. The ‘century of humiliation’ has been kept alive in Chinese popular culture, resulting in widespread anti-Japanese sentiment and a strong resolve to never again be put upon by external powers.

It’s impossible to foresee how nationalism might manifest in an economically weakened China. But it surely wouldn’t make China easier to deal with over issues such as the South China Sea. More assertive behaviour than what we’ve already experienced is possible, and the prospects for compromise are likely to diminish. Don’t mention Taiwan. Even setting aside strategic matters, an economic downturn could see tensions rise over exchange rates and trade—especially with competing US-led and China-endorsed trade pacts under development.

So what do the economists say? Back in 2011, the IMF forecast future Chinese growth of around 9.5% a year. By April this year the medium-term forecast had been revised down to around 6.3%. That’s hardly the end of the world—most countries would be satisfied with 6% growth—but it’s still a substantial drop. More importantly, it shows that things are happening that the IMF didn’t (or couldn’t) anticipate. That’s not a swipe at the IMF; global macroeconomics in the post-financial crisis era has defied prediction and is even difficult to explain ex-post. Nonetheless, within the broader context of uncertainty, there are reasons to be concerned about what comes next for China.

There’s a risk that, like many that came before, China will fall into the middle-income-trap and see its growth stagnate. The trick will be to capture higher value-add export markets while expanding domestic demand. At the same time, China has to unwind the mountain of debt that’s accumulated in its economy over the past decade. With total debts amounting to 282% of GDP, China is a middle-income economy with an advanced economy’s level of debt. Moreover, because Chinese authorities manipulated bank interest rates to provide artificially cheap lending (at the expense of household savers), borrowers showed little discipline in their investments over the past decade. In a haunting echo of the 2008 financial crisis, almost half of China’s debt (US$9 trillion) is related to real estate.

In theory, it’s possible for China to switch from credit driven growth to more sustainable domestic demand—but it’s hardly assured. As always in economics, there’ll be winners and losers. Reforms are needed to put more money in the hands of Chinese households at the expense of those who currently benefit from cheap credit. Taking from the rich to give to the poor isn’t easy, even in a one-party state like China.