Archive for July, 2018

Another op-ed for the South China Morning Post, on a not dissimilar topic to the last two, focusing on the Belt and Road Initiative and its consequences on the ground. It has gotten a bit of attention on Twitter, and the point is to try to challenge the rather empty policy responses we hear about BRI for the most part.

Beyond this op-edding in the SCMP, have also been delinquent in updating media commentary. Since this was last done, I spoke to the Telegraph about a Pakistani Taliban video, the Independent about the fact that Abu Bakr al Baghdadi’s son was killed fighting in Syria, to the Telegraph again about the worrying set of arrests in Germany that included someone who had managed to make Ricin, to Huffington Post about the fact that al Shabaab issued an edict about banning plastic bags, and to the Independent again about ISIS telling its followers to beware of fake social media accounts. Beyond this, The Conversation posted a podcast which included a longer conversation I had had with them about lone actor terrorism as part of the preparation for making this comic strip about the phenomenon.

Why developing countries can’t resist joining China’s massive infrastructure plan

Raffaello Pantucci writes that Beijing’s offer of investment and a connection to a regional ‘balancing force’ is tough to pass up for poor nations with few options

PUBLISHED : Saturday, 07 July, 2018, 10:02pm
UPDATED : Saturday, 07 July, 2018, 10:05pm

COMMENTS: 44 

Raffaello Pantucci

6 Jul 2018

There is an understandable trepidation about China’s Belt and Road Initiative. The problem is, there is a tendency to analyse it solely through the lens of China the adversary, forgetting that numerous countries along the way are affected by this foreign policy initiative and their calculation around China has to be very different.

For them, China the adversary is a second-order issue, often trumped by the necessity of seeking either inward investment or a balancer against other regional powers.

If the world wants to find a way of reacting, countering or engaging with the Belt and Road, this is the chief element to bear in mind. Simply rejecting, shouting about or expecting people to reject China’s massive infrastructure plan will have little impact on Beijing’s foreign policy concept.

China has made a dramatic leap in a few generations. From a developing power facing domestic poverty (which still affects substantial parts of the country), Beijing has leapfrogged its way into globe-straddling gianthood, led by a one-party government which talks in dramatic terms about becoming one of the major powers on the planet.

Seen through the lens of this transformation, the Belt and Road Initiative is interpreted as a way for Beijing to restore itself to its rightful place at the centre of the world, with economic corridors emanating from it in every direction.

And there is some truth to this. The impetus behind the Belt and Road is restoring China to its pre-eminent place on the Eurasian continent. But to simply conclude that this effect is the only one, is to reduce the impact for those along the way.

The Belt and Road cuts across vast swathes of underdeveloped Eurasia and beyond, often through countries which have not benefited in the same way from the prosperity in the West. Their governments have not always been able to match China’s breakneck speed of development, and are instead burdened with fundamental domestic issues which impede progress.

Along comes China, offering loans, companies that can deliver projects rapidly and few value judgments about the governance of the countries in question.

There may be some political pressures, but these initially are kept light, and are often focused on matters that are of relatively marginal concern to the countries at hand: recognition of Taiwan, or willingness to back China in the United Nations.

Over time, this dynamic can change. As countries find themselves unable to repay debt, they will accumulate more.

For politicians there is a deep attraction to an outside power that brings jobs, infrastructure and investment. This is an understandable impulse.

If countries are not receiving this investment from elsewhere, or are finding themselves having to fulfil difficult governance requirements to get loans, it is understandable that they will choose the easy option.

Having got themselves into this hole, finding that their predatory lender is leaning with ever greater intensity on them is familiar to anyone who has found themselves taking on more debt than they can handle from the bank.

What is the lesson here? And what is the policy response from the West?

First, there is clearly a need to call out China’s rhetoric of creating a community of shared destiny.

Beijing cannot necessarily be held responsible for bad choices made by other governments, but there can be no doubt that by letting countries take on too heavy loans that ultimately require them to get bailed out by international financial institutions, China is not helping the international order.

Rather, it is taking money from international institutions which help cover debts incurred by countries that use China’s companies to build their infrastructure. This is reducing the volume of money on the planet to help it develop: hardly the action of a globally responsible stakeholder.

Underdeveloped parts of the world need investment. In the absence of other options, it cannot be surprising they welcome China.

But at the same time, China is also merely offering countries an option they choose to take as other offers are absent or unattractive.

This is the perspective the West needs to take.

If other powers want to really counter Belt and Road in the underdeveloped world, they need to think logically about how to do this. Simply telling powers not to take the investment is unlikely to go far.

Offering them alternatives, either bilaterally, in cooperation with other powers or through international financial institutions, is more effective.

At the same time, such choices can sometimes not be an option. China’s economic firepower can be hard to compete against, and in some cases, there are good reasons why countries have been omitted from international financing.

The carrot of investment can be used as an incentive to change behaviour. There is a paternalistic aspect to this approach, but in these contexts, working closely with local authorities to help them develop the capacity to manage Chinese investment is a more productive way forward.

Helping poor countries develop managerial capacity or helping them take advantage of Chinese investment is more likely to have a lasting effect.

The answer to the Belt and Road needs to be a sensible one. Railing against the system when you are not offering anything else is pointless.

China clearly is taking advantage of some poor countries. But these are underdeveloped parts of the world which need investment. And in the absence of other options, it cannot be surprising they welcome China.

This is the crux of understanding how to respond to the Belt and Road. If you want to marshal a more effective response, you need to answer the need on the ground to which it is responding.

Until you do that, you are merely shouting against the storm.

Raffaello Pantucci is director of international security studies at the Royal United Services Institute (RUSI) in London

More belated catch up posting from my occasional column in the South China Morning Post, this one published at the same time as the SCO Summit and G7 in Charlevoix.

From China to Central Asia, a regional security bloc’s long, slow march towards an alternative world order

The world’s attention was on Singapore and Charlevoix but the future may have been in the Chinese city of Qingdao

PUBLISHED : Monday, 18 June, 2018, 8:45am
UPDATED : Wednesday, 20 June, 2018, 2:18pm

While the world was captivated this week by the globetrotting show of US President Donald Trump, another summit just days earlier suggested what an alternative world order might look like.

Various heads of state from member nations of the Shanghai Cooperation Organisation (SCO) met in the Chinese city of Qingdao for the bloc’s annual heads of state meeting.

The SCO’s activities have been limited in the decade and a half since it was formed but this year’s summit had some significant moments.

First and foremost was the presence of – and handshake between – Indian Prime Minister Narendra Modi and Pakistani President Mamnoon Hussain. While the membership of the two regional rivals is likely to be a major block to future activity, the presence of their leaders showed some of the organisation’s potential. Modi’s attendance alone signalled that the world’s biggest democracy wanted to maintain strong links to this archetypal non-Western institution to make sure it had all of its international bases covered.

The event was also an opportunity for two of the West’s biggest pariahs, Iran and Russia, to grandstand.

In the past Beijing has sought to tamp down efforts by Iranian leaders to transform the summit into a chance to bash the West. Back in 2010, President Mahmoud Ahmedinejad was so disappointed by the SCO’s refusal to admit Iran over fears of antagonising the West that he skipped the summit in Tashkent and instead attended the Shanghai Expo. But in Qingdao, the group chose to unite to highlight their displeasure at renewed Western sanctions against Iran and the collapse of the Iran nuclear deal.

Russian President Vladimir Putin has also regularly used high-profile summits in China to show disregard for Western sanctions and the optics around Putin’s attendance were similar to many other previous events, though this time are topped with a medal for his “friendship” with China.

On the sidelines of the summit, Chinese President Xi Jinping announced that “no matter what fluctuations there are in the international situation, China and Russia have always firmly taken the development of relations as a priority”. On live television he then proceeded to give the Russian leader a gold medal lauding him as “my best, most intimate friend”.

Awkward phrasing aside, this is a clear signal that China is siding with Moscow in tensions between Russia and the West. While Beijing might not always approve of Moscow’s disruptive behaviour on the international stage, the reality is that the two powers will, under their existing leaderships, always stand together against the West.

And this signal by Beijing was the most notable point about this entire summit.

China has long treated the SCO with the reverence required of an institution that brings together the heads of state of a number of its allies and which it helped name, while at the same time disregarding it as a functional organisation. Beijing has been unable, for example, to realise some of its key ambitions with the group. China has sought to push the SCO towards greater economic integration and activity, something resisted by other members fearful of China’s further encroachment into their territories.

Moscow sees the SCO as a way to try to control Chinese efforts in Central Asia while the Central Asians broadly view it as a possible way to maintain a balanced conversation with their giant neighbours. Meanwhile, powers like Iran, India or Pakistan see it as an alternative international forum that they want to be involved in.

With the accession of India and Pakistan most observers in China fear that the organisation’s already limited ability to operate is going to be even further reduced.

Yet none of this detracts from the fact that for Beijing it is a forum which they are hosting which now brings together the leaders of over a third of the planet’s population. They are clearly the dominant player within it, and it is a forum in which Western powers cannot meddle.

This gives Beijing the perfect opportunity to show its stature on the world stage and its efforts to offer a more stable alternative world order to the chaotic one that is most vividly expressed by the Trump administration.

The SCO may have done remarkably little beyond hold big meetings and China’s activity in all of the SCO member states at a bilateral level is infinitely more significant than its efforts through the bloc.

But at the same time, this is a forum that has consistently met and only grown. Under its auspices, China has managed to slowly encroach on Russia’s military and political dominance in its own backyard, and has now persuaded the world’s biggest democracy that it is an important group to be involved in.

This slow march forwards stands in stark contrast to the imagery and disputes to emerge from the G7 summit in Charlevoix. And while the Western media may have largely ignored events in Qingdao for events in Canada and Singapore, the rest of the world is paying attention. An alternative order might be starting to crystallise, or at least one that has potential to deeply undermine the West’s capacity to determine the future of world affairs.

Raffaello Pantucci is director of international security studies at the Royal United Services Institute in London

Have failed to keep up on posting working on longer things. Have a few longer pieces which will eventually land, but in the short run a few opinion pieces in the South China Morning Post, looking at the Belt and Road in various incarnations.  First, a piece about South Asia, intended to be in the wake of the Wuhan Summit meeting between President’s Xi and Modi.

How Beijing, Delhi and the China-Pakistan Economic Corridor could reshape global foreign policy in Asia 

Raffaello Pantucci writes that a China-India symbiosis stemming from the infrastructure projects being built in Pakistan will force the West to rethink its South Asia strategy

PUBLISHED : Monday, 11 June, 2018, 8:02am
UPDATED : Monday, 11 June, 2018, 11:13pm
There is an air of possible change in South Asia. After a positive summit in Wuhan, presidents Modi and Xi both made it clear they wanted the event to be the opening gambit in a rapprochement between India and China.

The modest practical achievements presented from the meeting should be seen as positive, illustrating that both powers are aware of the tensions and limitations of their relationship.

Nevertheless, the decision to focus on Afghanistan as a possible source of Indo-Chinese cooperation highlights the leaders’ willingness to be ambitious in their thinking. In Islamabad, however, there is a sense of concern about Pakistan being the potential loser in this larger regional rapprochement.

This short-sighted logic is founded on the perennial tensions that exist between Delhi and Islamabad. Yet, it misses a few key elements. China is clearly committed to Pakistan. The China-Pakistan Economic Corridor is the flagship project of the broader “Belt and Road Initiative” concept that Xi Jinping has advanced.

The People’s Bank of China’s expansion of the currency swap between the countries highlights a doubling down of China’s willingness to continue to invest in Pakistan.

The imprimatur given to the project by President Xi highlights the degree to which this part of the broader concept has to be delivered on, notwithstanding the sometimes awkward economic logic that underpins some projects.

For China, the undertaking is an important one and tied not only to its domestic security and prosperity, but also to the strategic assets it receives from its interest in the Gwadar Port.

But the China-Pakistan Economic Corridor sometimes does frustrate and worry Beijing. While Chinese diplomacy is an exemplar of keeping disputes out of the public eye, there are some issues.

Workers have been murdered and various insurgent and terrorist groups around the country have made specific targets of Chinese nationals and the China-Pakistan Economic Corridor in an attempt to undermine the government.

That the Chinese consulate in Karachi had to issue a travel advisory to nationals earlier this year, dissuading them from travelling to Quetta, illustrates the security concerns China feels in the country.

That the minister responsible for managing the China-Pakistan Economic Corridor (who is also the interior minister) was injured by an assassin’s bullet does little to inspire confidence in Pakistan’s national security.

None of this is to talk about the awkward economics that exist around some of the corridor’s projects.

And China has proven willing in the past to side with Delhi on security problems. The statement after the BRICS summit last year in which China agreed to specifically single out some Pakistan-based groups for criticism, as well as Beijing’s regular efforts to get Delhi and Islamabad to talk after incidents, highlight the Chinese government’s awareness of the problems that exist.

What Islamabad needs to bear in mind is that the China-Pakistan Economic Corridor is not the only part of the Belt and Road Initiative. It is one strand of Xi Jinping’s bigger foreign policy concept. It is not even the only South Asian corridor (the Bangladesh-China-India-Myanmar Economic Corridor is another slow burning concept), but rather the first to be implemented with vigour.

The ability of China and India to hold a summit and discuss ideas for cooperation sensibly when hawkish administrations are in both Beijing and Delhi, reflects the underlying direction in which South Asia is moving.

For China and its companies, India is in many ways the bigger game to play. The growing number of tech purchases by Chinese firms in the Indian market highlights an awareness of India’s booming potential. And beyond India, China realises that a more interconnected, stable and cordial community of South Asian nations will ensure the prosperity that will help stabilise China’s immediate land peripheries.

Afghanistan needs stability to be prosperous and not export problems to Central Asia, Pakistan and, ultimately, China. From Beijing’s perspective, this will only work if the country is more connected to its region.

Wang Yi and other officials have talked about connecting the China-Pakistan Economic Corridor to Afghanistan, but it is not clear how positively Islamabad views this idea. The corridor will only deliver the prosperity that will help Pakistan grow if it is a truly regional project, and this means it must connect better with its immediate neighbours as well as those in the Khunjerab Pass area.

This is the point Islamabad needs to keep in mind: China and India want to find ways to engage and tap each other’s economic opportunities.

India may be sceptical of the broader belt and road plan, but it remains keen to engage in some aspects of it, such as the Asian Infrastructure Investment Bank and the chance to bring Chinese investment into the country. A nation hungry for investment, Modi’s India is keen to find any way to grow to catch up with its richer Asian neighbour.

For Beijing, this is an opportunity in every direction: a prosperous India would be good for China. A prosperous and stable Pakistan would be a net boon. And a stable and secure Afghanistan would achieve a long-awaited goal for the entire region.

While Beijing is still working out how it will manage to deliver on this vision, the direction of travel is clear – and should be appreciated, not just by the region but the world.

Notwithstanding the tensions that will undoubtedly create some bumps in the road, the ability to hold a summit and discuss ideas for cooperation sensibly when hawkish administrations are in both Beijing and Delhi, reflects the underlying direction in which South Asia is moving.

Islamabad needs to pay attention before casting all its chips in one basket; the West needs to focus on what South Asia’s course means for any attempts to use India as a counterbalance to China.

Ultimately, these Asian giants know their own backyard, and will focus on that over any global ideological confrontation.

Raffaello Pantucci is director of international security studies at the Royal United Services Institute in London

This article appeared in the South China Morning Post print edition as: Islamabad should not fear signs of Sino-Indian rapprochement