Tag Archive for: India

A new Asian order takes shape

By building up the notion of the Indo-Pacific as a critical region, Shinzo Abe, the late Japanese prime minister, created a strategic framework that presaged the geopolitical and economic integration now taking place across Asia and parts of Africa. As South Asian and Middle Eastern countries merge into West Asia, a new continental order could reshape the global balance of power.

During his first visit to India as prime minister, in August 2007, Abe delivered his seminal ‘Confluence of the two seas’ speech to the Indian parliament. Abe drew his speech title from a book written by the Mughal prince Dara Shikoh in 1655, which explored the commonalities between Islam and Hinduism as neighbouring religious and civilisational constructs. The Pacific and Indian Oceans also share many commonalities, Abe noted. The ‘dynamic coupling’ of these ‘seas of freedom and of prosperity’ would transform not only the Indo-Pacific region but also ‘broader Asia’.

But Abe, who was assassinated last July, had more than just maritime metaphors in mind. His overarching goal was to build the most consequential bilateral relationship in the Indo-Pacific: India and Japan. As one of the first Asian leaders to recognise the global and regional impact of China’s rise, Abe went on a one-man crusade to create a viable new balance of power. By expanding the geopolitical dimensions of the Asia–Pacific region and pushing it westward towards the Indian Ocean, he helped shift the region’s strategic profile.

Abe’s 2007 speech highlighted the intellectual vacuum in Washington at the time. While the United States was at the height of its ill-fated ‘war on terror’ and mired in two protracted, costly wars in Iraq and Afghanistan, Abe sought to redefine the Indo-Pacific on Japan’s terms, as a rival to the China-centric ‘community of common destiny’.

For Abe and his successors, fostering cooperation across the Eurasian and African rimlands through extensive networks of defence and trade ties was the key to realising the vision of a broader Asia. In placing the Indo-Pacific at the heart of this vision, they drew on the insights of the 19th-century American admiral Alfred Mahan and the British naval historian Julian Corbett.

Mahan and Corbett, the pioneers of modern naval strategy, viewed sea power as an essential source of national strength. The 20th-century political scientist Nicholas Spykman emphasised the strategic centrality of the Eurasian rimland, in contrast to Halford Mackinder’s insistence on the centrality of the Eurasian heartland. Together, Mahan’s and Corbett’s writings on sea power and Spykman’s maritime-based approach to geopolitics provided the intellectual foundations for Abe’s broader Asia.

Today, the clearest manifestation of Abe’s Indo-Pacific strategy is the Quadrilateral Security Dialogue, better known as the Quad, which began as a humanitarian initiative when the US, Australia, India and Japan formed a joint relief operation following the deadly tsunami that devastated Indonesia in 2004. After his re-election in 2017, Abe repurposed it as a vehicle for his geopolitical vision.

But the Quad was only the beginning. It has been followed by a series of ‘minilateral’ institutions, including the AUKUS defence pact between Australia, the UK and the US; the US–Australia–Japan Trilateral Strategic Dialogue; trilateral cooperation between Australia, Indonesia and India; and a joint Italy–Japan–UK fighter-jet project. These initiatives, all of which aim to boost security and stability across the Indo-Pacific, reflect the region’s ongoing transformation into a ‘geography of strategies’.

After the Iraq War and Arab Spring pushed Arab states to diversify their alliances and partnerships and decrease their reliance on the US, Asian countries such as China, Japan, India, Indonesia and South Korea rushed to fill the vacuum. The United Arab Emirates and Saudi Arabia, for example, are India’s third– and fourth-largest trading partners, respectively. Japan has become a trusted regional leader in technology, clean energy and space exploration. And South Korea is now a major supplier of technology and arms to the Gulf states and Egypt. Deepening defence and trade ties, together with the Gulf states’ growing clout, have accelerated the Middle East’s integration into the Asian economic sphere.

While Abe sought to offset China’s rising power by redefining the Asia–Pacific region, strategists and intellectuals (including me) have been trying to establish a regional balance of power by expanding the geopolitical definition of the Middle East to include India and other South Asian countries. The Abraham Accords between Israel, the UAE and Bahrain; the Negev Forum; the I2U2 summit comprising India, Israel, the UAE and the US; and the France–UAE–India trilateral framework all point to a fledgling Indo-Abrahamic alliance between India, Israel and the Arab states.

The introduction of India into the Middle East’s political and economic domain is an extension of the geostrategic model Abe championed in his ‘Confluence of the two seas’ speech. With India as the link between the Indo-Pacific and the Indo-Abrahamic countries of West Asia, a continental Asian order is beginning to take shape.

India can play a crucial role in bridging the global divide in artificial intelligence

The recent explosion in automation enabled by artificial intelligence, often dubbed the fourth industrial revolution, is fuelling expectations of a future of ‘phenomenal wealth’, including an economy in which the price of labour will be close to zero. AI is expected to contribute US$15.7 trillion to global GDP by 2030—more than the current economic output of India and China combined.

But will this wealth be created for everyone? Not necessarily.

The International Monetary Fund predicts that AI-enabled automation will severely widen the economic gap between developing and advanced economies. Even within countries, regional disparities in wealth are anticipated to soar as the use of AI technologies remains concentrated in select urban centres. If AI is indeed on track to create a more unequal world, how can global governance institutions address the potential crisis?

The global AI governance regime is taking shape under the influence of two predominant forces: the Organisation for Economic Co-operation and Development (OECD) and the UN Educational, Scientific and Cultural Organisation (UNESCO). Both aspire to play a defining role in shaping international standards and best practices for responsible AI.

The OECD released its recommendation on artificial intelligence in May 2019, while UNESCO released its recommendation on the ethics of artificial intelligence in November 2021. The OECD and UNESCO recommendations are attempts to provide a comprehensive collection of normative prescriptions to establish a global standard for responsible AI. Both intergovernmental agencies are now developing strategies to facilitate implementation, individually as well as through cooperative engagement at the Global Partnership on Artificial Intelligence (GPAI).

Important but not well known, the GPAI was launched in 2020 as a new thematic, multilateral, multi-stakeholder forum with the stated mission to ‘bridge the gap between theory and practice’ on responsible AI. With AI superpowers such as the United States and Canada included in its membership, the OECD serving as its secretariat and UNESCO as observer, GPAI is on the fast track to become a formidable global reference point for responsible AI. But its aspiration to secure global cooperation for trustworthy adoption of AI remains unlikely in the face of a growing global divide in AI between the northern and southern hemispheres.

India, as a fast-emerging AI superpower and the incoming council chair of GPAI, must push for equitable north–south resource-sharing to bridge the divide. This will be critical to ensure consensus-based cooperation on responsible AI and its global adoption.

The absence or underrepresentation of the global south in forums and initiatives on responsible AI is primarily a symptom of its lagging AI adoption rate (with the exception of China and India). This compromises the developing world’s ability to secure a seat at the AI table, despite its significant contribution to the global AI industry.

Only four out of the 29 GPAI member countries are from the global south: Argentina, Brazil, India and Senegal. Representation in the GPAI’s expert working groups (whose members need not be nationals of GPAI members) also remains minuscule. Even at other global forums on AI ethics and governance, the global south, with the exception of India and China, has remained largely absent or underrepresented. For example, only five of the 179 initiatives on AI ethics and governance have their origin in the global south.

Much of the global south continues to score low in government AI readiness, and none of the low- and middle-income countries boast an AI strategy yet. If one leaves out India and China, none of the world’s top 100 AI companies are headquartered in the global south. The region contributes less than 5% to the global AI talent pool.

Fewer than 20 of the world’s 500 fastest (non-distributed) supercomputers on which AI algorithms are developed and tested are collectively hosted in the global south. Most low- and middle-income countries remain deprived of basic digital infrastructure and connectivity, let alone supercomputers. Most countries in the region also continue to lack critical resource capacity to develop adequate regulatory protections against predatory data and AI practices by leading technology powers.

The combination of these factors means the global south not only finds itself locked out of the economic growth stemming from AI adoption but also finds itself in a precarious situation. Its role in the new AI-driven global economic order might get relegated to that of a supplier of unscrupulously sourced commercial datasets, cheap digital labour, dangerously mined rare-earth minerals (like cobalt and lithium) and dual-use AI testbeds. Because of this ‘AI colonialism’, developing countries that don’t have access to these technologies may be left behind, creating a new global divide that reinforces existing power structures and perpetuates economic inequalities.

India, as the incoming GPAI council chair, should work with likeminded partners such as Australia, the US, Japan and France to address the growing north–south AI divide. A coordinated approach would promote inclusive growth in the Indo-Pacific region, which is home to many low- and middle-income countries that could gain from the economic benefits of AI adoption but that also need resources to combat algorithm-driven exploitation.

GPAI’s nascence gives it room to experiment and steer global policy reform to level the playing field for all countries pursuing responsible AI adoption. With its commitment to amplify the voice of the global south, India must leverage its GPAI leadership to steer concrete interventions. This will be critical to facilitating expansion of the global south’s membership of and participation at GPAI.

India should look at scaling the initiative to connect small and medium-sized enterprises to providers of AI solutions through the AI4SME portal, a crucial and promising effort by GPAI to help strengthen and scale business adoption of AI in member countries. The AI4SME network should be expanded to include individual and institutional investors, researchers and professionals, and startup mentors—all of whom continue to be in short supply in the global south.

Initiatives such as the Partnership for Global Infrastructure and Investment could play a critical role in financing the infrastructure requirements for AI development and use in the global south. GPAI should commission research on how such cooperative north–south AI financing arrangements should be structured to tackle the risks of new global digital divides. Research should be expanded to include the need for reforms in international trade, investment and intellectual property regimes to make sure that the pursuit of global innovation and prosperity doesn’t come at the cost of equity.

GPAI’s working group on the future of work should support the design and implementation of data- and AI-centric teacher and faculty development programs at schools and universities in the global south, so that its industrial workforce can become future-ready, globally competitive and less vulnerable to job loss and exploitation. This effort should be complimented by workshops for public administrators in AI-deprived countries to help them develop action strategies for AI adoption. The workshop modules should be modelled on GPAI’s ​and UNESCO’s existing frameworks for educating policymakers on AI adoption.

Global leaders and policymakers, including Indo-Pacific powers such as India and Australia, must recognise and take concerted measures to address the fundamental inequities that continue to persist in how AI is built, deployed, used and traded globally. Only then will the aspiration for inclusive growth and global adoption of responsible AI be taken seriously.

Democracy is no longer Euro-Atlantic

On 18 February, India’s External Affairs Minister S. Jaishankar gave a keynote address at the inaugural Raisina @ Sydney dialogue, organised by ASPI and the Observer Research Foundation. The following is a lightly edited version of his speech.

As we see the world at this time, it’s important we all appreciate that the larger outlook is one of great uncertainty, a lot of unpredictability, with new players, new behaviour. There is the cumulative impact of three years of Covid, the damage that it has done to the global social economic fabric, the year of the Ukraine conflict, the knock-on effects—the fuel, food, fertiliser, trade disruptions; the shortages it has created; the uncertainties it has enhanced—and then take some of the perennial challenges which pre-existed, such as climate.

Climate was a growing concern. What we thought was the future portended has actually happened to us. We are witnessing climate events on an increasingly large, more catastrophic scale. In fact, today in any global risk assessment, I would say building in a climate calculation is very much a part of that.

There are the other concerns—concerns about terrorism, concerns about maritime security. There are also growing concerns about financial sustainability. There are more than 70 countries who have engaged, or are engaging, the International Monetary Fund in terms of stabilising their national finances. And unlike in the near past, many of these are not low-income countries. Some of them are middle-income countries. I think even an optimistic view of the world would be reasonably pessimistic at this point in time.

My second point, flowing from that, is that today there really is an urgent collective task. That is, how to de-risk the global economy. Part of that is exactly the events that I have referred to: overdependence on manufacturing, overdependence on energy, overdependence on services.

How do we create more reliable and resilient supply chains? In a more digital world, how do we ensure at least the minimal trust and transparency? Because the fact is that we cannot be agnostic about data in the manner in which we were mistakenly agnostic about products. Where does my data reside? Who processes it, what do they do with it, how do they extrapolate it? That matters deeply to me. For us to pretend that all nations are the same and it’s none of our business what happens inside, I think that era is now behind us and we must not just accept it. We must actually be aware of it and make plans to deal with this.

This applies also to green technologies. We should not end up in a world where our desire to be greener leads us to be more dependent on a few and therefore more insecure. How do we decentralise? How do we collaborate? How do we diversify? In a sense, how do we democratise the world? Democratise it technologically, democratise it economically?

If I were to pick three words to describe the state of our contemporary world, the number one would be globalisation. Globalisation has worked. It’s had its problems; it’s had its downsides. It’s had, actually, an enormous impact, both the pluses and minuses, on global society. Globalisation actually has helped to create a rebalancing.

The G20, whose presidency India current holds, is proof of that rebalancing. Until 2008, the global leadership, such as it was, was seen as the G7. However, the events of 2008–09 demonstrated that G7 was too narrow. And I would not stop at G20. I use it as a metaphor to underline the point that if you look today at the production and consumption centres of the world, they are vastly different—certainly from what they were in 1945. But I would say almost every decade it’s very useful to actually see a decile chart of who’s up and who’s down and how the balances are shifting there.

That rebalancing is creating an emerging multipolarity. The United States has been the premier power and, for the foreseeable future, will remain the premier power. This is an undeniable factor, as is the rise of China, the share of China in the global economy and global technology and global influence.

However, you’re clearly going to see many more powers who will have more influence on global debates and global outcomes than they did before. Some of them would be sufficiently separated from the rest of the herd, to be seen as a bull, and therefore you will have a multipolarity.

Since Brexit, there’s obviously been a very intense global debate about globalisation, and President Trump’s election intensified that debate. But it’s not an issue of, ‘Is globalisation good or bad?’ You can’t turn it back. It’s there. It’s hardwired into our existence.

The issue is really, what’s the right model of globalisation? Is it a model which is fairer—fairer within societies, fairer between societies? Is it a model where the benefits exceed the vulnerabilities? Because that is today also a very important downside of globalisation. The preferred direction of globalisation that a lot of countries want to see is a key global debate.

In a changing world, obviously there will be new conversations. And among the conversations we are seeing are those of the importance of values, of beliefs, of ideologies. One debate, of course, is that of democratic countries, pluralistic societies and those who are not. But there’s another debate, and it’s a debate within the democratic world, which is really: whose democracy, whose values, whose definition, whose norms?

Here too, there is a transformation of the world, the rebalancing. A lot of it derives from an era of G7 dominance—a very Euro-Atlantic view of what is democracy. Now, the fact that democracy is perceived as a global aspiration is actually because India chose to be a democracy at the time of its independence and because the first country which was decolonising—and it happened to be the largest country which was decolonising—chose a difficult, democratic path.

Despite decades of adversity and limited resources, India stuck to that path when actually other democracies questioned the viability. That, today, is very much at the centre of a debate and a conversation that we must have on democracy. There are practices and beliefs and cultures which are relevant to how democracy is actually executed and improved.

My next point, of course, is the welfare of the world. Here again, the fact that the capacities of some countries are not what they used to be is a very relevant factor. I particularly refer here to the United States.

The big change in the last decade is not that US capacities are relatively less than they used to be. It is that the US is actually getting into a mindset where it’s aware of that limitation and is open to working with like-minded partners to address it—and like-minded partners include countries who are not treaty allies.

In Australia, it’s not a change you will readily realise, because you are a treaty ally. For you, working with the United States is not anything new. It’s part of your history for the last 80 years.

For India, it is a change. Certainly, there have been big changes in our foreign policy, but I would equally stress that there’s been a big change in American thinking. This is not the same United States with which we dealt in the 1960s or 1980s or even frankly in 2005. There is an evolution out there and you can see that evolution on a whole range of issues.

As a result, we have new strategic concepts, new geopolitical theatres, new mechanisms. Obviously the most notable of these on a conceptual level is the Indo-Pacific. At a mechanism level, it is the Quad.

The Quad to me is an enterprise laden with a lot of significance. If you look at it, there’s that Indo-Pacific space—four countries, not geographically contiguous at all, with an enormous amount of sea space and some land space between them, but who have, in different ways, overcome their own past outlook to forge something common in response to a perceived global and regional need. And it’s an India world with which I happen to be associated more closely than most others. I’m still probably the only witness in office of the first effort in 2007. And I’ve seen it at various levels from doing it as a permanent secretary to a foreign minister and now we’re seeing it as a summit level.

It is a development of great consequence. And it’s not just India; I look at the foreign policy of our other Quad partners as well. I think today it has a salience that very few would have predicted perhaps even two or three years ago.

Finally, let me end with a few thoughts on our G20 presidency. It’s obviously an extraordinary opportunity and a great honour. It’s a time when you have a certain convening power and an agenda-shaping opportunity. But it’s also, as I said initially, a particularly difficult juncture of world politics.

The G20 works as a troika. The incoming and the outgoing are associated with the current chair. We had a supportive role when our predecessor chair, Indonesia, was holding that responsibility. We know that last year was a real struggle, that the Ukraine conflict had very strongly polarised the G20. All of us worked very hard to find some kind of common ground on that issue. I believe that we did succeed, finally, at the Bali Summit. An enormous amount of credit is due to Indonesian patience and creativity.

Today, the rest of the world expects the G20 to address its concerns because those 180 countries have real problems, pressing problems, deep concerns, and they think it is for the top 20 economies of the world to show the direction, to come up with answers and, at the very least, to be cognisant of their concerns.

Our hope is that we are able to steer the G20 in the direction to undertake the responsibility and remit of economic growth and global development. We are not just feeling the vibes from the rest of the world. We actually did it as a practical, empirical exercise. In the month of January, we consulted 123 countries at the level of prime minister and cabinet ministers. We have a good sense today by asking the world, ‘Here we are with this responsibility. What is uppermost in your mind? What is your most pressing concern and what can we do about it?’

From what I can see, the Australian view is very much aligned with the thinking which I have put forward. For me, this relationship is exceptionally important, and I can only underline that by the frequency of my visits. It makes a big difference in the G20, in the Quad, bilaterally, and regionally as well.

I’m coming here after spending three days in Fiji. Do bear in mind that the India that I represent today is also an India whose influence and interest and footprint are growing in the world. We feel we can be of utility and support in regions which may not be that proximate to us. That too has been part of my conversations in Australia.

Policy, Guns and Money: India’s foreign policy, information warfare and Australia–Netherlands cooperation

In this episode, ASPI’s Baani Grewal speaks to Ashok Malik, partner and chair of the India Practice at The Asia Group and ASPI visiting fellow. They discuss India’s foreign policy under Prime Minister Narendra Modi, including its relationships with the West and with China and Russian, and developments in the Australia–India relationship, including why it’s significant that the Raisina Dialogue is coming to Sydney.

The information domain is critical in warfare, and given the rapid developments of technology, it is increasingly weaponised by adversaries. ASPI’s Jake Wallis asks Janis Sarts, director of the NATO Strategic Communications Centre of Excellence, how NATO and like-minded countries such as Australia are faring in combating disinformation, and whether there is a model for deterrence in the information domain.

Finally, ASPI’s Bec Shrimpton speaks to Netherlands Vice Minister for Foreign Affairs Marcel de Vink about geopolitics and Australia–Netherlands collaboration. They discuss the global implications of Russia’s war on Ukraine, NATO’s approach to international security and the need to develop social resilience.

The Quad’s role in tech diplomacy

In 1943, Thomas Watson, the chair of IBM, famously said, ‘I think there is a world market for maybe five computers.’ Senior engineers at the corporation dismissed the future use of microchips.

Scepticism of emerging technologies is not uncommon and reflects a fear or misunderstanding of the new and unknown. But we are now on the cusp of a range of next-generation technologies that will shape our daily lives and add another dimension to shaping geostrategic settings.

There are increasing concerns for citizenry around data and information protection, cybersecurity, job security from the rise of artificial intelligence and so on. These developments are occurring at a rapid rate. According to a report by EY, ‘By 2030, the world will be entering the 6G era; an intelligently autonomous, sensory, massively distributed but highly networked world that blends our physical, digital and human systems.’

This has not only potential personal consequences, but also enormous geostrategic and economic implications. For defence planners, those effects may prove as critical as traditional military power projection. Technology is also driving innovation in industry not seen for decades, and the private sector needs to understand where its efforts are best placed given the strategic consequences.

The Quad partnership, comprising Australia, India, Japan and the US, has prioritised supporting and guiding this technological evolution to buttress investment in projects and technology consistent with its intent to maintain a free and open Indo-Pacific. This will require a concerted and coordinated effort between governments, industry, private capital partners and civil society.

Achieving the Quad’s goals will also require deepening and strengthening people-to-people links, building trusted professional networks, making policy and regulatory adjustments, and facilitating better information sharing. As a first step to developing a roadmap for cooperation, ASPI hosted the inaugural Quad Technology Business and Investment Forum in Sydney in December 2022, supported by the Australian Department of Home Affairs. The forum will become an annual Quad event and report directly to the Quad Critical and Emerging Technology Working Group.

The scope of the working group is, so far, fairly modest. It encourages a statement of principles on technology design, development and use; coordination on technology standards; cooperation on telecommunications deployment; diversification of suppliers; cooperation to monitor trends; and dialogues on critical technology supply chains. While discussions between government, the private sector and civil society on these issues is still at an embryonic stage, new links are being forged at conferences like the forum.

The future prosperity of nations will be determined by their ability to harness emerging technologies, particularly AI for automation and data analysis, and quantum computing. Quantum computing alone has the potential to revolutionise society by solving complex problems in seconds that would take the fastest supercomputer thousands of years.

Technology advancements over the past few decades now underpin national security and drive economic prosperity by creating new jobs, securing competitive manufacturing, improving our health and vaccination outcomes, increasing agricultural productivity, modernising our infrastructure and communications, enabling our energy transition, strengthening our defence forces and, most fundamental of all, preserving our democracy.

The challenge for the Quad is how best to coordinate investment between government and the private sector, and then coordinate that investment across the Indo-Pacific. Quad nations are in different parts of this technological evolution and have varying levels of existing cooperation.

The US and Australia are generally comfortable working together on technology development, whereas Japan and India have traditionally been more cautious about collaboration. Through a range of meetings and information-sharing exercises, the Quad is working to break down barriers and help governments better understand how differences can be harnessed as strengths rather than weaknesses.

While the US continues to lead development and innovation in AI and quantum computing, China is investing heavily in the sector to counter the emerging strategic competition between Quad members and their partners. US President Joe Biden is determined to maintain America’s strategic advantage in the emerging technology sector, especially AI, and has introduced a range of export restrictions as well as enhancing tech partnerships with trusted allies and friends, including Australia, Japan and India.

Japan’s Prime Minister Fumio Kishida has also committed his government to ‘think about national security from a variety of perspectives, not just force’. The Kishida administration looks set to take this to new levels in response to what former national security adviser Kitamura Shigeru has referred to as a ‘tectonic shift’ in the development and application of new technologies.

Keio University professor and special adviser to former prime minister Shinzo Abe (the father of the Quad) Tomohiko Taniguchi highlights that ‘investment in emerging technologies, such as AI and quantum computing, is becoming more critical for Japan, as is the need to collaborate with like-minded nations, including the Quad member nations’.

The Indian government has signalled that it will leverage hosting the G20 this year to help promote the need for a collaborative regulatory approach to and cooperation on emerging technologies. India is ranked eighth in terms of private investment in AI behind Europe, the US and China. However, a recent report published by Deloitte suggests that most Indian businesses plan to increase their AI investments.

The Australian government will focus on its strengths such as research and development, and training and education. It will also seek to take a leading role in the Quad emerging technologies architecture to ensure that critical technologies and their applications embody the principles that define Quad member nations’ values and allow them to uphold the rule of law and human rights.

As agreed by the Quad members in 2021, ‘a free, open, inclusive, and resilient Indo-Pacific requires that critical and emerging technology is governed and operates according to shared interests and values’. This is no small task, and governments, industry and investors all have a role to play.

Governments often find themselves on the back foot when it comes to innovation, especially when market competition and consumer protection are tested by technological growth. But governments are critical to the development of new technologies through their support for initiatives and the creation of conducive environments for innovation and investment. Governments also set regulatory frameworks, assist with seed funding support for emerging technologies and facilitate private capital investment through public–private partnership arrangements and investment match-funding.

The private sector is essential in bringing new technologies to the market. It is the private sector that must identify, evaluate and carry forward the best ideas to commercial outcomes. Businesses, entrepreneurs and investors turn innovations into the products and companies that change the world.

Innovation is also critical for the private sector in terms of competitiveness, and is the key to success for private businesses, helping to cut costs, improve products, open new markets, and improve digital fluency and skills development.

Finally, there is the capital required to take start-up emerging technologies and scale them up at the rate required for large government-endorsed programs and initiatives. Private-sector capital will be central to this success as governments won’t have the money to fund everything. However, venture capitalist firms need support to help identify the best areas for investment and incentives to invest through government funding support.

Perhaps a first step to help align the three sectors is the development of an investor prospectus for emerging technology that highlights investment opportunities across the Quad and then develops a mechanism for collaborative investment. This is just one practical solution to help build co-created, co-designed and co-funded Quad initiatives.

Having a bold vision of this future will help companies streamline investments today and chart a transformation roadmap for tomorrow.

Few countries have the resources to be competitive in all technologies that might be critical to their national interest. Some technology cooperation is easier—and has a longer history—in bilateral or trilateral settings. It will take astute policymakers to marry together our trade agenda with domestic industry and innovation policy—but things are moving quickly and the time for action is now.

Latest border clash shows China is continuing its calculated aggression towards India

In a confrontation on 9 December, a sizeable detachment of Chinese troops attempted to breach the razorwired Line of Actual Control (LAC) in the Yangtse area of the Tawang sector in India’s northeastern state of Arunachal Pradesh. The intruders were beaten back with sticks and stones by Indian Army soldiers patrolling the area.

China’s shadow looms large over India, with cross-border threats surging since Xi Jinping came to power in 2013. The 69-year-old leader’s ascendance to a historic third five-year presidential term has daunted India.

New Delhi has been unable to resolve the border impasse since May 2020, when People’s Liberation Army (PLA) troops breached the LAC, clashed with Indian soldiers and overran vast tracts of the eastern sector of the border Union Territory of Ladakh. Xi’s troops also entered the Demchok and Chumar areas of Ladakh while he met Indian Prime Minister Narendra Modi in India in 2014. It is profoundly offensive for a world leader to see his country under assault while he is hosting the attacker’s leader on a state visit.

India fears China is ‘salami slicing’—scything through Indian territory with the intent of redrawing the LAC. Chinese troops have also opened additional fronts along the border with India’s Himalayan states of Uttarakhand and Sikkim.

The Yangtse clash may have been part of a wider design to unfold in days to come. This face-off was likely set up by senior Chinese commanders, since members of the PLA are extremely regimented and don’t operate without orders.

While the skirmish was brief, soldiers were wounded on both the sides. Twenty Indian soldiers were hurt and at least six of them needed to be airlifted for treatment to Guwahati in the adjoining state of Assam. The number of Chinese troops injured is believed to be higher. This was the first physical combat between the two sides since the deadly clash in the Galwan Valley in eastern Ladakh in June 2020 that took a toll of 20 Indian soldiers.

The Indian government, and the military, have largely withheld information on the alarming developments at the LAC, the Himalayan frontier dividing the nuclear-armed neighbours. Members of the parliamentary opposition and the media were branded ‘anti-national’ when they probed for answers.

Under pressure, Defence Minister Rajnath Singh told parliament on Tuesday that three infantry units of the Indian Army had ‘bravely stopped’ the Chinese army from transgressing the LAC and unilaterally changing its status quo. ‘I want to assure the House that no Indian soldier was killed or severely injured,’ he said. ‘I also assure the House that our Army can defend the country’s territorial integrity and is ready to tackle any transgression.’ He concluded, ‘I firmly believe the House will support the bravery and courage of our armed forces.’

Despite three border agreements—in 1993, 1996 and 2013—on maintaining peace and stability along the LAC, Beijing has consistently disputed the demarcations.

China has historically claimed the entire 83,743 square kilometres of Arunachal Pradesh at the eastern fringe of the LAC. In January 2021, Chinese workers backed by PLA troops crossed into the state to construct a village along its border with Tibet. India’s Ministry of External Affairs viewed China’s strategy of building civilian settlements in disputed frontier areas as part of its attempts to buttress its claims to the region. Beijing rebuffed this criticism, maintaining that the encroachment was ‘beyond reproach’ because it has never recognised Arunachal, which it calls Zangnan, or South Tibet.

The last gunshots were fired in anger on the India–China frontier in 1975 when four Indian paramilitary soldiers were shot dead in an ambush by the PLA at Tulung La in Arunachal Pradesh.

Tawang enshrines the Tawang Monastery, which is sacred to the Tibetans; it was founded by the Merak Lama Lodre Gyatso in 1681 in accordance with the wishes of the fifth Dalai Lama. Tibet controlled Tawang until 1914, when it entered into an agreement with British India that delineated the boundary in this region along what became known as the McMahon Line. While China never recognised the agreement, the Tibetans too regarded their pact with the British as being conditional on Beijing’s acceptance and deemed the McMahon Line ‘invalid’ when the Chinese refused to acquiesce.

People in India have been looking to their leadership to resolve the threat of war. Many are concerned that the government has made no resolute response even as India stands to forfeit a vast area, its soldiers are slain and maimed, and it is being outmanoeuvred by China militarily, diplomatically and politically.

New Delhi’s response will ultimately determine its standing in the global community and in its alliances.

Time for a ‘Radford–Collins’ agreement for the Quad?

After a false start 15 years ago, the annual Malabar naval exercise has become a key strategic development for the Quadrilateral Security Dialogue partners, the United States, India, Japan and Australia.

Warships from the four nations have just concluded the 26th iteration of Exercise Malabar, which began under an agreement between the Indian hosts and the US in 1992. The original aim was to improve interoperability between the US and Indian navies, and for many years the exercise involved few ships.

In 2007, warships from the US, India, Japan and Australia took part, but that aroused anger in Beijing, which sent each of the four countries a diplomatic note, or démarche, criticising what it saw as a developing security relationship.

Australia didn’t take part in the Malabar exercise again until 2020.

Malabar’s expansion reflects the growing ties among the Quad navies. The Quad’s announcement of the Indo-Pacific Partnership for Maritime Domain Awareness is another welcome step, but more is needed to formalise a Quad maritime security arrangement. The new partnership is useful because it will give regional nations access to satellite tracking data to monitor ships and enable a common operating picture. However, it needs to be complemented by an initiative that clearly outlines areas of maritime responsibility in the event of conflict in the Taiwan Strait or elsewhere. An updated Radford–Collins arrangement involving India and Japan as partners offers a potential solution.

Named after the then commander-in-chief of the US Pacific Fleet, Admiral Arthur Radford, and Australia’s then chief of naval staff, Rear Admiral John Collins, who negotiated it, the Radford–Collins agreement was reached in 1951 to establish clear areas of maritime responsibility between the US and Australian navies in the event of war. The agreement also divided up responsibility for ensuring the free flow of maritime trade. The zones were based on the Southwest Pacific and the Anglo–New Zealand–Australian–Malaya, or ANZAM, area, which stretched from the eastern Indian Ocean to New Zealand and across the Southern Ocean to the New Guinea area from south to north. Radford–Collins remains a useful tool for coordinating areas of maritime influence, but new challenges and partners necessitate an update of the arrangement.

While Radford–Collins was signed during an era that shared some similarities with the current period, the emergence of China as a major maritime force and the evolving Sino-Russia axis has altered the balance of power in the region. The continued growth of the Peoples Liberation Army Navy’s surface and submarine fleets and long-range hypersonic missiles will make defending maritime trade more difficult in war time. Beijing’s ongoing use of aggressive maritime grey-zone tactics in the South China Sea signals a willingness to use naval power to achieve its geostrategic goals.

The PLA Navy currently has 355 platforms, including aircraft carriers, surface combatants and long-range submarines. While it is likely to initially concentrate most of its forces in the first island chain close to the Chinese mainland, it would be capable of attacking shipping lanes with long-range missiles or submarines. Any significant interruption to Australia’s supply chains and exports would have devastating consequences. The potential effects of a maritime blockade are highlighted by the disastrous economic impacts of Russia’s blockade of Ukraine. Maritime coordination with Indian and Japanese forces alongside the US will be required to help defend the Indo-Pacific shipping lanes should they be threatened.

The recent increase in the naval presence of the UK and France in the Indo-Pacific is, to a large degree, intended to protect regional shipping lanes in the face of increased Chinese grey-zone activities in the South China Sea. Consequently, the Five Power Defence Arrangements may bring renewed importance and relevance to Radford–Collins. The FPDA has also remained useful in encouraging multilateral naval exercises, as has the Quad.

The development the Quad is a welcome step in the protection of the global rules-based order. All four powers are committed to ensuring freedom of navigation through international waters and that commerce flows are free from coercive forces. It remains a strategic forum, but the Quad has also been useful in encouraging greater partner cooperation as highlighted by the Malabar exercises.

Despite improved collaboration, the Quad partners are spread across two large oceans and have divergent views on some security issues. This includes some Indian divisions over the long-term implications of AUKUS. However, major Indian defence think tanks have produced mostly favourable pieces on AUKUS, as have Japanese think tanks. While there are some national differences, there’s a joint commitment within the Quad to protect the global rules-based order, and a multilateral Radford–Collins agreement could support its mission. Ultimately, the Quad offers an opportunity for regular joint ‘naval cooperation and guidance for shipping’ operations, which can help boost cooperation in protecting the merchant marine.

The Australian and US navies are already regular participants in multilateral merchant marine protection exercises like the Bell Buoy series. There are also useful international forums like the Pacific Indian Ocean Shipping Working Group. Japan and India do not participate in the Bell Buoy exercises or the working group.

The increased importance of the Malabar exercise and the Quad’s establishment of the Indo-Pacific Partnership for Maritime Domain Awareness signal a clear desire to collaborate in the defence of regional shipping lanes against the possibility of Chinese aggression. Radford–Collins was created to establish lines of maritime responsibility, cooperation and communication in the face of a common threat. By formulating a modernised, Quad version of the agreement, the partners can clearly delineate areas of maritime responsibility and formalise common naval communications and procedures in the event of war. Ultimately, a new Radford–Collins agreement would help Australia and its allies refine their joint administrative, capability and operational planning in the Indo-Pacific, bringing a degree of certainty during such uncertain times.

Policy, Guns and Money: India’s foreign policy and climate change in defence planning

In this episode, ASPI’s Fergus Hanson speaks to Richard Rossow, a senior adviser and Wadhwani Chair in US–India Policy Studies at the Center for Strategic and International Studies, about the trajectory of the US–India relationship and lessons for Canberra in how Washington and New Delhi have approached their relationship. They also discuss India’s domestic and foreign policy priorities, including on data security.

Next, ASPI’s Baani Grewal talks with India foreign policy analysts Akriti Vasudeva and Teesta Prakash. Their conversation covers the US–India relationship, India–Australia ties, the potential of the Quad and the priorities for these relationships given the rapidly changing strategic environment.

With COP27 entering its second week, climate policies and addressing climate challenges are in focus for governments around the world. ASPI’s Robert Glasser speaks to Professor Joshua Busby from the University of Texas at Austin about climate and security, how the US Department of Defense is factoring climate change into its planning, and some lessons for the Australian government.

India–Australia defence ties grow in the face of rising strategic challenges

There has been a discernible upturn in India–Australia defence ties in recent months, with increased interaction between the two maritime nations through bilateral and multilateral military exercises.

The maritime waters between Indonesia and northern Australia are an area of mutual interest to both countries, being a gateway to the Indian Ocean region. These drills have reaffirmed the shared objectives of an open, inclusive and rules-based Indo-Pacific region, an oblique reference to the threat of Chinese expansionism that has raised strategic challenges in the region.

Several such exercises have taken place in the wake of the June meeting in New Delhi between India’s Defence Minister Rajnath Singh and his Australian counterpart, Richard Marles. Defence and security are the main drivers of the India–Australia comprehensive strategic partnership, based on ‘mutual trust and understanding, shared values, and common interests, of democracy and rule of law’.

During a series of high-level visits in April, the chiefs of the Australian army and navy visited India, leading Australia’s high commissioner to India, Barry O’Farrell, to remark that joint defence activities had experienced a ‘near four-fold increase’ since 2014.

Within a month of the defence ministers’ summit, the Indian Navy and Royal Australian Navy reasserted their strong navy-to-navy links and interoperability by conducting their Maritime Partnership Exercise off Perth on 19 and 20 August. Indian-built offshore patrol vessel INS Sumedha joined HMAS Anzac to conduct cross-deck landing of helicopters, tactical manoeuvres and a farewell steam-past.

The exercise was also in consonance with the joint guidance provided by the chiefs of the two countries’ navies in August 2021.

From 19 August to 8 September, more than 100 personnel from the Indian Air Force, flying four Russian Sukhoi-30MKI fighters and two Boeing C-17 Globemaster military-transport aircraft, were among 2,500 military personnel from 17 air forces that participated in Exercise Pitch Black 2022, the Royal Australian Air Force’s capstone biennial engagement with key strategic partners. Back after a hiatus of four years on account of Covid-19, this mammoth exercise was conducted from the RAAF bases at Darwin, Tindal and Amberley, and featured a range of realistic and simulated complex aerial scenarios involving large formations.

Four days after the end of Pitch Black, the RAN, supported by the RAAF, hosted its other flagship biennial exercise, Kakadu 2022, ashore in Darwin and in the waters off northern Australia. The 12-day exercise has grown in size and complexity since its inception in 1993, and this time involved ships and maritime aircraft from 14 navies. India participated with a Boeing P-8I maritime patrol and reconnaissance aircraft, and the indigenously designed and built 6,000-tonne guided-missile stealth frigate, INS Satpura.

‘Exercise Kakadu is our navy’s most significant international engagement activity and is vital for building relationships between participating countries,’ said RAN chief Vice Admiral Mark Hammond.

In April, P-8 aircraft from both countries conducted coordinated anti-submarine warfare and surface surveillance operations. A team from the Indian Navy’s maritime patrol squadron, Albatross, engaged with its counterparts from the RAAF’s 92 Wing.

This engagement coincided with the 14th India–Australia navy-to-navy staff talks over three days, where the deputy chief of the RAN, Rear Admiral Christopher Smith, and Rear Admiral J. Singh, an assistant chief of India’s naval staff, acknowledged the two countries’ growing cooperation amid emerging challenges on the maritime front. The talks were held under the framework of the 2021 joint guidance for the India–Australia navy-to-navy relationship, the first such document signed by the Indian Navy with any country.

That was also the time the two nations held the fourth iteration of their biennial naval exercise AUSINDEX in Australia. Commenced in 2015, the exercise has grown in complexity and spans complex surface, subsurface and air operations between ships, submarines, helicopters and long-range maritime patrol aircraft of both countries.

Australia has been a late entrant to the annual Malabar exercise, which had started in 1992 as a bilateral drill between the Indian and US navies in the Indian Ocean. Japan became a permanent member in 2015 and Australia, in 2020, making Malabar a pivotal operation involving the four Quad countries.

In September, the Quad foreign ministers reaffirmed their commitment to oppose any unilateral actions that seek to change the status quo in the Indo-Pacific.

These four powerful navies will be holding Malabar exercises off Yokosuka in Japan from 8 to 18 November. The US Navy has a base in Yokosuka that is currently the home port to Carrier Strike Group 5, led by USS Ronald Reagan. The advanced exercises will involve live firing and war-gaming manoeuvres. The RAN participated once in Malabar in the past, in 2007, when the Republic of Singapore Navy also participated.

And in its first large-scale multilateral exercise this year, the RAN deployed HMAS Arunta to the 11th edition of India’s largest multinational exercise, Milan 2022, which was themed ‘Camaraderie, cohesion and collaboration’. The biennial exercise was held in March in the port of Visakhapatnam and in the Bay of Bengal, and drew together 26 ships, one submarine and 21 aircraft from 16 navies from across the Indo-Pacific.

Visakhapatnam will be a port of call—at the end of this month—for Indo-Pacific Endeavour 2022, a key regional engagement activity of Australia that runs across Southeast Asia and the northeast Indian Ocean from September to November. These engagements with a record 14 countries will be supported by a Maritime Task Unit of RAN ships and embarked Australian Army members, as well as RAAF air mobility aircraft for fly-in, fly-out engagements, totalling 1,800 personnel, five ships and 11 helicopters. The centrepiece of the task group will be the Canberra-class landing helicopter dock HMAS Adelaide.

Indo-Pacific Endeavour began in 2017 as an annual activity to deliver on the promise of the 2016 defence white paper to strengthen Australia’s engagement and partnerships with regional security forces.

There will also shortly be a meeting in Australia of the India–Australia Joint Working Group on Defence Research and Materiel Cooperation. The group will probe further opportunities for bilateral industrial cooperation to increase the resilience of supply chains and deliver capabilities to their respective defence forces. India will also be offering niche opportunities to Australian defence firms.

Both partner countries have also set up programs for facilitating the exchange of young officers from their armed forces for joint training and military-to-military exposure.

China’s ‘spy ship’ visit to Sri Lanka symbolises looming Sino-Indian maritime competition

In September 2014, Sri Lanka stirred the embers of conflict in the Indian Ocean region by allowing Chinese naval vessels to dock at one of its ports.

At the time, India took issue with the visit, citing a 1987 accord with Sri Lanka that precluded the two countries from engaging in activities prejudicial to one another’s security. Sri Lanka’s navy dispelled India’s anxiety by underscoring the visit’s normality. The port call was ‘nothing unusual’, one Sri Lankan military official said; 230 other warships had pulled into Colombo since 2010.

Five years on, Sri Lanka’s ports have further ignited Sino-Indian maritime competition in the region. On 16 August, a Chinese ballistic missile and satellite tracking and survey ship, Yuan Wang 5, called at Sri Lanka’s Hambantota port for a five-day replenishment. Sri Lankan military officials brushed off insinuations that the visit signalled their cosying up to China. The visit was approved based on ‘standard procedure’, they said. But nothing about the Yuan Wang 5 visit was standard—not even the procedure.

In late July, Colombo originally greenlighted the Yuan Wang 5 visit from August 11 to 17, expecting minimal blowback. But much has changed since 2014. China is now a great naval power that has achieved ‘near seas’ control and is shoring up its ‘far seas’ efforts. China finished building Hambantota port in 2017 and then gained control of it in 2018 when Sri Lanka couldn’t repay Chinese loans. Sri Lanka is vulnerable to China—its largest creditor—after defaulting on its debt earlier this year.

Recognising this strategic shift, New Delhi and Washington raised concerns with Colombo about the visit. They feared China would offer debt relief in exchange for turning Hambantota port into a Chinese naval base (known as ‘debt-trap diplomacy’) and that the Yuan Wang 5’s three long-range satellite dishes could ‘spy’ on Indian defence installations or missile launches.

Sri Lanka waffled under international pressure, asking China to defer the visit ‘until further consultations’. China warned Sri Lanka that scuttling the visit would affect future debt and trade deals. In the end, Sri Lanka tried pleasing everyone. The Yuan Wang 5 could visit, as long as it turned off its intelligence collection and turned on its automatic identification system when operating in Sri Lankan waters.

The ship’s visit exemplified the growing Sino-Indian maritime competition and China’s blueprint for familiarising itself with, normalising its presence in, and testing the limits of its influence in the Indian Ocean region.

China’s Indian Ocean strategy is based on the ‘Malaccan dilemma’, a term coined by President Hu Jintao in 2003 to describe China’s undue reliance on trade routes that pass through the Malacca Straits. Hu feared that other countries (that is, the US and India) could strangle China in a conflict through blockades and ‘commerce-raiding’.

Hu’s anxiety was half right. China’s vital economic interests are tied up in this choke point. An estimated 40% of Chinese trade flows through the Malacca Strait. But blockade anxiety is a bit far-fetched. No one wins a conflict designed to disrupt critical sea lines of communications, especially trade kingpins like the US and India. Despite this unfounded fear, China remains concerned—and it shows.

Tell-tale signs include China’s increased access to military bases in Djibouti, the Seychelles and Oman, and its port development projects in Cambodia, Sri Lanka, Pakistan and Bangladesh. Since 2008, the Chinese navy has also deployed more than 40 naval escort taskforces to the Gulf of Aden to fight piracy. But piracy in the Horn of Africa has dissipated since 2016. So why is China still sending these taskforces?

The tyranny of distance and size precludes Chinese ‘far seas’ control in the Indian Ocean region. But China doesn’t need control to allay its fears, just deterrence. Expeditionary deployments, ‘far seas’ operations and foreign military access enable China to refine its blue-water proficiency, normalise its presence in the region and establish partnerships with smaller nations that can join China’s network of naval resupply outposts. These efforts can then provide ‘reliable security support’ for China’s overseas interests, prevent foreign ‘far seas’ interference, and even threaten another country’s trade in wartime.

The Yuan Wang 5 visit was not only a catalyst, but also a microcosm of this competition as Beijing and New Delhi vie for influence and leverage in Sri Lanka. China has lent Sri Lanka more than US$12 billion for infrastructure investments, which makes up nearly 20% of Sri Lanka’s foreign debt. Ending Sri Lanka’s economic crisis also depends on restructuring Chinese debt. When Sri Lanka defaulted on its debt earlier this year—and China refused to provide more aid—India filled the void with US$4 billion in loans for fuel and food. A day before the Yuan Wang 5 arrived, India also fortuitously gifted a Dornier maritime patrol aircraft to Sri Lanka.

Sri Lankan President Ranil Wickremesinghe believes his country has ‘kept out of the power rivalry’ in the region but will soon find it ‘more difficult to maintain a balance’. If China demands more port calls and military access at Sri Lanka, Colombo will have no option but accommodation. China’s debt is a ‘noose around our neck’, says one former Sri Lankan diplomat.

Without resorting to predatory economic practices, India can still out-influence China in Sri Lanka and the Indian Ocean region. It starts with the Quad alliance giving India the resources to develop or procure reconnaissance platforms to improve its maritime domain awareness, more small warships to match China ship for ship, and cheaper (but effective) asymmetric weapons. It also includes providing viable alternatives to China’s regional infrastructure projects, port visits and access arrangements.

If India can’t counter China short of war, the Indian Ocean region will devolve (at best) into arms races and territorial incursions while smaller nations caught in the crosshairs (like Sri Lanka) become battlefields of influence. That should be avoided. To quote the African proverb: ‘When elephants fight, it is the grass that suffers.’