Archive for the ‘Nikkei Asia Review’ Category

Another piece for the excellent Nikkei Asian Review, this time trying to make the point that there is a missed opportunity for the west in Central Asia. It is a not a new point for me, but it does seem to be something which is all the more relevant given current events in Ukraine. The title is a bit more blunt about the great gaming element of the intended idea than was meant, the idea was really about getting the west to focus on the region and highlight the region’s agency a bit more.

Western powers should exploit Central Asia’s unease over Ukraine war

Kazakhstan and Uzbekistan have both distanced themselves from Moscow

Demonstrators take part in an anti-war rally in support of Ukraine in Almaty on Mar. 6: Kazakhstan has allowed large protests against the war.   © Reuters

Raffaello Pantucci is a senior fellow at the S. Rajaratnam School of International Studies in Singapore and author of the forthcoming “Sinostan: China’s Inadvertent Empire” (Oxford University Press, April 2022).

Russia’s invasion of Ukraine has been received differently around the world, especially in Central Asia, where the two most powerful countries have both expressed clear signs of concern at Moscow’s behavior. There is an opportunity here for the West if they have the agility to take it.

While the modern countries of Central Asia were among the last to separate from the Soviet Union, since then, they have embraced independence and sought to forge a sense of nationhood. Still, when it comes to Russia and its potential to behave like an overbearing bully, there remains a lurking sense of trepidation, even though Russia remains vital to their development, security and future.

Nowhere is this more true than in Kazakhstan, where a similar narrative that Russia has used to invade Ukraine twice and Georgia can also be applied.

In the north of Kazakhstan, there is an ethnic Russian community that makes up around 20% of Kazakhstan’s total population. At the same time, Vladimir Putin sometimes takes digs at Kazakhstan’s legitimacy as a state; a theme periodically picked up by Russian nationalist commentators and officials who like to claim that Kazakhstan or at least part of it is theirs.

While few in Central Asia were surprised by Moscow’s decision to invade Ukraine, this had not diminished their horror at what was unfolding there. For the region, Ukraine was an important partner as well as a fellow former Soviet state.

Central Asia has expressed concern about Russian behavior before. In 2008, they criticized Russia’s actions in Georgia, while in 2014, they sought to try to find ways of encouraging Moscow to peacefully resolve its dispute with Ukraine. In both instances, Russia sought to pressure the Central Asian powers to back its actions.

This time around, the Central Asian powers have been even more vocal. While Tajikistan and Turkmenistan have stayed predictably quiet, the Kyrgyz have made positive remarks seemingly supportive of Putin’s actions but also allowed protests against the war. But the two most powerful states, Kazakhstan and Uzbekistan, have made clear signs of wanting to highlight their independence.

Neither country has acceded to Russia’s request to formally recognize the regions of Donetsk and Luhansk. Kazakhstan has allowed large protests against the war, sent aid to Ukraine and President Kassym-Jomart Tokayev has held talks with Putin and Ukraine President Volodymyr Zelenskyy. In Uzbekistan, while public opposition to the war has been more limited, influential Foreign Minister Abdulaziz Kamilov declared his support for the territorial integrity of Ukraine.

Moscow has also not been oblivious to the mood in Central Asia. In mid-March, Russia held large-scale training exercises in Tajikistan, while Russia’s Minister of Economic Development Maxim Reshetnikov spoke at a Tashkent trade event highlighting the opportunities for Uzbekistan in the wake of Western sanctions on Russia, as well as encouraging Uzbekistan to play a more active role in Eurasian Economic Union.

Central Asians only need to look back to last August at the fall of Kabul to remember how Moscow rushed in with military aid and support to defend themselves from the unfolding chaos in Afghanistan, while it was Russian soldiers who were called on by Kazakhstan to help stabilize the country during violent protests at the beginning of the year.

Collective Security Treaty Organization peacekeepers are on guard in Almaty on Jan. 11: It was Russian soldiers who were called on by Kazakhstan to help stabilize the country. (Handout photo from Russian Defense Ministry Press Service)   © AP

All of which makes the signals from Kazakhstan and Uzbekistan over Ukraine all the more striking. While the criticism may be tempered, it is nevertheless a sign that both countries are eager to show they are not in lockstep with Moscow.

The most recent sign of this was Deputy Foreign Minister Roman Vassilenko telling German newspaper Die Welt last week that Kazakhstan did not want to be on the wrong side of a new Iron Curtain and would welcome any companies who were finding themselves obliged to exit Russia as a result of Western sanctions.

This was an opportunistic statement and a clear message that Kazakhstan has little desire to be consigned to simply being part of the Russian space involved in a geopolitical conflict with the West. Instead, Kazakhstan wants to maintain its links with the West, something reinforced by the reforms President Tokayev has announced in the wake of the civil unrest earlier in the year.

All of this presents an interesting opportunity for Western countries if they can figure out how to take it. Central Asia’s two most influential players have hinted at a desire to assert their independence from Russia, but Western powers have largely taken their eyes off Central Asia in the wake of the withdrawal from Afghanistan. This disinterest was compounded by the unrest in Kazakhstan earlier in the year, which highlighted the region’s volatility, as well as the fact that a tendency toward repression still exists.

For Western powers eager to find ways of shaping the new global order to their advantage, however, Central Asia is an interesting theater to explore. Increased Western support for Central Asia would create some complexity for Russia on its other flank while also helping encourage regional powers to continue on their stated paths of greater openness, governance and the rule of law.

More catch up posting from last month, this time a short piece for the wonderful Nikkei Asian Review looking at how Central Asia is likely to suffer from the chaos generated by Russia’s invasion of Ukraine. Have a few more since this which make similar points but through different lenses, but for now enjoy this.

Central Asia braces for economic catastrophe

Sanctions aimed at Russia will have serious knock-on effects

Migrant workers from Uzbekistan collect potatoes at an agrarian field in Beryozovka near Russia’s Siberian city of Krasnoyarsk: their remittances to their families back home are a crucial source of income.   © Reuters

Raffaello Pantucci is a senior fellow at the S. Rajaratnam School of International Studies in Singapore and author of the forthcoming “Sinostan: China’s Inadvertent Empire” (Oxford University Press, April 2022).

Across what is still referred to as the former Soviet space, there has been a sharp intake of breath. While many have grown accustomed to overbearing Russian behavior, few expected the dismemberment of Ukraine.

For Central Asia, the consequences go deeper than worrying whether they might be next. The intertwining of their economies with Russia means the drastic sanctions being imposed on Moscow will likely hit them too. And for a region that is increasingly being targeted by the West, this will further exacerbate economic suffering.

It is not so long ago that Central Asia was actively calling for greater Russian military support. Following the U.S. withdrawal from Afghanistan last August, Russian forces rushed in to undertake joint training exercises with Tajik and Uzbek forces, while Moscow sped through military sales to customers across the region.

In January, Kazakhstan President Kassym-Jomart Tokayev called on Russian forces, under the auspices of the Collective Security Treaty Organization, to help reestablish control in the wake of violent protests wracking his country.

For Central Asians, Russia remains an essential security partner. While China is seen as ascendant, it is Russia that remains hugely significant in political, economic and security terms.

The truth is that while Beijing may be the rising power, China tends to be quite passive, as its responses to the crises in Kazakhstan and Afghanistan have shown. Similarly now with Ukraine, Beijing appears largely content to talk rather than actually try to do something on the ground.

While China sees Central Asia as five nations it wants to do business with, Russia takes a more paternalistic view, in some cases even questioning their viability as states. Vladimir Putin has on occasion questioned Kazakhstan’s nation status, just as he has with Ukraine. This worries Central Asians.

Take Kazakhstan, which has a population of around 3.5 million ethnic Russians, nearly 20% of its population, concentrated near its border with Russia. It is very easy to envisage a scenario where Moscow stakes a claim to these people back in much the same way as in Ukraine.

Russia’s invasion of Georgia in 2008 first crystallized this concern. At the time, Moscow not only sought regional endorsement through the Shanghai Cooperation Organization, but recognition of the two breakaway republics of Abkhazia and South Ossetia that Moscow claimed it had gone in to defend. This appeal was roundly rejected, with China in particular horrified by the precedent that Moscow was setting.

Fast forward to today, and while it is clear that Central Asians are uneasy, there is a lot less condemnation. In fact, in a conversation with President Putin, Kyrgyz President Sadyr Japarov appeared to support Russia’s position, prompting Ukraine President Volodymyr Zelenskiy to withdraw his ambassador from the capital Bishkek.

Vladimir Putin shakes hands with Sadyr Japarov during a meeting in Strelna on the outskirts of Saint Petersburg, in December 2021: the Kyrgyz President appeared to support Russia’s position. (Handout photo from Kremlin Press Office)    © Reuters

Kazakhstan and Uzbekistan both found themselves pulled into the information war, with both being forced to deny that they supported Russia’s actions in Ukraine and Kazakhstan that they had been asked to participate in the fighting by Moscow. In Uzbekistan, the government issued a statement pointing out that any national who was found to be fighting for a foreign army would be prosecuted upon return home.

Ultimately though, it will be economic questions that will dominate minds across Central Asia. Millions of Central Asian citizens work in Russia, and their remittances to their families back home are a crucial source of income, something that will be hit by the abrupt drop in the value of the ruble.

The collapse in the value of the Russian currency has also led to massive knock-on devaluations across Central Asia as markets reflect on the consequences of Russia’s exclusion from the international economy.

Russia is a major investor and partner to all five countries. Russia has reportedly invested around $40 billion in Kazakhstan alone since the fall of the Soviet Union, while Kazakhstan and Kyrgyzstan are bound intimately to the Russian economy as members of the Eurasian Economic Union.

All of this means that when Russia suffers economically, Central Asia feels it. Now, the region is bracing for the worst. Central Asia may have experienced something similar following the 2014 sanctions leveled against Russia, but this time the hit is likely to be exponentially harder.

All of which comes at a moment of great flux in a region still suffering from the fallout from COVID. Add to that, Kazakhstan is still recovering from the national unrest that rocked the country in January, Turkmenistan is in the midst of a leadership transition, and Tajikistan appears to be on the cusp of something similar.

Many geostrategists may be tempted to conclude that Beijing is likely to benefit. And there is no doubt that this will strengthen Chinese options in the region. But the reality is that Central Asia will still be very much tied to Russia, with all the consequent loss of income that will entail. Central Asian migrant labor will struggle to find the same opportunities in other countries.

Now entirely encircled by countries that are being targeted by escalating Western sanctions — Afghanistan, Iran, China and Russia — Central Asia is increasingly finding itself between an economic hard place and a politically precarious one.

Pushed into a corner not of its choosing, the collateral damage to Central Asia from Putin’s Ukrainian invasion is likely to be considerable.

More catch up posting from last month, this time again a look forwards on what the year holds for Afghanistan and Central Asia for Nikkei Asian Review. Wasn’t expecting the chaos in Kazakhstan that followed, but I think the broader trends pointed to will hold and the trouble in Kazakhstan will play into it as well.

2022 look ahead: Central Asia will cement its turn against the West

Expect China and Russia to step in and take advantage

U.S. Marines are on guard during an evacuation at Hamid Karzai International Airport in Kabul on Aug. 20: policymakers in Washington have decided to leave the morass of middle Eurasia to others. (Handout photo from U.S. Marine Corps)   © Reuters

Raffaello Pantucci is a senior fellow at the S. Rajaratnam School of International Studies in Singapore and author of the forthcoming “Sinostan: China’s Inadvertent Empire (Oxford University Press, April 2022).”

While this year may have appeared momentous, the truth is that we have not yet seen the full effect of the Taliban taking over in Kabul. This will only emerge as potential opposition forces organize themselves, the regional geopolitics fall into place and the unfolding economic catastrophe starts to bite.

At a wider level, the impact of the American withdrawal from the region will also be felt as the region is pushed closer toward Russia, Iran and China as those three powers continue to square off in an anti-Western geopolitical alignment.

One result of today’s intense and never-ending media cycle is the difficulty to judge the gap between cause and effect. If a particular outcome has not occurred within a day or so, the issue slips from the news pages and we forget about it, only to find ourselves shocked when it later reemerges.

After Afghanistan did not slip back into the brutal civil war that many expected, much of the world’s attention moved elsewhere. Instead, a slow-moving economic crisis has created a catastrophe largely taking place out of our field of vision. But the ramifications of this crisis will emerge.

First, the parlous economic situation will drive many people to seek a life outside Afghanistan. While most will head south to Pakistan or over the border into Iran and even onward to Europe, a growing number of Afghans will flee into the Central Asian region, most likely Tajikistan.

People from Afghanistan cross into the Pakistan-Afghanistan border town of Chaman, Pakistan, on Sept. 7: the parlous economic situation will drive many people to seek a life outside Afghanistan.   © Reuters

Second, the Taliban is unlikely to feel the need to contain the country’s narcotics industry, whether by design or lack of capability. Given its status as a high-value cash crop, we can expect more Afghans to turn toward narcotics production, with consequences for criminal networks and corruption across Central Asia, as well as greater fragmentation within Afghanistan.

Third, we can expect some sort of opposition to the Taliban to materialize beyond Islamic State in Khorasan Province (ISKP), which has so far been the only group to consistently target the new government.

While there is some truth to rumors of former regime soldiers and other disaffected groups joining ISKP, the group is unlikely to garner much in the way of international support.

This suggests a vacuum that will eventually be filled by a constellation of the various factions who were ejected from Kabul in August. Currently, the most likely candidates appear to be gathering in Dushanbe, Tajikistan, although a credible and effective leader has yet to emerge.

But the problems inside Afghanistan will pale in comparison with the larger geostrategic shifts taking place in the wake of the U.S. withdrawal.

While many in Washington were at pains to deny it, there was little hiding the fact that the decision to withdraw from Afghanistan was more about enabling the U.S. to focus more attention on the Indo-Pacific. It seems clear that policymakers in Washington have decided to leave the morass of middle Eurasia to others.

This does not mean that the West has completely withdrawn from the region. The U.S. and Europe will continue to be major investors and providers of aid and other forms of support across the region. But it does mean that Central Asia will receive less attention from Washington and Brussels.

Expect China and Russia to step in and take active advantage to affirm their increasing control of the Eurasian heartland.

Bordered by China, Russia, Iran, all of which suffer varying degrees of Western sanctions, Afghanistan and Central Asia will be almost entirely surrounded by countries whose relations with Washington are hostile.

That will likely result in a very hard-nosed form of geopolitics dominating regional discourse. Relationships will be entirely transactional and based around ensuring stability at whatever cost.

At the same time, we are likely to see a fairly cynical approach as to how this is achieved, with China and Russia increasingly refusing to go against each other. Unlike in the past, the confrontation with the West has escalated to the point that Moscow and Beijing see a greater strategic utility in keeping differences — Russia’s 2008 intervention in Georgia, for example — out of public view.

The fact that Russian President Vladimir Putin and Chinese counterpart Xi Jinping are scheduled to meet early next year, the first such in-person summit for President Xi in almost two years, is a reflection of how close the relationship has become.

At an economic level too, the continued economic tightening resulting from COVID-19 is likely to strengthen Beijing’s hand in Central Asia, where many regional economies are already bound to China through investment and trade links.

The current COVID-related stasis favors Chinese trade, which is increasingly delivered through online platforms that are becoming ubiquitous across the Eurasian space and can be delivered along rail and road routes that extend outward from China.

In contrast, shipping goods into China is becoming ever harder, though raw materials seem able to continue to flow without too much difficulty.

The net result is an increasingly one-way Belt and Road Initiative, which will only serve to strengthen China’s economic ties across the region and make countries more dependent on Beijing in ways that will ultimately not help their own economies to diversify.

This is likely to be the story of 2022 for Afghanistan and Central Asia: a potentially unstable Afghanistan alongside a strengthening of Beijing and Moscow’s hands across the region. That is when the gradual freezing of the West from the Eurasian heartland will really start to harden.

It is a new year and there is a lot going on, something that I mean in every way. A lot of big projects landing this year, as well as various substantial papers. That on top of stuff in life in general means it is going to be very busy, and it seems as though posting material on here has already fallen foul of my scheduling! Am going to try to catch up slowly on myself, but have quite a few bits to do. Am also going to try to get back to posting my media comment highlights as well, but that is going to be an adventure for another day. First of all, a piece for the ever wonderful Nikkei Asian Review which ran back in early December before the current chaos in Kazakhstan. I have a lot more on those events which will come in due course, and of course all of this China-Central Asia writing is hopefully whetting your appetite for the forthcoming book, Sinostan: China’s Inadvertent Empire, which should be landing in April this year (and if you are so minded, can be pre-ordered here). A lot more on this to come as you can imagine.

Ties that bind Kazakhstan to China are starting to unravel

Frustrations with Beijing are becoming increasingly visible

Nursultan Nazarbayev, right, and Xi Jinping attend a news briefing after signing bilateral documents in Astana in September 2013: Kazakhstan’s view on its connections to China is not as rosy as they once were.   © Reuters

Raffaello Pantucci is a senior fellow at the S. Rajaratnam School of International Studies in Singapore and author of the forthcoming “Sinostan: China’s Inadvertent Empire (Oxford University Press, April 2022).”

When President Xi Jinping launched China’s flagship Belt and Road Initiative in 2013, he chose to do it in the Kazakhstan capital of Astana, where the concept of connectivity with China has been playing out for years.

Since then, Astana has changed its name to Nursultan, and Kazakhstan’s view on its connections to China is not as rosy as they were when the Silk Road Economic Belt was launched.

Among the countries that most warmly welcomed the Belt and Road Initiative, Kazakhstan had already been embracing Chinese investment for some time. A year after Xi’s speech, then-President Nursultan Nazarbayev inaugurated his own national vision Nurly Zhol, or Bright Path, which consciously sought to build on what was then called the Silk Road Economic Belt that President Xi had announced in Astana. Kazakhstan predicated its national development on China’s new foreign policy vision.

Yet, nearly a decade later, Kazakhstan is finding binding itself tightly to Beijing comes with as many problems as benefits.

Some of these issues are long-standing. In mid-November, Kazakh authorities reported that the water level in Lake Balkhash will fall to a critical point by 2040 unless something urgent is done, in particular at the consumer end of the river Ile in China. Kazakh authorities are developing plans, but most of them involve requiring China to curb its water consumption. Shrinking aquifers are not a new problem, but it has a growing urgency.

This is not the only waterway that Kazakhstan has problems with. Its shared rivers with Russia and Uzbekistan also suffer from similar problems, but the Chinese water consumption is causing the drying up of a critical lake.

But while too much Kazakh water is flowing into China, not enough Kazakh goods are. According to Kazakh data, between January and September 2021, food exports to China dropped 78%.

By March, a bottleneck of some 12,000 railcars had accumulated, and long queues of trucks were stopped at the border as stringent Chinese COVID-19 regulations prevented Kazakh products from getting in at the same rate as they were before.

Trains loaded with containers at the Altynkol railway station near the border with China in Kazakhstan, pictured on Oct. 26: stringent Chinese COVID-19 regulations prevented Kazakh products from getting in.   © Reuters

To the extreme irritation of Kazakh producers, transit traffic passing through Kazakhstan to and from China is facing no such delays. In fact, transit traffic has increased. This would seem to violate a key Belt and Road concept, which is supposed to be all about improving trade and connectivity among China’s neighbors first and foremost.

Another aspect of the Belt and Road idea that Central Asian nations have always liked is the idea that as manufacturing got priced out of China, production would move into their countries.

While Kazakhstan was never going to be that attractive for low-end manufacturers, the country did hope to reap some benefit from China’s economic boom, not just in terms of trade but helping its economy advance, and succeed in attracting some Chinese companies across the border.

Beijing’s decision to crack down on cryptocurrency mining has offered an unexpected opportunity for this transfer. Since China moved to shut down bitcoin mining in May, a substantial number of Chinese companies migrated to Kazakhstan, attracted by the country’s tech-friendly policies and cheap electricity.

However, these miners’ electricity consumption was too much for the Kazakh national grid to bear, forcing them to request more electricity from neighboring Russia that has created a new set of tensions with Moscow. This unexpected surge in demand for electricity is not the sort of technology transfer Kazakhstan was hoping for.

There is an element to which blaming all of these problems on the BRI is unfair. Geography can often be seen as the root issue. Similar issues are less relevant in more distant BRI countries. But at the same time, it does show the dangers of being overdependent on China, and how abrupt changes within China can have destabilizing consequences on countries that are heavily dependent. It also quite clearly undermines the win-win narrative often painted at the heart of BRI.

While Beijing continues to show a positive face with Kazakhstan, they have also let the country fall foul of the narratives stirred up during the pandemic. When Moscow started to spread stories that COVID-19 may have emerged from laboratories in Kazakhstan that the U.S. had supported after the dissolution of the Soviet Union, Beijing fanned the flames.

And when a series of articles emerged in the Chinese media suggesting Kazakhstan was, in fact, a historical part of China, leading to an uproar on Kazakh social media, the Chinese embassy in Nursultan did not apologize and instead blamed it all on the West.

All of this for the country where President Xi launched his keynote foreign policy initiative and which has eagerly embraced China as an economic, security and cultural partner.

In some ways, Kazakhstan had no choice, forced by geography to be bound to China. But it is slowly finding that the ties that BRI fosters are not necessarily ones that deliver as you expect.

Another post from last month now to catch up on, looking this time at the question of how China and Russia might or might not be cooperating in Afghanistan for the excellent Nikkei Asia Review. It is a broader question which merits closer examination, and should the time emerge I hope to be able to dig into it. Some of the questions raised have touched on elsewhere and will feature in my upcoming book.

What are China and Russia up to in Afghanistan?

A coordinated pattern of engagement is starting to emerge

Members of the Taliban delegation, including its head Abdul Salam Hanafi, Afghan acting Foreign Minister Amir Khan Muttaqi and representative of the Taliban political office Anas Haqqani, attend a media briefing following international talks on Afghanistan in Moscow on Wednesday.   © Reuters

Raffaello Pantucci is a senior fellow at the S. Rajaratnam School of International Studies in Singapore and a senior associate fellow at the Royal United Services Institute in London.

When Russia hosted a meeting with senior Taliban leaders in Moscow this week — after both Vladimir Putin and Xi Jinping sent junior deputies to an earlier G-20 leaders’ meeting on Afghanistan — it raised the question of whether this is part of a broader strategic plan for how Beijing and Moscow plan to work together on the world stage.

Afghanistan represents something of a paradox for both China and Russia. Though fearful of the large American military presence that was on their doorsteps, Moscow and Beijing were secretly happy that Washington was taking responsibility for the security situation on the ground.

Now, irritated at the mess the U.S. has left behind, China and Russia have decided that the way forward is to engage with the Taliban and explore options together. Both engaged publicly with the Taliban long before Kabul fell, and both have left a substantial diplomatic presence since the Taliban took over. At the United Nations, Russia and China have both pushed for Taliban sanctions to be lifted, something highlighted during this week’s Moscow Summit.

China has strengthened its small base in Tajikistan, undertaking a number of bilateral exercises with Tajik special forces, and the Russians have bolstered the Tajik armed forces as well as strengthened their own 7,000-strong military presence there and participated in larger regional exercises with Uzbekistan and Tajikistan.

But it is hard to tell how many of these actions are coordinated, with some reports hinting at Moscow’s frustration at the lack of cooperation with Beijing on the ground in Tajikistan. At the other end of the scale, both have engaged in regular large-scale joint military exercises on Russian soil, including regular exercises overseen by the Shanghai Cooperation Organization (SCO), the Eurasian security pact that includes China, Russia, Kazakhstan, Kyrgyzstan, India, Pakistan and Tajikistan.

This year’s SCO Peace Mission counterterrorism exercise was specifically referred to as relevant to Afghanistan in the Russian media. Chinese media was more circumspect about the links to Afghanistan, but few could miss the connection. It was made particularly explicit during meetings, held shortly before Kabul fell, between the SCO and the Collective Security Treaty Organization (CSTO), a Russian-led military grouping that brings together a range of former Soviet forces.

On the ground in Kabul, there are some divergences. Early on, China and Russia worked together both out front and behind the scenes to try to influence the Taliban government to be inclusive. Russia now seems to have stepped back, while Beijing has leaned in, with China’s ambassador to Afghanistan making loud declarations of aid, then holding a floodlit ceremony at the airport to celebrate its arrival and then present it to his Afghan counterpart.

China has also proven willing to entertain Taliban entreaties for investment. Chinese companies responsible for two large mining projects that had come to a standstill under the previous government are now — at the Taliban’s urging — exploring whether they can restart operations. Discussions are also underway to reopen an air transport corridor with China to facilitate the export of pine nuts, though it is unclear who is going to subsidize the transport costs.

Moscow has not sought to match or offer assistance on any of these actions, instead deciding to restart a parallel international engagement track with the Taliban and other regional partners (including China) and pushing to get the US and west to foot the bill for any reconstruction. This is a way of trying to again influence the Taliban to moderate their behavior and actually build an inclusive government of some sort.

Both Beijing and Moscow recognize that this is going to be a more stable structure, but it seems Moscow is more willing to actually try to do something about it.

The multipoint proposals that China’s Foreign Minister Wang Yi put on the table at the G-20 summit earlier this month were a largely repetitive statement of the obvious: no terrorists from Afghan soil, humanitarian support, no sanctions against the Taliban government. Russian envoy Zamir Kabulov’s contribution showed a far more nuanced and targeted understanding of what needs to be achieved. His tough but engaging diplomacy reflects his long personal history on the issue.

What is missing from all of this is clarity of what division of labor that might exist between Beijing and Moscow. China appears to be publicly hugging the Taliban tighter, while it seems that Moscow is keeping them at one remove.

In turn, Moscow appears to be leading when it comes to the international engagement and recognition that the Taliban crave. On the ground, it is Russia that is providing hard security guarantees in Central Asia and leading on the military exercises. But ultimately it is Chinese investment that everyone is looking for — even though money has been limited, with the spigot unlikely to open up very soon.

It is possible that this is also an echo of the roles that China and Russia see for each other on the world stage. Beijing will use its financial resources to win friends and influence while Russia plays the aggressive leader willing to take risks and provide security backstops.

Russia can benefit from leveraging China’s potential as an investor to get the Taliban to act, while Beijing can step behind Russia when it comes to sharper points of difference. To use a musical analogy, maybe Moscow is the showy frontman while Beijing is providing the deep bass backup that keeps everyone dancing.

More catch up posting now from the previous few weeks. This one was written a little earlier, but ran in Nikkei Asian Review just as Kabul fell after excellent editor Jason pushed it through to be timely. Written in irritation at the overinflated narratives that kept emerging in the wake of Taliban visit to Tianjin, it attracted a surprising amount of attention and generated a lot of subsequent media hits which I post in due course. It is a topic which I have covered a great deal in the past, and is likely to become more relevant as time goes on. There is a whole chapter on China in Afghanistan in my upcoming book, which I have finally seen some draft covers for which is exciting. More on that in due course!

The myth of Chinese investment in Afghanistan

Little evidence that war-torn country is a strategic priority for Beijing

Taliban fighters take control of Afghanistan’s presidential palace in Kabul on Aug. 15: they are certainly not Beijing’s preferred choice.   © AP

Raffaello Pantucci is a senior fellow at the S. Rajaratnam School of International Studies in Singapore and a senior associate fellow at the Royal United Services Institute in London.

Among the many overblown narratives bouncing around amid the chaos of the Taliban victory in Afghanistan is the notion that China is champing at the bit to sweep in and pluck the country’s economic riches once the country has been cleared of its Western impedimenta.

There is no doubt that Beijing’s companies will look at some of the resources in Afghanistan as potential opportunities, but there is little evidence that this is a strategic priority for Beijing. China has played a surprisingly limited economic role in Afghanistan until now, and it is hard to imagine this is going to abruptly change in the face of instability implicit in the wake of the Taliban takeover.

Up until now, Beijing has been able to maintain good relations with both the Afghan government and the Taliban at the same time, and both sides recognize that whoever ends up in charge, China will still be their neighbor. And as the world’s second-largest economy, it is clearly a relationship they hope to benefit from.

This narrative is not new. The Taliban doubtless recall that their own earlier minister of mining was in a meeting with a Chinese delegation in Kabul when the Sept. 11 attacks took place in 2001. Afghans in general been encouraged by the fact that the biggest putative bilateral investment projects in the country since the U.S. invaded have been Chinese.

In 2007, the Metallurgical Corporation of China and Jiangxi Copper won a contract to develop and exploit a copper mine in Mes Aynak, while in 2011, Chinese energy giant China National Petroleum Corp. won a tender for an oil field in Amu Darya in the north of the country, sparking hopes that this might finally bring a measure of economic independence.

Yet the two projects have since stalled, with the Afghan government taking back the Amu Darya concession, while Mes Aynak has become a byword for broken Chinese dreams in Kabul. In both cases, the much-vaunted agreements for all ancillary infrastructure — a railway line, power station and refinery — never materialized.

There is no doubt that Afghanistan’s mineral riches would be attractive to Chinese companies on the lookout for untapped resources to feed insatiable domestic demand. Yes, Chinese companies may have a higher risk tolerance than some of their Western counterparts, but in the wake of two big project failures, why would a potentially more unstable Afghanistan suddenly be more attractive? Beijing might be in discussions with the Taliban, but China has little reason to force its companies into the country.

When it comes to infrastructure, Chinese investment in Afghanistan is also limited. There has been some hospital construction, housing in Kabul, several small-scale factories and some new buildings for Kabul University — and possibly a military base in Badakhshan — but connectivity infrastructure such as roads, bridges, rail and ports has been in short supply.

Chinese construction companies have built roads and more in Afghanistan, but most of this has been done through international institutional financing, rather than being driven by Beijing. Chinese contractors have won competitive bids and delivered them under dangerous circumstances.

As for extending President Xi Jinping’s signature Belt and Road Initiative, the little that has been advanced has been mostly rhetorical or just concepts floated by Beijing to connect the China-Pakistan Economic Corridor with Afghanistan. But as far as it is possible to tell, little economic energy or effort has been put into turning this into reality. Beijing has refurbished some border posts to facilitate the transit of goods between Afghanistan and Pakistan, but this is certainly not the weighty economic infrastructure projects being advanced in Pakistan or North and Central Asia.

The one thing that the Chinese Embassy in Kabul has focused its attention on recently is pine nuts, celebrating the creation of an air corridor to facilitate their export to China. While such opportunities are to be encouraged — they create lots of jobs in what is still a heavily agrarian society — this is hardly a game-changer.

Pine nuts bound for Shanghai are loaded into a Turkish Airlines aircraft at Kabul’s Hamid Karzai International Airport in November 2018: such activities create jobs but are hardly a game-changer.   © Afghan Presidency Press Office/Anadolu Agency/Getty Images

None of this is to dismiss China’s aid efforts in Afghanistan. The key point is that aid has been limited, with the few substantial achievements tending to be driven by Chinese companies and entrepreneurs operating on their own. Notwithstanding serious and high-level Chinese engagement, the Mes Aynak project remains in limbo, suggesting a limit to how far China wants to force its companies to operate within the country.

Moreover, all of this took place while the country was at least substantially under the command of a government that possessed a degree of international accountability and expertise. While past experience has shown a willingness by Chinese companies to engage with the Taliban, they are certainly not Beijing’s preferred choice. The assurances that Chinese investors would need to proceed further will likely take some time to materialize.

The sad truth is that China is a missed economic opportunity for Afghanistan. And there is little chance that the instability that will follow a Taliban takeover is going to change that.

A new outlet for a well-trodden topic. Exploring the China-Pakistan relationship for Nikkei Asian Review, using the recent terrorist atrocity in Pakistan against a busload of Chinese engineers as the way into the topic and the tensions around it between Beijing and Islamabad. It has generated some chatter online which is always good to see, at least someone is reading! Undoubtedly more on this topic to come.

China is a habit that Pakistan cannot break

Ties with Washington further strained by the need to declare fealty to Beijing

Imran Khan, pictured in Beijing in November 2018: the Pakistani Prime Minister is increasingly China’s staunchest defender on the international stage.   © Reuters

An attack on a busload of Chinese workers en route to the Dasu Hydropower plant in Pakistan has once again highlighted the complex precariousness of the relationship between Beijing and Islamabad.

The rapid comment by the Chinese Ministry of Foreign Affairs citing terrorism as the reason, while their Pakistani counterparts suggested an accident of some sort, did little for the dead Chinese engineers and their Pakistani guards. But it did reveal the evident tension between the two powers, in stark contrast to the public rhetoric surrounding their relationship. Rust, it seems, is weakening the bond between these iron brothers.

The most curious aspect of the tension is paradoxically visible in the public displays of fealty from Prime Minister Imran Khan, who is increasingly China’s staunchest defender on the international stage. While it is not surprising that he would agree with his most important ally’s perspective, it seems odd that he feels the need to do so repeatedly in such an ostentatious way.

Many other countries that enjoy strong ties with China have successfully avoided situations requiring them to make such displays.

While the declarations may win favor in Beijing, they are undoubtedly going down badly in Washington. Since U.S. President Joe Biden was sworn in, he has not engaged with his Pakistani counterpart in any public way. The only high-level in-person engagement has been between National Security Adviser Jake Sullivan and his Pakistani counterpart Moeed Yusuf.

At the same time, U.S. Defence Secretary Lloyd Austin has visited Delhi, and Secretary of State Anthony Blinken has hosted India’s Foreign Minister Subrahmanyam Jaishankar in Washington. When Pakistan’s Foreign Minister Shah Mahmood Qureshi visited New York in May, he was able to meet with members of the Senate and Congress, but, publicly at least, there were no meetings with administration officials.

Biden himself has long-held concerns about Pakistan. As vice president in Feb. 2010, Biden told CNN that Pakistan was a large country with a “significant minority” that was radicalized and was not “a completely functional democracy in the sense we think about it,” adding that its status as a nuclear power was his biggest “foreign policy concern.”

As Washington pivots from the war on terrorism to confrontation with Beijing, Islamabad risks being left stranded in the middle. Always an awkward U.S. partner in Afghanistan, the U.S. withdrawal means this is no longer a primary consideration for Washington.

In the years ahead, Washington is likely to look at Islamabad through the lens of its growing tensions with Beijing, with Pakistan seen to be sitting firmly on China’s side.

All of this comes as Islamabad has been trying to signal, often through U.K. contacts, that it is eager to find ways of building a more constructive relationship with Washington. The problem is that Pakistan is no longer as important to Washington as it once was, especially as it is seen as being unlikely to do much to support attempts to contain China.

Islamabad has, however, been playing fast and loose when it comes to its relationship with Beijing. Articles in the Pakistan media discussing the China-Pakistan relationship are often peppered with off-the-record dissenting government voices hinting that significant parts of the Pakistani establishment feel they are locked in a bad relationship. Perhaps this explains why Beijing saw the need to send a new ambassador with strong party links, rather than the traditional South Asia expert.

People wheel a gurney towards an ambulance outside a hospital in Dasu after a bus with Chinese nationals on board plunged into a ravine following a blast on July 14.   © Reuters

Irritations are also building on the security front with the attack on the busload of engineers in Dasu coming after a separate incident in Quetta which came close to hitting the Chinese Ambassador, as well as earlier targeted attacks by Baluchi and Sindhi separatists on Chinese nationals and projects. Beijing is doubtless not shocked by these, but the loss of life in the Dasu incident was a step too far.

Signs that Beijing is losing patience include thunderous Global Times editorials warning Pakistan to get its house in order or China will explore deploying forces. Officially deploying a team of investigators immediately to look into the attack and being quicker than Pakistan to blame terrorists for the Dasu attack all illustrate a willingness by Beijing to start assuming the worst. The decision to cancel the next meeting of the Ministerial Joint Coordination Committee of the China Pakistan Economic Corridor is the clearest signal Beijing can send about its displeasure.

This hardly speaks to a relationship that is “higher than the mountains and deeper than the oceans” as diplomats on both sides like to sing. It speaks instead of a relationship where Beijing is increasingly frustrated with a partner that has failed to deliver and appears preoccupied with mending fences with China’s principal adversary.

The bigger problem for Islamabad, however, is that their attempts to get Washington’s attention are not getting through, putting them in the position of having to continually emphasize their fealty to Beijing. Unfortunately for Pakistan, such behavior will only further deepen the rupture with Washington.

Islamabad has backed itself into a complicated position that it will struggle to extricate itself from anytime soon.

Raffaello Pantucci is a senior fellow at the S. Rajaratnam School of International Studies in Singapore and a senior associate fellow at the Royal United Services Institute in London.