Archive for the ‘Oxus Society’ Category

Its been a busy week on various fronts, but in particular in work on China-Afghanistan. But it seems apt given the SCO celebrated its second decade. Have a couple more pieces to post from the week, but for the time being here is a piece for the excellent Oxus Society (established by Edward to whom I am very grateful for publishing this) which draws on my various experiences meeting with the Organization over the years. You will find a lot more of this coming in the book which is due out early next year, but for the time being enjoy. As ever comments, criticisms, corrections welcome.

The SCO Turns Twenty

The Shanghai Cooperation Organization (SCO) was born almost exactly two decades ago, on June 15, 2001 at a glittering event overlooking the Huangpu River in Shanghai. Celebrating the birth, President Jiang Zemin articulated a vision for the organization that spanned everything from counter-terrorism, regional trade agreements, to pragmatism, solidarity, a pioneering spirit and openness. The last was delivered without a sense of irony to a room of leaders who (for the most part) had taken power with little public ratification. The key, President Jiang said, was to maintain the ‘Shanghai Spirit’ that had brought them all to where they were today.

This was very different to the birth story I was told almost exactly a decade later sitting in the Kyrgyz Ministry of Foreign Affairs. We were told that the SCO was “a baby that was born of a time.” It was an “illegally born child” to its parents China and Russia who could not agree on a way forward, hence they decided to form a family called the SCO. But like any family, our Kyrgyz interlocutor informed us, there were “certain frictions” usually involving money, and over time there was “psychological exhaustion by the parents.” A more cynical view that over time I discovered was more typical from the region to what I would hear in Beijing.

A year later, I had my first physical encounter with the organization. After chasing various contacts and colleagues in Shanghai, I fixed a meeting at the Organization’s headquarters in Beijing with a fellow researcher. We had aimed to meet with the Secretary General, but ended up getting passed along to some lower-level diplomats. A Kazakh and a Russian official who were posted to the Organization from their respective Ministries of Foreign Affairs. The more elderly Russian was in a playful mood and clearly enjoying what he saw as a sinecure role. 

Sat in a grand and slightly dusty meeting room which had a cabinet full of football trophies in the corner, we listened as he expounded about the organization’s processes and procedures downplaying any of the more menacing aspects. Projects were nascent and slow moving, he told us. Everything was done by consensus. Terrorism – something he described using the Chinese phrasing of the Three Evils (terrorism, separatism and religious extremism) – was a major concern. Economic aspects were still under discussion. The overriding message we got from them was nothing to see here, move along, move along.

The overriding question from all of these encounters was what really was the point and aim of this organization? Western diplomats we met in Beijing or Central Asian capitals would largely rubbish the organization as a large talking shop. Chinese officials we spoke to, however, would talk about it as a foundational element in their vision for Eurasia and the world. Westerners, they would tell us, missed the gentle consensus building that the SCO brought to the table. As a Chinese expert at one of the more influential think tanks in Beijing told me when I asked what the SCO had achieved “to not do anything is to do everything.”

The initial seed of the SCO was planted in the wake of the Cold War. As the Soviet Union fell apart, there was an imperative for China to clarify its western borders. China had shared a long, porous and remote border with the Soviet Union. Once China was suddenly confronted with three new border countries, this vagueness no longer worked. From this was born the idea of establishing a grouping to discuss de-militarization and border delineation between China and the new states of Russia, Kazakhstan, Kyrgyzstan and Tajikistan. Meeting first in Shanghai in 1996, the grouping was imaginatively called the Shanghai Five, upgraded later to the SCO when Uzbekistan joined at the glittering event in Shanghai.

China’s vision was larger, however, than just borders and security. It was about economic connectivity and prosperity across the entire region. The larger concept could be found in a visit in 1994 by then-Premier Li Peng to Central Asia, when he swept through all of the capitals except Tajikistan. China was opening itself up after the setback of the 1989 Tiananmen Square massacres and Premier Li had been at the forefront of promoting the new China, taking groups of businessmen around with him and trying to encourage western firms to come and invest. Central Asia was critical both in terms of being a border region to China, but also given the deep cross-border security concerns that existed with Beijing worried about Uyghur dissidents using the region as a base to launch attacks within China. 

This blend of security and prosperity is what has been at the heart of Chinese interests in the SCO. Focusing on terrorist threats in particular is something that all of the member states find themselves agreeing on, and economic prosperity is always appreciated. Counter-terrorism in particular developed its own home. 

The Regional Anti-Terrorism Structure (RATS), first announced in 2001, and then formally opened in Tashkent in 2004 was established as a hub for counter-terrorism and counter-extremism activity. When I visited in 2012, I found a sleepy institution in a bright pink building where the Chinese officials refused to speak Mandarin to me, while their bosses told me about the meetings and conferences their institution hosted and some of them fell asleep during our meeting. This dozy welcome, however, masked the institution’s role in creating a common roster of enemies and the growing legal harmonization in counter-terrorism and countering online extremism that RATS helped foster. 

Counter-terrorism has also provided China with a way into other forms of engagement. China pushed forwards the development of a training center in Shanghai which offered courses for Interior and Border Guard forces across the region – providing an opportunity to develop relationships at multiple levels in local security forces. Through the SCO it has hosted and partnered with numerous regional partner forces on joint military exercises. The regular large-scale military exercises provide not only an opportunity to strengthen bilateral relations, but also for Chinese forces to practice with the vastly more experienced Russian forces. It has also increasingly given China an opportunity to show-case some of their military hardware – in particular drones – to potential customers. 

But the organization has over time developed a much wider range of activities beyond this, creating an entire cultural roster of actions and events to encourage what they describe as the ‘Shanghai Spirit.’ A whole series of cultural activities bringing SCO nationals together. A marathon, a film festival, young businessmen forums, a traveling festival of culture which I once came across by chance in Tashkent which included exhibitions from key cities in each member state, a university exchange program which allows for post-graduate students to spend a year at a university in another member state university offer a sense of the SCO’s broader activities. 

Not everything Beijing wanted to achieve has succeeded. Notwithstanding putting almost one billion dollars on offer, the idea of an SCO Development Bank or Fund has never taken off. Repeated efforts to establish an SCO Free Trade Area have gone nowhere. And after having tried to get the Organization to do something specific about Afghanistan rather than just host meetings, China seemed to accept it was too complicated. In 2016, China established a new mini-lateral entity called the Quadrilateral Cooperation and Coordination Mechanism (QCCM) that brought together the Chiefs of Army Staff of Afghanistan, China, Pakistan and Tajikistan. Notwithstanding continued Chinese efforts, they realized nothing was moving forwards within the SCO on Afghanistan and so they built a parallel entity to handle their direct security concerns. This is not to say that China has not continued to push the idea of the SCO doing more in Afghanistan forwards – most recently, after meeting with his Central Asian counterparts in May 2021, Chinese Foreign Minister Wang Yi once again hammered home the point that the Organization needed to do something about Afghanistan. Everyone agreed, though it is still not clear anything will happen.

But China’s relentless persistence with the Organization has paid dividends. And the Organization has only continued to grow over time, now also encompassing Pakistan and India, with Iran a regular courter. Afghanistan, Belarus, Iran and Mongolia are official Observer states, while Armenia, Azerbaijan, Cambodia, Nepal, Sri Lanka and Turkey are Dialogue Partners. The Organization is growing and at current count claims to be the largest regional organization by population and geographical coverage – representing about half of the world’s population. Whatever Jiang Zemin released in Shanghai in 2001 has proven to be attractive. 

Beijing has also shown itself to be highly dynamic through the Organization, echoing in many ways their global growth in other areas as well. When one path is blocked they seem to find another. Having been repeatedly stymied in their grand economic goals, China has now managed to start to advance them through its tech and digital giants who have started to work with the SCO to advance China’s Digital Silk Road. Chinese applications, Chinese online markets, Chinese online health and educational platforms, have all become increasingly dominant within the SCO. Central Asians working with the Organization tell me working with Chinese tech is one of their biggest tasks. The capstone of all of this activity was laid in November 2020 with the establishment of the China-SCO Development Zone in Qingdao, which was inaugurated with $8.6 billion worth of projects focusing on China’s digital and tech sector.

China’s SCO partners were not very visible during the event, however, but had supported its establishment during an earlier Summit in Qingdao in 2018. They have continued to attend, participate and host, even as other tensions have developed between them. Notwithstanding the violent border clashes and technological tensions between Delhi and Beijing last year, Prime Minister Modi attended the SCO leaders Summit and paid respect to the Organization, while his country has taken the lead in establishing a working group looking at digital commerce and start-ups ahead of this year’s twentieth anniversary. China and India may be at knifepoint at the border, but Delhi still sees great value in participating in the SCO.

And this is the ultimate goal of this now two-decade old entity. To create an Organization in China’s image that has captivated the Eurasian heartland with its non-judgmental appeal. The constant meetings, conferences and encounters have developed a web of relationships across the Eurasian heartland that are all fostered around a vision of the world articulated by China. The world may be obsessed with what China is doing in the seas, but it is through the SCO and over land that the longer-term play can be seen. It is here that the real impact and effect of China’s webs of connectivity can be found, and a vision of what China’s new world order might look like.

Raffaello Pantucci is a senior associate fellow at Britain’s Royal United Services Institute and a visiting senior fellow at the S. Rajaratnam School of International Studies in Singapore. His work focuses on terrorism, counter-terrorism and China’s Eurasian relations.

Returning to a topic that has been on the agenda for years, this time for a brand new outlet, the Oxus Society, a wonderful new Central Asia focused organization based in Washington founded by old friend and excellent Central Asianist Edward Lemon. Looking forward to cooperating with them a lot going forwards.

Before posting, time for a quick media catch up. In the wake of the spate of terrorist attacks in Europe spoke to Dutch NRC, Voice of America (which was also translated into Spanish), the Financial Times, and on the other side of the coin spoke to the South China Morning Post about the recent SCO Heads of State Summit, the US de-listing of ETIM, and the impact to China of the US withdrawal from Afghanistan.

China’s Non-Intervention in Afghanistan

As the current stage of conflict in Afghanistan works its way towards a conclusion, China needs to decide its role in the country’s future. Within Afghanistan there is growing frustration about China’s hedging, while across the neighborhood there is a growing sense of concern about China’s more aggressive posture. This will likely have a knock-on effect within Afghanistan and ultimately create blockages to stability within the country. This is a loss for everyone. 

Kabul is losing out on support from its biggest and most powerful neighbor, while Beijing is missing an opportunity to showcase its potentially positive influence to the world with a country desperately in need of it. 

Beijing has for the most part been a quiet actor in Afghanistan. It has played a role in most aspects of the country’s development in the past decades – from helping host negotiations, offering economic investment (including what on paper is the country’s biggest ever single investment in Mes Aynak), aid, military capacity building in the form of light weapons, base construction and training, and even working with strategic rivals like the United States to achieve stability in the country. In addition, China has engaged with a number of multilateral configurations around Afghanistan, and spoken repeatedly of bringing the country into Xi Jinping’s Belt and Road Initiative (BRI). Kabul and others have welcomed this activity, with the Afghan government ensuring that it does all that it can to keep Beijing happy, eager to get it to follow through on its promises.  

Yet, notwithstanding consistent activity, Beijing has never lived up to its promise. As Afghanistan’s richest and most influential neighbor, there was an underlying expectation that China would be able to play a more significant role in the country. But this has never quite materialized as was hoped. Instead, China has studiously hedged, continuing to offer the potential for engagement but never quite following through.

In economic terms, Chinese companies’ investments into the country are the biggest that Afghanistan has ever seen. The much discussed Mes Aynak copper mine was awarded to a Chinese consortium of MCC and Jiangxi Copper in 2007 with an initial price tag of $3 billion attached to it, while CNPC won a tender to develop oil fields in Amu Darya in 2011 with the promise of $400 million in investment. The companies drove the investments, but were strongly supported by Beijing as they were seen in part to reflect a sense of China doing its bit for Afghanistan. At the time, voices in the U.S. expressed anger that China was once again taking advantage of the mineral opportunities created in the wake of American-led invasions (a similar story played out in Iraq with CNPC winning oil tenders in that country), but this was balanced by a sense in Washington that it was not a bad thing for China to step into a more stabilizing role in a country from which the U.S. wanted an exit strategy.

The projects, however, have made little further forward progress. Repeated issues have been thrown up around Mes Aynak, including security concerns, an archaeological dig atop the site, problems with locals complaining about land compensation, access to appropriate chemicals, and a persistent effort by the company to redefine the terms of the project that they had initially signed up to. In March 2016,  the lead Chinese state owned enterprise working on the project, MCC, announced the decision to reallocate funds that had been raised to support the project elsewhere in the company.

In the north of Afghanistan, a similar story has played out. In 2011, Chinese energy giant CNPC signed a contract in conjunction with the Watan Group, a local Afghan firm, to exploit an oil field in Amu Darya in the north of the country. The project was one that was spotted by the company’s engineers in Turkmenistan working on the same oil field on that side of the border. Yet, since the agreement, the project has also been beset with problems. Disputes between the Watan Group and CNPC, between both companies and the Afghan government, and most dramatically between the company’s engineers and local potentates who reportedly deployed armed men to threaten the engineers when they had not received what they felt was their adequate compensation. Additionally, there has been little evidence of progress in the construction of a refinery which was initially discussed when the company won the concession. The entire project has also now reportedly been put into deeper suspension as the Afghan government has sought to strip the Chinese firm of its contract and run the project itself. 

Beyond this, China has talked repeatedly about including Afghanistan into the Belt and Road Initiative, though this has also failed to move forwards. There has been discussion of linking Afghanistan to the China-Pakistan Economic Corridor (CPEC), though this seems to have met with resistance in Islamabad. A fiber optic cable link has been mooted from China to Afghanistan through the Wakhan Corridor. A survey was launched in 2018 by the Afghan government, but the project appears to be slow in moving forwards. The project is part of a broader World Bank regional CASA digital initiative, reducing Beijing’s commitment to the project. Reflecting the low connectivity, according to a 2019 UNCTED report, China was the only border country with which Afghanistan did not have a terrestrial fibre optic cable link.

None of this ultimately reflects the real opportunity that China could offer Afghanistan. Look at neighboring Pakistan, Central Asia or Iran where Chinese firms are active across the economy and the government regularly touts massive deals. Not all come through, but enough that the economic geography of all of Afghanistan’s neighbors is increasingly turning towards Beijing. 

In political and military terms – China has played a role in negotiations, but never chosen to step into a forward role to force parties to the table. Discussion of China acting as a ‘security guarantor’ to any agreement has not generated concrete outcomes, and most Chinese security activity in Afghanistan has been focused on securing the small part of the country that touches China. Beijing has strong links to Islamabad, the Taliban and the Afghan government – yet, has not ultimately done much with these connections to generate actual outcomes in Afghanistan. 

Instead, all evidence points to China strengthening and sealing off its direct and near borders with Afghanistan. It has provided military support to strengthen Tajik border posts and built its own base for its own forces there, equipment to Pakistani forces in Gilgit-Baltistan, and even reportedly helped develop a mountain base for Afghan forces in Badakhshan. The establishment of the Quadrilateral Cooperation and Coordination Mechanism (QCCM) which brings together the chiefs of military staff of Afghanistan, Pakistan, Tajikistan and China to focus on their shared border area, is the institutionalization of this approach. 

The net result is that the actor with the widest range of potential positive links in the country, a relatively neutral history, and the greatest potential economic opportunity has not come forward to help Afghanistan in the way that it could. Rather, Beijing has sat back and watched. The narrative from many prominent Chinese experts remains one of Afghanistan being a” graveyard of empires.” 

Yet now the conflict appears to be winding towards some sort of conclusion, the time would be ripe for China to finally step forwards and take a stronger and more positive role in the country. At a moment when Chinese international diplomacy is under assault, a good news story in Afghanistan might help with Beijing’s global image. 

Unfortunately, it is unlikely that this will happen. While Beijing may simply be waiting out the result of the current negotiations, and hope that the subsequent likely coalition government may provide an effective partner to work with, the most likely outcome from the current negotiations will be messy and inconclusive. Violent actors are not going to go away, nor is a single faction going to be able to take control. NATO will continue its gradual withdrawal, while regional powers will focus on their individual border regions and interests. A vacuum will be left with various factions in Kabul struggling over their stakes. 

The result is a loss for all concerned, with Afghanistan losing the most. And in a worst case scenario, the country could become a further location for conflict between China and its many adversaries in a new proxy war.

Raffaello Pantucci is a senior associate fellow at Britain’s Royal United Services Institute and a visiting senior fellow at the S. Rajaratnam School of International Studies in Singapore. His work focuses on terrorism, counter-terrorism and China’s Eurasian relations.