Archive for the ‘PRESS’ Category

A week and a bit later, finally posting my most recent piece for local paper Straits Times. This one explores the Digital Silk Road, something I have been looking at a growing amount for this larger RUSI project I have been working on which has a specific cyber and digital strand to it. In other words more on this to come, though more likely from the policy angle than the technical one which I am continually learning about.

Bumps on the Digital Silk Road

Chinese tech giants are superb builders but feared for their prowess and government links. But what if the greater risk lies in these firms themselves?

A potentially bigger problem the Digital Silk Road faces comes from within China.PHOTO: BLOOMBERG

At the height of the Sino-Indian Himalayan border clash last year, New Delhi suddenly slapped a ban on dozens of Chinese mobile phone apps on security grounds. Most prominent among them was TikTok, the video-sharing app which has taken the world’s teenagers by storm.

The Indian ban came amid a wider wave of pushback against China’s digital and technology companies, led by the United States but taking effect globally in different ways, creating bumps in the building of China’s Digital Silk Road (DSR).

India has always been a major point of interest for Chinese technology firms. With a market size potentially the same as China’s, it offers an opportunity for exponential growth right next door. For TikTok, before the abrupt cut-off, India was its biggest market outside China with some 200 million people on its platform and proof that a Chinese company could take on America’s Big Tech in new markets.

Hardware companies such as Xiaomi and Huawei have long listed India as a major source of growth. In 2018, Huawei announced an “India first” policy and started to establish a growing volume of its manufacturing for the market in the country itself. In 2017, Xiaomi’s sales in India topped US$1 billion (S$1.3 billion), while in the first quarter of this year (notwithstanding political tensions and Covid-19 economic slowdowns) it shipped some 38 million units to Indian customers, accounting for 26 per cent of the smartphone market with an impressive 23 per cent year-on-year growth.

On the software side, Bytedance (TikTok’s parent company) had bet heavily on India prior to the banning, hoping to grow its user base with a local team of around 2,000 staff. Mr Jack Ma’s Alibaba is reported to have invested some US$2 billion in the Indian market since 2015.

This push into India was the realisation of the vision of the DSR, a concept first laid out by Beijing in a 2015 White Paper. At the time, the DSR was somewhat ignored except in specialist circles as it seemed to be the latest variant of the Silk Road nomenclature in the wake of President Xi Jinping’s 2013 Belt and Road speeches in Astana and Jakarta.

Yet this rather dismissive view belies the potential impact of the expansion of the DSR, which sees China, through its technology firms and state loans, helping recipient countries build their telco networks, e-commerce, mobile payment, smart city and other high-tech infrastructure. Chinese technology companies are paving parts of the world’s digital future.

In the global market, China’s technology firms are more than holding their own. Huawei and Xiaomi phones are affordable and of good quality. Huawei is increasingly the only firm that is manufacturing the infrastructure needed by countries to upgrade their next-generation Internet network. Huawei and ZTE are among the dominant providers of telecoms hardware in the countries surrounding China, while firms like Hikvision or Dahua are offering new technologies at accessible rates.

Chinese online payment applications and fintech are at the cutting edge, while across growing swathes of Asia, Alibaba, Taobao and JD.com online sales platforms are competing robustly against Amazon and other online marketplaces. The easy access to cheap Chinese products makes them very attractive.

An entire sub-economy has emerged of local entrepreneurs in countries such as Kyrgyzstan and Indonesia who create websites in local languages that provide people with access to the Chinese platforms. Across Asia (and more widely), these online middlemen set themselves up as interpreters of Chinese platforms to those who are unfamiliar with the language but want access to the bountiful and cheap products on offer.

In some ways, this is a classic win-win. The countries get affordable technology, investment and access to the Chinese market.

DATA SECURITY CONCERNS

Yet there is another side to it which India was trying to address with its abrupt closure of a whole raft of Chinese apps. Part punitive and part defensive, India’s pushback was amongst the sharpest that China had yet encountered as it paved its Digital Silk Road.

Concerns about privacy, access to data and espionage have increasingly dogged Chinese technology firms. Former president Donald Trump’s White House was aggressive in calling out the dangers of Chinese technology, though his scattershot approach did not always deliver the impact that was intended. Chinese firms and the government have repeatedly denied the accusations levelled against them.

Notwithstanding the Chinese denials, there are areas of concern. In 2017, Huawei removed a Wi-Fi module in a surveillance system sold to police in Lahore when it was discovered by locals. The discovery of the module, which provided an option for remote control that the company had not advertised, caused consternation in Islamabad. Not enough, however, to stop the Huawei chief executive from meeting Prime Minister Imran Khan in 2019 and signing a memorandum of understanding for the company to build a giant cloud data centre in Pakistan. And there have been repeated reports that Chinese-installed technology in the African Union’s headquarters in Addis Ababa have been used to send information back to China.

Separately, TikTok has come under fire in various jurisdictions for censoring data, in part to adhere to Chinese government concerns. In Europe, the Italian government is suing the company for not having adequate protection for children’s data.

The biggest fear at the moment, however, is data collection and access. Driving this is the fear that the Chinese government could in theory demand that any Chinese company hand over whatever data it might have on foreign nationals using its application.

The reality, however, is far more complicated than this. In response to different data protection requirements of the countries they operate in, Chinese tech companies have built data centres around the world to store client information. Singapore, for example, is a particular beneficiary of this trend in Asia, offering a secure location outside China in the heart of Asia. Such centres should be beyond the Chinese government’s reach, though, of course, it can be difficult to monitor this.

But this is not the most interesting aspect of this data collection. Far more important is the volume of information this provides Chinese firms to hone their technical capabilities.

The current rush in new technology is to develop new artificial intelligence tools. In order to train these tools, you need massive amounts of data for them to learn from – something these Chinese behemoths are increasingly gathering in vast volume from around the world and particularly in Asia.

For countries leery of China’s ambitions, this advantage makes the growth of Chinese tech companies not only a potential national security threat, but also an economic threat that could stymie if not kill off rival plans to develop similar tools.

Given all of these concerns, it is not surprising that India decided to block Chinese penetration of its market. For India and others, the worry is not just the DSR burrowing too deeply into their local economies but also the longer-term risk of taking over their digital futures and exposing them to unknown future problems.

VULNERABLE GIANTS

For all that, a less discussed but potentially bigger problem the Digital Silk Road faces comes from within China. The abrupt defenestration of China’s most famous tech entrepreneur, Mr Ma, after he had carried Beijing’s flag for tech growth and innovation around the world, highlighted how vulnerable Chinese private companies really are. Not even China’s biggest tech company, Alibaba, is immune to political censure and punishment.

So far, it appears a chastened Mr Ma is having his wings clipped for challenging China’s domestic lenders too brazenly. His future remains unclear, but the slapdown halted what would have been the world’s largest-ever initial public offering of Alibaba’s payments off-shoot, Ant Financial.

While the scenarios are speculative at this stage, some questions about the relationship between the central government and Chinese tech companies need looking at. What are the implications for contracts or activities run by these companies should they fall foul of the government? What if the Chinese government was to abruptly nationalise or take over parts of Alibaba’s global empire? Countries could find themselves suddenly facing a situation where their entire online payments system was in fact owned by a foreign government.

In other words, the Digital Silk Road’s greatest dangers may not necessarily lie in the possibility of Chinese firms secretly accessing private data or the Chinese state using the infrastructure to hack people around the world, but the political vulnerabilities these firms face back home. If they are less stable than they appear and given the world’s growing reliance on digital economies and infrastructure, the unravelling of key parts of this silk road is a far graver threat than meets the eye.

Raffaello Pantucci is a senior fellow at the S. Rajaratnam School of International Studies and has a forthcoming book looking at China’s relations with Central Asia.

The wonderful Katie Putz of the Diplomat was kind enough to invite me to do an interview with her excellent publication – covering a wide range of China in South and Central Asia questions, though mostly looking southward with a bit of a focus on Afghanistan. Have not posted it all here as behind a firewall at the moment, but will hope to later. Am posting after it a podcast recording that I did with Suzanne Raine of Cambridge University (and formerly of the Foreign & Commonwealth Office) looking at how terrorist threats are evolving.

Raffaello Pantucci on China’s Presence in South Asia

The U.S. withdrawal from Afghanistan highlights the importance of South and Central Asia to China.

Pakistan and Chinese soldiers take part in a joint exercise in Jhelum, Pakistan Thursday, Nov 24, 2011.
Credit: AP Photo/B.K.Bangash

As the United States embarks on its withdrawal from Afghanistan, some wonder what China will do given the country’s critical interests in South and Central Asia. Chinese President Xi Jinping’s Belt and Road Initiative is merely the latest articulation of a strategic narrative that imbues the South and Central Asian region with critical importance to China. As Raffaello Pantucci, a senior fellow at the Royal United Services Institute (RUSI), explains in the following interview, China has long-running interests in the wider region. While Beijing is not poised to follow the Soviet Union and now, the United States, into the “graveyard of empires,” those interests remain important to China.

What interests in the wider South and Central Asia region most draw Beijing’s attention?

China is most worried about security problems it perceives as being based in South and Central Asia which might threaten domestic stability. Principal amongst these is a fear that the region might become a staging ground for Uyghur dissidents or militants to create instability in Xinjiang. A secondary group of concerns emanates from a fear of threats to Chinese economic investments and interests in the region. In Beijing’s conception these investments are also linked to Xinjiang as well, as their success is in part linked to prosperity and growth in Xinjiang, which China sees as the key to longer-term stability within its borders.

At a wider strategic level, China is worried that the region could be used by adversary powers, like the United States, as a place from which to foment instability within China. This has most recently been tied by the Ministry of Foreign Affairs directly to Afghanistan, but is a persistent fear that has always lurked in the back of Chinese minds. From their perspective, the region is their backyard and directly linked to some of the most sensitive parts of their country.

Finally, this region is the cradle of Xi Jinping’s foreign policy vision, the Belt and Road Initiative (BRI). The concept was launched in the Kazakh capital, then-Astana (now Nur-Sultan), and the China-Pakistan Economic Corridor (CPEC) is called the keynote project of the vision. This gives it a particular importance conceptually to Beijing as failure here would be tantamount to failure of his vision. The economic interests that are linked to BRI in the region are important to China, but are often overstated as the priorities for Beijing’s concerns. The economic interests are important to the specific firms involved; the strategic aspect comes in terms of the impact they might have on domestic growth and stability, in particular in Xinjiang.

Read more here.

Also, am posting the podcast discussion with Suzanne Raine for the Centre for Geopolitics at Cambridge University.

Some more late posting on a subject been doing a lot of work on this year China in Afghanistan, this time for the South China Morning Post. Have a longer paper on this landing soon, and there is a whole chapter in my upcoming book which draws on some time I spent there a while ago. This is going to be an important year for Afghanistan, let us hope things go well for everybody there.

How US withdrawal from Afghanistan offers promise and peril for China

  • The balance in Afghanistan seems weighted more towards opportunity than challenge for China as the geopolitical equation changes
  • Beijing might believe it knows how to avoid pitfalls, but history is littered with powers that were confident they had sway over the Eurasian heartland
US Marines patrol as they clear improvised explosive devices in Trikh Nawar on the outskirts of Marjah, Afghanistan, on February 21, 2010. Photo: AFP

US President Joe Biden’s decision for the US to leave Afghanistan is both a challenge and an opportunity for China. On the opportunity side, China rids itself of worrying US military bases near its border. On the challenge side, it leaves open the question of who will deal with the instability that might grow in Afghanistan.

China still lacks the hard power to do this itself, and it is unclear whether Afghan forces can deliver such security assurances. None of this is new for Beijing, but the balance now seems weighted more towards opportunity than challenge.

China has long worried about instability from Afghanistan, but more indirectly than directly. This is based on an understanding of the region – the Taliban has not been known to attack north into Central Asia and are wary about irritating supporters in Pakistan – as well as the fact that Afghanistan’s border with China is remote and fairly firmly secured.

There is always the fear that Afghanistan could be a base from which trouble can brew, though. Militants who want to launch attacks elsewhere might see Afghanistan as a convenient home from which to operate. We have seen this play out with al-Qaeda and are seeing hints of it with Islamic State forces. China is worried Afghanistan might become a staging point for Uygur militants.

Since President Xi Jinping’s visit to Xinjiang in 2014, there has been an increase in Chinese security attention on the border with Afghanistan to mitigate this risk. This was in part driven by the declaration that the US was leaving Afghanistan.

Beijing has supported border forces in Tajikistan and Pakistan, and it has worked with Afghan security forces to strengthen their side of the Wakhan Corridor. It has developed deeper relations with Afghanistan’s security apparatus, strengthening political links and providing support to build bases.

From Beijing’s perspective, this is a relatively small and tight seal at the moment, though complacency in these cases is lethal.

Afghan security officials appear conscious of these concerns. They continue to refer to the East Turkestan Islamic Movement (ETIM) as a potential danger, to soothe Chinese worries and as a snub to the US, which has removed the ETIM from its list of terrorist organisations.

In other words, Afghan leaders are referring to a specific threat the US says does not exist. Additionally, the Taliban has shown itself willing to engage with Beijing and mentioned a willingness to provide protection for infrastructure being built in Afghanistan.

Having covered security up to a point, China has the opportunity side to consider. The often overplayed economic opportunities are not the biggest prize, as basic economic geography dictates that China will be a major beneficiary of Afghanistan’s resources. Their slow uptake so far is a reflection of Afghanistan’s complexities rather than Chinese appetite.

From Beijing’s perspective, the removal of a US military base from its backyard as relations with the US become testier is a relief. There was always secret gratitude that the US was in Afghanistan, dealing with the Taliban and other worrying groups, but this was balanced by Beijing’s principal adversary operating in its backyard.

Now that this is gone, China has a clear sweep across the Eurasian heartland. With Iran and Russia as anti-American brackets on the other side of Central Asia, Beijing has geopolitical sway over the entire region. With India and Pakistan growing closer and New Delhi willing to step back from the brink along the Sino-Indian border, China finds itself comfortably placed in Eurasia.

The Shanghai Cooperation Organisation (SCO), which includes these countries as members or observers, celebrates its 20th anniversary this year. The SCO has been derided as a do-nothing entity, but the American withdrawal leaves a hole the China-led grouping is well-placed to fill.

This is not to say the SCO will deploy in force. Instead, it provides China with an existing framework to play a role in determining the region’s future.

The problem for Beijing is this role comes with responsibilities and issues that China has repeatedly failed to figure out how to address. The Taliban is not a responsible player and, like everyone else, Beijing will be sceptical about any assurances it receives.

At the same time, none of the other SCO members are enamoured by Chinese power or aspire to it; rather, they fear it. Governance by fear might be effective, but it leaves you exposed if those powers are presented with other options. Russia and Iran, for example, would probably turn on China if the West abruptly shifted its posture towards them. 

None of this appears to unduly concern China. It is focused on highlighting American behaviour and spreading conspiratorial narratives about the US using Afghanistan as a base to mobilise Uygurs to attack China.

It is going to get dragged into regional geopolitics in the longer term, though, and while China has managed to avoid such clashes so far, it will eventually have to make some hard choices.

Beijing might believe it knows how to avoid such forks in the road, but history is littered with powers that were confident they had sway over the Eurasian heartland. China might enjoy the American withdrawal from Afghanistan but, in the longer term, the scales might tip more towards challenge than opportunity.

Raffaello Pantucci is senior associate fellow at the Royal United Services Institute (RUSI) in London

Into a new month, and a few things left over from the last one to publish. First up a short letter for the Financial Times which got a surprising amount of resonance, which reflects the fact that size is not everything I suppose!

Am also using this moment to do a media catch up which I have not done in a while. At the bottom of this post am putting a podcast I did with Veerle as part of a project I have been working on with RUSI (and partnering with Chatham House) which looks at trying to develop an agenda for a Transatlantic Dialogue on China.

This aside, spoke to RFE/RL about China in Afghanistan and separately about the Belt and Road; to the South China Morning Post about what the withdrawal from Afghanistan means to China, how China characterises its counter-terrorism program in Xinjiang, why ISIS has not talked much about China, what China is doing in Afghanistan, and China-Japan; to CNN about the China policy that Biden inherited; to the Mail on Sunday about Jack Ma; and on the other side of my work, to the Telegraph about 10 years on since bin Laden’s death; to The National about UK air strikes on ISIS in Syria; and, finally, to Australian ABC about the excellent work of the Unity Initiative.

Letter: West needs ‘grey zones’ not red lines in Ukraine and Taiwan

From Raffaello Pantucci, Senior Associate Fellow, Royal United Services Institute, London SW1, UK

A Russian navy ship is seen during navy drills in the Black Sea on April 14, 2021. © AP

Gideon Rachman (“Why China and Russia will now test Biden”, Opinion, April 20) is right to identify Taiwan and Ukraine as places where the US (and its allies) will find themselves tested by China and Russia.

Setting red lines, however, is not necessarily the answer. It might instead create a series of tests which Beijing and Moscow feel compelled to probe in creative ways.

The challenge of setting red lines is that people will tend to run towards them. Knowing exactly where the lines in the sand are drawn provides adversaries with a target. And once they have reached the line, they explore ways in which they can softly undermine it — using the very “grey zone tactics” that Rachman identifies as being key weapons in Beijing and Moscow’s toolboxes.

The net result is further confusion. If they have not clearly crossed the line by using deniable cyber tactics or proxies, what is to be done?

It may take time to clarify. But for the moment, the discussion will be about whether they crossed the line or not — with the mere debate about it suggesting they did and the west did nothing about it. No good comes of this beyond seeming to undermine western commitments.

The question is not are China and Russia adversaries in these situations. They clearly see themselves as such and continue to act as though they are. Rather it is a question of whether the west is committed to helping Ukraine and Taiwan. So far, the west has remained resolute in its support for both countries — President Joe Biden is sending delegations of close allies to Taipei while his most recent round of sanctions suggests a willingness to confront Russian behaviour. Both countries continue to be recipients of US military aid.

The only additional benefit a clear red line would contribute would be to suggest the throwing down of a gauntlet after which presumably the west will have to reply with harder force.

Far better to keep a deniable grey zone on the west’s side as well, which keeps adversaries wondering how we might respond and how far they can go. A jockeying may seem to leave things open for miscalculation, but is also likely to be the best we can hope for, short of open warfare in a geopolitical context of great power conflict.

Raffaello Pantucci
Senior Associate Fellow
Royal United Services Institute

And now for some links to other media outputs which are online that have popped up in the past period. First up is the podcast referenced above which is part of the bigger Transatlantic Dialogue on China project Veerle and myself are working on at RUSI.

Next up a panel discussion with Turkish TRT Television looking at what Biden’s pledges towards NATO mean for Europe and international security in particular, with former NATO policy planner Dr Jamie Shea CMG and Dr Thomas Sutton from Baldwin College.

And finally, another panel with TRT, this time looking at what the UK’s new Integrated Review means with the Evening Standard’s Defence correspondent Robert Fox and former Foreign Office Permanent Under Secretary Sir Simon Fraser.

Another short comment piece, this time for the Telegraph, looking at the withdrawal announcement from Afghanistan. Suppose we still have to see what actually transpires, but this decision does feel different. There’s another piece in the pipeline on this topic from a different angle, which you will have to check back and see.

Withdrawal from Afghanistan is the right call, but at what price?

The invasion became a Sisyphean endeavour but many Afghans worry about what it means for the Taliban’s return of power and influence

The Taliban has learned that by simply holding on, victory against even the mightiest military machine is possible CREDIT: Jim Hollander /REUTERS

As emotionally challenging as it might seem, President Biden’s decision to end the United States commitment to Afghanistan is probably the right call.

Many American Presidents have come into power declaring they will end their country’s involvement in the conflict, only to find themselves continually stuck in the mire. Having repeatedly pushed for a shrunken US presence during the Obama administration, Mr Biden is now finally in a position to force the decision through. 

It is exaggerated to say this is the end of American power, but it does highlight the limitations of a form of conflict that dominated the 2000s.

While the initial impetus for going into Afghanistan was to destroy Al-Qaeda and punish those who supported it, as time went on it became clear that what the Western alliance was getting into was in fact merely the latest phase in a conflict that has been troubling Afghanistan for decades.

Trying to resolve the larger conflict was something that would likely take generations of state building and transformation – none of which was necessarily wanted or accepted by everybody in Afghanistan.

The invasion became a Sisyphean endeavour being carried out while people died, vast sums of money were spent and political capital slowly ebbed away.

The other key lesson is being learned by insurgent and terrorist organizations, who can see once again that by simply holding on, victory against even the mightiest military machine is possible.

While the direct threat to the west from terrorist groups in Afghanistan is vastly reduced (though not entirely gone away, there is a case currently on trial in Germany of a cell who were talking to the Islamic State in Afghanistan), Al-Qaeda will undoubtedly celebrate the victory loudly and the Taliban will no doubt present themselves as victors. Terrorists may gather again in the ungoverned spaces that emerge from the withdrawal. 

Nevertheless, it is far from clear that we will see another attack on the scale of September 11, 2001. Intelligence agencies are far savvier about the potential of such threats and while withdrawal means coverage of Afghanistan will go down, it will not entirely go away. 

Within Afghanistan, people are concerned about the Taliban’s return of power and influence.

An organization with a medievalist outlook that has not significantly changed in the past twenty years, it still clearly has substantial appeal among Afghans.

Many in the country are doubtless concerned about a return to the civil war and warlordism that scourged the country during the 1990s. Both of these are sadly possible outcomes.

But this is not the same country as it was before. And it is not clear that all the gains of the past two decades will immediately be lost.

Regional powers still have a vested interest in ensuring that some stability exists, and that violence in the country does not get too out of hand.

The key question in all of this, however, is what the Afghan people want and how their leaders will help them achieve it. The ultimate answer to Afghanistan’s long troubles will only ever come from within the country.

Raffaello Pantucci is Senior Associate Fellow at the Royal United Services Institute (RUSI)

Have not been posting for a while, need to catch up. Been very busy with some longer projects some of which will eventually emerge. But for the time being, enjoy this comment for the South China Morning Post on Wang Yi’s Middle East tour following the blow-out in Anchorage.

How China’s Middle East charm offensive succeeded despite affecting little change

  • What Foreign Minister Wang Yi’s visit to the region may lack in material achievements, it makes up for in good optics. China is a major player in the region
  • In highlighting this, Wang has undermined the Western-driven condemnation of the week before and achieved China’s foreign policy goals
Iranian Foreign Minister Mohammad Javad Zarif (right) greets Chinese Foreign Minister Wang Yi after a document-signing ceremony in Tehran on March 27. Photo: EPA-EFE
Iranian Foreign Minister Mohammad Javad Zarif (right) greets Chinese Foreign Minister Wang Yi after a document-signing ceremony in Tehran on March 27. Photo: EPA-EFE

US-China tensions have continued seamlessly into the Biden administration. Beijing’s desire for a reset was bluntly rebuffed in Alaska, however China is trying to spin that story now. The sanctions dispute over Xinjiang will only further strengthen a transatlantic desire to confront China. 

Sensing this, Beijing has launched a diplomatic offensive, first hosting its traditional ally, Russia, followed by a Middle East roadshow by Foreign Minister Wang Yi.

But while the Middle East visit was largely a repeat of what we have heard before and showed the limits of China’s ability to change the region, it did highlight again the world’s desire to not get caught in the middle of a spat between Beijing and Washington – an outlook that strengthens China’s hand.

The one place in which change was delivered was Iran, a country that is struggling for options at the moment in the grip of Western sanctions. For Tehran, the relationship with Beijing is a window onto the world and an opportunity when it is running out of options.

But the 25-year cooperation agreement the two sides signed is not a cheque for US$400 billion as was widely reported but rather a list of areas in which China will engage with Iran during the next two decades.

Given China’s and Iran’s generally negative image and collective confrontation with the United States, there is clear utility to the imagery of striking a loud public deal like this for both countries. It does change Iran’s calculus and position, but the biggest benefits are likely to accrue to China, whose companies will be able to pick and choose the opportunities they want at prices they like, given Tehran’s lack of alternatives at the moment.

The other new – and very contemporary – aspect to this visit was the push on medical or vaccine diplomacy. While in the UAE, Wang oversaw the launch of a joint project between Sinopharm and local firm G42 Medications Trading in the Khalifa Industrial Zone of Abu Dhabi.

Intended to open later this year, the project aims to manufacture Covid-19 vaccines to help the region inoculate against the virus. The project builds on earlier engagement by the Chinese firm in the UAE, which hosted phase 3 trials of the vaccine last year. It is undoubtedly positive that more people will get access to the vaccine as a result.

But much of the rest of Wang’s visit was a repeat of what we have heard before. The overall five-point structure he proposed, advocating mutual respect, upholding equality and justice,  non-proliferation, fostering collective security and accelerating development cooperation are a fairly predictable roster of declarations by a Chinese leader. They are not anything one can disagree with, but it is difficult to see China achieving some of those goals in the region.

Wang proposed China would try to help broker peace between Palestine and Israel. Beijing has declared this goal before and it has always been warmly welcomed, but it seems unlikely that China will be able to deliver. The offer to host another meeting between the two sides is unlikely to break that deadlock.

Additionally, China said it was going to work with Russia to unlock the Joint Comprehensive Plan of Action with Iran. This is not going to move ahead unless the Western partners are all on board.

The more interesting chasm which Beijing instead managed to navigate is the clash between Iran and Saudi Arabia. Wang did not offer any new ideas here, but more intriguing is that both countries were equally eager to engage notwithstanding the tensions they share.

This is the confusing magic of China’s Middle Eastern relations – its ability to float between adversaries in ways which others cannot.

The extent of Wang’s demands on the visit appeared to be having good optics and statements supporting China’s treatment of its own people at home. Even during his stop in Turkey, where he was confronted with protesting Uygurs, the Turkish government offered no strong criticism and instead, President Recep Tayyip Erdogan praised the Sinovac vaccine his country has received.

Little materially changed in the region as a result of the visit, and it is unlikely anyone expected much to. Even so, the world was reminded once again that China is a major player and has the red carpet rolled out for it wherever it goes.

Wang also sought to ensure that the visit focused on positive aspects – connecting national development strategies, taking advantage of the region’s natural resources and helping the region develop new health care industries. While there was some discussion about Xinjiang, it was largely kept to Chinese talking points and controlled protests in Turkey, a contrast to the sanctions and tone coming out of Western capitals.

The difficulty for Western countries is not so much that China is displacing the United States – it still lacks the means, experience or interest to try to untangle the tangled complexities of the Middle East – or that anyone in the region changed their strategic positions towards the West. Instead, the visit reflects a region that follows China’s brutally realist view of the world, where values come second to interests. In highlighting this, Wang has undermined the Western-driven condemnation of the week before and achieved his foreign policy goals.

Raffaello Pantucci is a Senior Associate Fellow at the Royal United Services Institute in London

Another piece on China in Central Asia, this time for the Straits Times looking at the question of competitive vaccine diplomacy in competition with Russia. All of this is teeing up the book, and a few more bigger pieces due out at some point during the year. Am also maybe hoping to revive the website, though that is going to take some work.

Wooing Central Asia, over Covid

Russia deployed vaccine diplomacy. China brought in not just vaccines, but equipment and medical aid. Who won?

ST ILLUSTRATION: MIEL

Trapped between China and Russia, Central Asia has always found itself stuck between empires. In earlier times, it was conquerors from the region such as Tamerlane who built Eurasian empires, but increasingly the countries find themselves trying to thread a diplomatic needle between competing external powers.

Currently, it is medicine that is defining the struggle in the region, as both China and Russia compete for influence through their medical diplomacy.

While Beijing appears to have the upper hand in terms of volume, it is Moscow that appears to be winning over the hearts and minds.

As Kazakhstan embarks on a vaccination drive using Sputnik V, China could ask itself why its medical diplomacy in Central Asia has not worked as it hoped it might. Rather than turn the region towards Beijing, it appears to have simply exacerbated existing tensions and suspicions towards China. The region has benefited from China’s support and largess, but Central Asians still tend primarily towards Moscow.

First, a bit of history: Russian strategists tend to see the world through spheres of influence. From their view, Central Asia is seen as “theirs”. From before the Soviet Union, the nations of Central Asia were part of the wider Russian Empire. During the 1800s, Imperial Russia expanded up to Afghanistan, and the original Great Game was born between the competing English and Russian empires as they sought to keep each other at bay in distant Asia.

At the time, China was an inward-looking power. The Qing Dynasty was fighting wars against encroaching European empires, and Chinese Imperial expansion into Central Asia had stopped far earlier, after the Battle of Talas in 751AD. Xinjiang under the Qing was a far-flung corner of China which was far from the Emperor’s attentions.

BALANCING ACT CONTINUES

Today, the countries of Central Asia – Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan – are independent states with their own governments and agency. This year, they celebrate their 30th independence anniversaries from under the Soviet yoke. But they remain landlocked and bound to their neighbours, stuck in an awkward balancing act between China and Russia.

Moscow is keen to stay influential. There is an economic and security interest. Human connections persist with millions of Central Asians working as low-wage labourers or workers in Russia. The remittances generated provide huge inflows of currency to Central Asian economies, while Russia gets the benefits of a cheap workforce. The region is also attractive to Russian companies that see opportunity in a region where they share a language and many cultural practices.

At the same time, Moscow also sees the region as a buffer from the violence and drugs that emanate from Afghanistan, investing considerable amounts in supporting security institutions across the region.

And Russia has sought to strengthen this connection through a constellation of post-Soviet multilateral institutions such as the Eurasian Economic Union (EAEU), which former US secretary of state Hillary Clinton called part of an attempt to re-Sovietise the region, the Collective Security Treaty Organisation and the Commonwealth of Independent States. (The former grew out of the framework of the latter.)

Not all Central Asians are willing participants, though in the case of the EAEU, it was an idea which was proposed by Kazakh leader Nursultan Nazarbayev.

CHINA’S FOCUS: STABILITY

Modern China wants to expand into the region to protect itself from any threats that might emerge, as well as profit from the potential it offers.

Since then Premier Li Peng’s foundation-laying tour of the region in 1994 – which established the contours of the area’s contemporary relationship with China – the focus has been on economic links and trade corridors articulated under the phrasing of silk roads. This has sat alongside a persistent fear that Uighur groups might use the region to foment trouble within Xinjiang.

The answer, from China’s perspective, is a growing security footprint focused on its own interests and concerns, alongside a surge in economic links and investment which ultimately seek to improve stability and security in the region and Xinjiang. China is not really interested in conquering the region or creating a sphere of influence like Moscow, but rather it wants guarantees and stability to ultimately help foster stability and security at home.

And so far, China is playing a winning game. It is now the main trading partner with all the Central Asian powers, and has been increasing its investment.

Traditionally perceived as being focused on natural resources such as metals, oil and gas, Chinese companies are, in fact, increasingly present across Central Asian economies – from online traders like Alibaba or Taobao, to agriculture and food products, and infrastructure construction of every sort – from roads, rail, telecoms and more.

This flow of investment and trade is followed by a soft-power push in education and training, which is increasingly normalising China’s presence in and links with the region.

RUSSIA’S FOCUS: INFLUENCE

Russia continues to keep its hand active, though. China may be rewiring the region, literally as well as metaphorically, so all paths lead back to Beijing, but Moscow continues to be the first capital politicians will visit. And Russia remains the pre-eminent security partner in training, military sales and security ventures.

Technology is the one space where it is hard to see Russia competing with China, but Moscow has sought to find other ways of maintaining a significant role, including through influencing legislation.

But there is a tension between the two powers. Russia can see it is losing ground, but feels it is unable to do too much because it lacks China’s resources. It also prioritises a geostrategic relationship with Beijing over whatever happens in Central Asia.

There is little appetite in Russia for Central Asia to become an impediment or complicating factor to its relationship with China. Ultimately, Moscow is more interested in ensuring Beijing is onside in its greater confrontation with the West than the concerns Russia might have with Chinese encroachment into Central Asia. But there is a growing concern in Moscow that they might find Central Asia becoming the soft underbelly through which China can undermine Russia.

MEDICAL DIPLOMACY

This leads to pushback, the most recent expression of which can be seen in the vaccine diplomacy being deployed across the region.

Central Asia’s response to Covid-19 was spasmodic at best. Turkmenistan, for instance, has yet to admit it has suffered any cases, though foreign diplomats have perished from Covid-like diseases and the country has ordered vaccines. Kazakhstan, Kyrgyzstan and Uzbekistan have all suffered cases, but the numbers have been relatively low. At this point, the region does seem to have turned a corner in dealing with the coronavirus, in part due to the interventions from its two giant neighbours.

In the Russian case, it has been through the Sputnik V vaccine, while China has provided protective equipment, medical training courses and webinars as well as planeloads of aid from Chinese companies, regions and institutions. Additionally, Chinese vaccine producers have used Uzbekistan as a site for phase three testing, while deliveries of their vaccines have started to arrive in the region.

But this Chinese dominance has not translated into popularity. According to data from the Central Asian Barometer, when asked which country would be most likely to help them manage Covid-19, 52 per cent of Kazakhs, 58 per cent of Uzbeks and 76 per cent of Kyrgyz surveyed said Russia was most likely to be able to help. Only 20 per cent of Kazakhs, 14 per cent of Uzbeks and 8 per cent of Kyrgyz believed the same of China.

These numbers echo surveys done pre-Covid-19 which showed that across the region Russia was most popular, with China and the United States competing for second place.

For all its efforts, China’s medical diplomacy and growing investments do not appear to have delivered popular success in the heartland of Eurasia.

Bound still by linguistic, cultural and economic links, and a media which has great penetration throughout the region, Russia remains the more dominant actor within Central Asia. The region’s population still looks primarily towards Russia for its external support, something left over in part from history, but also out of a growing sense of concern about the meteoric rise of China around the world and in their immediate neighbourhood.

This will ultimately be reassuring to Moscow, as it realises it has a few cards that it can play against Beijing. For now, medical diplomacy is one of those cards as clearly Central Asians look more favourably on medical care from a bear than a dragon.

Raffaello Pantucci is a senior fellow at the S. Rajaratnam School of International Studies and has a forthcoming book looking at China’s relations with Central Asia.

The first in a pair of articles for Asian papers looking at China’s relations with Central Asia through the current COVID-19 disaster. This first one for the South China Morning Post, exploring the reality of how trade is being impacted during this time. In many ways what has been happening is not that surprising, but at the same time it seemed quite dissonant from Wang Yi’s comments during the 两会.

Belt and Road Initiative: China’s rosy picture is at odds with realities on the ground during Covid-19

  • Foreign Minister Wang Yi and others have sung the praises of the initiative and promoted its goal of improving cross-border flows of people and goods
  • The reality during the pandemic has been different, though, with China’s neighbours and partners frustrated by border closures, and goods facing lengthy delays
Foreign Minister Wang Yi (second right) attends a virtual ceremony with Pakistani Foreign Minister Shah Mahmood Qureshi to formally commence the celebrations of the 70th anniversary of diplomatic relations between the two countries in Beijing on March 2. Photo: Xinhua

Foreign Minister Wang Yi (second right) attends a virtual ceremony with Pakistani Foreign Minister Shah Mahmood Qureshi to formally commence the celebrations of the 70th anniversary of diplomatic relations between the two countries in Beijing on March 2. Photo: Xinhua

There is no pause button for the Belt and Road Initiative, Foreign Minister Wang Yi said during his expansive news conference on Chinese diplomacy during the annual Two Sessions summit in Beijing. Yet, look around China’s neighbours in Central and South Asia and the story looks very different. Closed or only partially opened borders, alongside stories of Chinese frustration at local partners, suggest at the very least a slow-motion button has been hit in several areas.

While the initiative as articulated by Wang is focused on infrastructure development, China has repeatedly highlighted how infrastructure is only the first pillar of the broader vision. Longer-term, the strategy is intended to be a vision for trade and economic flows around the world.

During a “high-level video conference on belt and road cooperation”, held last June, Wang spoke of a desire to “discuss the establishment of fast-track lanes for cross-border flows of people and goods with belt and road partners”.

Talk to haulers or traders in Central Asia, though, and the picture during the past year has been very different. Last December, the bottlenecks at Kazakh-Chinese rail borders became so bad that a reported 7,000 containers were stuck waiting to cross, with delays stretching to more than a month because of restrictions on the Chinese side.In Tajikistan and Kyrgyzstan, the border posts have remained closed at China’s request, with only very limited traffic being reported as passing through.

In his meeting last week with Chinese Ambassador to Bishkek Du Dewen, Kyrgyzstan Prime Minister Ulukbek Maripov made the latest official plea for China to open its border. Du has held numerous meetings with various Kyrgyz officials since the new government came in, and the question of reopening and speeding up border crossings has been repeatedly brought up, to no avail.

Traders using the Kulma Pass between China and Tajikistan have faced a closed border since October, and reportedly the Chinese side is using the opportunity to increase their own market share and squeeze out Tajik traders. One spoken to by the local press reported how winter clothes he had ordered from Kashgar last year were still stuck on the Chinese side and were now useless to him as winter had largely passed.

A Tajik official said in February that only 25 Tajik trucks had been allowed through the pass since the beginning of the year, and there was a 260-truck backlog. Meanwhile, the queue at Erkeshtam on the China-Kyrgyzstan border is four days, and only seven to eight trucks are able to cross daily as opposed to 50 to 60 that used to do so.

This has had a knock-on effect on transport costs. Uzbek markets report that the costs of taking a truckload of tangerines from China in 2019 was US$4,000 to US$5,000 per truck. In 2020, because of the coronavirus pandemic, the cost per truck increased to US$25,000 to US$26,000.Trucking goods from China to Europe used to take 16 to 18 days, but the border restrictions by China mean a vehicle can find itself waiting 15 to 20 days just to cross the China-Kazakh border.

The blame for many of these blockages is on the Chinese side, where restrictions blamed on Covid-19 are stopping transit trade. In fact, according to Chinese trade data, flows between China and all Central Asian countries with the exception of Kazakhstan have slumped in the past year. They range from an almost 50 per cent drop year on year with Tajikistan and Kyrgyzstan to a 30 per cent fall with Uzbekistan and Turkmenistan.

Kazakhstan has seen a 5 per cent year-on-year increase, though this is down on 9 per cent the year before and 34 per cent the year before that. So much for trade and connectivity flows being boosted during Covid-19. 

At the same time, China’s perennially complicated relationship with Pakistan continues to stumble on. The China-Pakistan Economic Corridor (CPEC) is inching forwards, although Chinese irritation is increasingly visible.

The 10th meeting of the Joint Cooperation Committee for CPEC, the central organising body which includes senior figures from China’s National Development and Reform Commission and Pakistan’s Ministry of Planning Development and Special Initiatives, has yet to take place. The ninth session was held in November 2019.Repeated delays blamed on Covid-19 and other complications have held things up, leading to suspicions something else might be at play. Covid-19 was, for example, not enough to stop Defence Minister Wei Fenghe visiting Pakistan in December 2020 to sign a new Memorandum of Understanding to bolster the already strong China-Pakistan military relationship.

The problems around CPEC have been obvious for some time. The increasing Pakistani military presence and involvement with CPEC decision-making highlights Beijing’s frustration, given that it has always favoured decisive military men over Pakistan’s politicians, and Chinese and Pakistani officials see military relations as the backbone of bilateral relations.This comes alongside the appointment of Nong Rong, a trade specialist from Guangxi, as ambassador to Pakistan in contrast to the usual foreign ministry cadre and South Asia hand who would usually be appointed, showing a desire by the Communist Party to further strengthen its hand.

None of these problems are that new or surprising, and China is perfectly entitled to strengthen its border controls to control the spread of Covid-19. However, it seems somewhat dissonant with the rosy picture painted by Wang.

Officials all over the world are prone to positive interpretations of events, but to offer something so discordant with what is happening on the ground suggests a larger problem. China has placed downward pressure on the Belt and Road Initiative, notwithstanding a clear desire by neighbours for things to get going again.

Raffaello Pantucci is senior associate fellow at the Royal United Services Institute (RUSI) in London

Back on my one of my more traditional topics which has become a lot less newsworthy of late in a new short piece for UK’s The Times Red Box about the never ending Shamima Begum case. Am sure this is not the last we will hear of this case, and my sense is that the subsequent problems that might emerge from the case are only likely to get longer the more she is left out in Syria. Hard to see how this is going to end well sadly.

Ignoring UK terrorists like Shamima Begum is not the answer

As she has for almost three years, Shamima Begum continues to sit in a dusty camp in Syria waiting for some resolution to her stage in life. Having made a catastrophically bad decision at 15, she is bound in a limbo to which there likely seems no end. The problems around her case, however, have not been resolved by the Supreme Court’s decision that simply prolongs her stasis.

There are numerous questions around her case, but three in particular distinguish themselves as needing immediate attention. First is the problem of her age. When she ran away to Syria at 15, she was committing a criminal terrorist act at an age younger than an anonymous Cornwall boy who pleaded guilty a few weeks ago to being a key UK figure of the online extreme right-wing group Feuerkrieg Division.

As a key organiser for the group online, he helped recruit others, vet members, and pushed followers online to move forwards to committing online acts of terrorism. Having pleaded guilty, he was given a two-year youth rehabilitation order, while a 17-year-old he had recruited and stirred into action was given a five-year custodial sentence for planning a terrorist attack.

It is difficult to compare the cases of course in part as we do not know what Begum did while she was in Syria. However, it does seem odd that our criminal justice system is able to handle teenage terrorists with relatively light custodial sentences while this young woman who started down a path when younger than them is on the receiving end of a literal life sentence.

We seem able to handle murderers, rapists, and other serious criminals through our ordinary criminal justice system, but we are incapable of managing a fanatical young woman.

Putting this to one side, it is also important to realise how utterly porous and unstable the situation in which Begum finds herself is. The camps in Syria are managed by a Kurdish fighting group that is ill-suited to keeping them and is far more pre-occupied with its own survival than the fate of those sitting in the camps. From their perspective, the foreigners are useful in that they keep the world’s attention on them, but they do not much care what actually happens to them.

The result has been regular escapes and clear evidence of support from networks back in the homes where they came from. In February, Turkish authorities detained French, Russian and New Zealand Isis women who had managed to sneak out of Syria. Investigations by UK newspapers have shown how online funding networks exist with links to the UK to raise money to help Isis women in these camps.

The point is that as static as the camps are, the people within them are not. This means that the method of simply leaving people over there and hoping the problem will go away is not an answer. And far more dangerous than leaving them in the camp is the prospect of them escaping unfettered and unobserved.

There is a final American angle to this dilemma. While President Biden is doubtless going to be focused on other things for the time being, it is a source of continued irritation in Washington that Europe has not found a way of managing its nationals in these camps.

While under Trump this complaint joined a long list of irritants with an administration that most wanted to try to avoid having to deal with, under Biden, the question will become more pressing and harder to ignore. Europeans spent a lot of time telling Washington off for Guantanamo Bay. How long before some in Washington start to draw similar comparisons?

There is no doubt that managing the return of Begum and the many others who joined Isis will be complicated. But the answer to this problem is to deal with it head on and on a case by case basis, rather than uniformly strip passports and dump on someone else people who are British responsibilities. Doubtless some of these individuals are hardened and irredeemable criminals who should serve long sentences for their crimes, but it is equally likely that some may be people who can be rehabilitated after some punishment. In this way they are similar to the many of thousands of others who have been through the British criminal justice system.

The answer to terrorism is to treat it like an ordinary criminal act rather than an extraordinary behaviour. We seem able to do that with teenage terrorists at home, it is not clear why we cannot with Begum.

Raffaello Pantucci is a senior associate fellow at the Royal United Services Institute

Have been slow in posting and also been slow in production of late. A few longer projects that have been working on which should land soon. And a few shorter ones which are just taking a while to land. For the time being, here is my latest for local newspaper the Straits Times, looking at China-Pakistan relations.

The rising costs of China’s Pakistan project

Last month, the obscure Sindhudesh Revolutionary Army (SRA) claimed a pair of attacks against Chinese businessmen going about their affairs in the Pakistani port city of Karachi. A bomb was detonated near a restaurateur, while a businessman and his interpreter were shot at as they looked around a car showroom.

The random attacks were not surprising, with the group being one of a number that have targeted the growing Chinese population in Pakistan, but the decision to attack so brazenly in Pakistan’s largest city showed the group’s growing ambition.

Touted as the jewel in the crown of Chinese President Xi Jinping’s Belt and Road Initiative, Pakistan is increasingly emblematic of the problems China faces as it invests in its periphery.

Announced shortly before Mr Xi’s speech in September 2013, when he inaugurated the Belt and Road concept, the China-Pakistan Economic Corridor (CPEC) was quickly wrapped into the broader concept and elevated within the broader vision.

The idea was to create a web of economic links, trade and projects between China and Pakistan that would build on the historical relationship between the “iron brothers”.

But this proximity has brought China problems in many different forms. There have been historical concerns of militant Uighurs using Pakistan as a base to target China, though these seem much reduced now. Currently, the most prominent, direct security threat is illustrated through the attacks on Chinese businessmen in Karachi. The growing Chinese footprint has created a new range of potential targets for local militants.

In some cases, the perpetrators are internationally minded terrorists affiliated with Al-Qaeda or the Islamic State in Iraq and Syria who are eager to strike at foreigners to draw more attention to their cause.

LOCAL MILITANT ATTACKS

But more frequently, the danger in Pakistan comes from local separatist militants who are angry at the government, and see Chinese support as justification for targeting Chinese nationals.

The SRA is one such group. Focused on the liberation struggle of the Sindhi people, the group is active in the Sindh region of Pakistan where Karachi is located. Last July, the SRA announced a partnership with the Baloch Raji Ajoi Sangar, a grouping of organisations from neighbouring Baluchistan province.

Both the Baluchi and Sindhi groups have repeatedly targeted Chinese nationals and interests in the country – including, in the Baluchi group’s case, ambitious targets like the Chinese consulate in Karachi, the Karachi Stock Exchange, busloads of Chinese engineers and the Pearl Continental Hotel.

The attack on the hotel in May 2019 which left five people dead particularly highlighted local anger at Chinese investment. The hotel, which was established to cater to the business community that was expected to be drawn to the region, was built near the port in Gwadar, Baluchistan, a project that was first proposed during a 2001 visit to Pakistan by then Chinese Premier Zhu Rongji.

Between 2007 and 2013, the port was run by Singapore’s PSA Corp, though it relinquished the contract to a Chinese operator, having concluded that the security situation was too difficult.

Since then, the project has become the focus of discussion for armchair strategists who see it as a key point in an alternative route for Chinese access to the warm waters of the Gulf, bypassing the crowded Malacca Strait.

In reality, Gwadar is a huge underused port whose practical use is questionable even to Pakistan. Disconnected from major trading routes, adjacent to the already well-connected and thriving port of Karachi, Gwadar appears to be a white elephant, which China finds itself having to support nevertheless, given the investment and effort that has been put into it. The security situation has always been complicated, leading most recently to a discussion about trying to build a wall around the site.

These complications come not only from the fact that the much-discussed investment has not materialised in the way that was expected, but also from the fact that locals do not feel like they are getting any value from the port.

In fact, groups like the Baloch Raji Ajoi Sangar see the port as an expression of the predatory Pakistani state, supported by China, merely stealing from their territory once again.

Pakistan has long been aware of this security problem and has sought to address it through mobilising thousands of soldiers to protect Chinese nationals or projects within the country. Yet, this has not stopped repeated attacks and rising rhetoric from separatist groups in the country, making China an adversary on a par with the Pakistani state.

SUNK COSTS, RISING DEBTS

The clash is one that has become entangled with larger South Asian rows, with accusations that India is fuelling the separatists’ fight against China in Pakistan, further showing how Beijing is getting dragged into toxic local dynamics.

It is not the only way in which China now finds itself ever more deeply embroiled in Pakistan. Last month, as Pakistan faced a payments crisis after Saudi Arabia called in its debts, Beijing came to Islamabad’s rescue offering a US$1.5 billion (S$2 billion) extension to a currency swap deal. Pakistan was then able to use this to pay off the Saudi debt, but it merely strengthened China’s place as Pakistan’s largest creditor.

With reports of CPEC investments going into tens of billions of dollars, Beijing is finding itself holding large amounts of debt in a country struggling with payments and security issues.

Meanwhile, the pace of CPEC projects has slowed down, reflecting hesitation by companies as well as local managerial problems.

Furthermore, growing pressure from the United States on Pakistan has raised questions among some in Beijing about Islamabad’s commitment to the relationship, while escalating tensions with India have only made it harder to get Pakistan to focus on its immediate problems.

Part of Beijing’s answer came last October, when a new ambassador was deployed. He was not chosen from the cadre of officers from the Chinese Ministry of Foreign Affairs who are focused on South Asia, but was instead a party official from Guangxi. The decision reflects a desire by China to see a strong party hand steering the relationship forward on the ground.

The Pakistani side has reciprocated by growing the number of military officers in prominent roles managing the CPEC. Beijing has always preferred the reliability of the Pakistani military – often referred to as the backbone of the China-Pakistan relationship – to Islamabad’s feckless political class.

But the problem is that this places a massive infrastructural and economic undertaking on military officers. These are competent men in many ways, but not those usually responsible for complex economic projects.

And there is only so much soldiers can do even on security matters. On Jan 3, ISIS militants abducted and killed 11 Shi’ite coal miners in Quetta, capital of Baluchistan. Even though the Chinese were not the targets this time, the deadly attack has cast a further shadow and highlighted sectarian tensions in a Pakistani province where Chinese nationals and CPEC projects have been repeatedly targeted.

Another sign that relations between the “iron brothers” are not well: The annual bilateral meeting of the CPEC’s top decision-making body, the Joint Cooperation Committee (which brings together key Pakistani planners with their Chinese counterparts), has been postponed again after the last one in November 2019. Although the delays were initially attributed to Covid-19, the more recent setbacks are reportedly linked to disagreements over Chinese financing and delays in getting the special economic zones up and running.

Covid-19, however, did not appear to hinder China’s defence minister from visiting Pakistan last month to sign a memorandum of understanding between the two countries to counter a similar agreement signed between the US and India.

The CPEC is regularly referred to as the keynote project of the Belt and Road Initiative.

But as seen in the problems China is experiencing, it is shaping up to be a warning sign of what happens when Beijing invests heavily in countries with histories of ethnic and religious strife and insurgencies. Local corruption, instability and less-than-effective workforces can all create situations where large volumes of money get absorbed with little immediate return.

While this matters little in boom times, it becomes more questionable when budgets tighten. As Western countries have found, the expansion of one’s geopolitical footprint comes at a price.

Raffaello Pantucci is a senior fellow at the S. Rajaratnam School of International Studies and has a forthcoming book looking at China’s relations with Central Asia that draws on almost a decade’s worth of travel and research across the region.