Posts Tagged ‘China’

And more catch-up posting, this a short piece ahead of British Prime Minister Theresa May’s visit to China for my institutional home RUSI.

Theresa May in China: The Essence of a Working Relationship

ximay

Raffaello Pantucci
Commentary30 January 2018
ChinaUK

Prime Minister Theresa May undertakes her long-awaited visit to Beijing tomorrow. It gives London an opportunity to define and shape its relationship with China, and move it beyond behind-the-scenes sniping and grandiose public rhetoric.

 

Prime Minister Theresa May travels to Beijing tomorrow hoping to shore up trade deals post-Brexit with the world’s second-largest economy amid reports of tensions surrounding the UK’s willingness to formally sign up to China’s flagship Belt and Road initiative (BRI).

Despite May’s reluctance to sign up to the BRI, the UK is already deeply intertwined with the multibillion dollar project.

The UK was the first G7 power to join the Chinese-instigated Asian Infrastructure and Investment Bank (AIIB), a platform aimed to support China’s outward infrastructure push; a report from 2015 by the China-Britain Business Council and Tsinghua University showed how UK companies were already doing projects worth around $27bn with Chinese firms in BRI locations. In addition, any British company worth its mettle with deep interests in China has had an established BRI strategy for some time.

And, as Chancellor of the Exchequer Philip Hammond stated at last year’s Belt and Road summit in Beijing, ‘As China drives forward the Belt and Road initiative from the East we in Britain are a natural partner in the West’.

In sum, the UK is already playing a role in the initiative, although questions persist about how the UK can connect with President Xi Jinping’s globe-spanning vision. There are four elements that should guide Britain in this debate.

First, build on existing connections. There is often a public misconception that the BRI is a large aid project. Indeed, the initiative amounts to a vision for improving connectivity across the Eurasian landmass, through underdeveloped countries that need infrastructure development, but it does this using Chinese funds and enterprises. Often projects are financed using linked loans provided to countries with stipulations of using Chinese contractors.

The entry point into this business chain for non-Chinese companies has, therefore to be an existing link with a Chinese firm or bank, rather than necessarily waiting for contracts to be pushed out into the open market.

Foreign companies that can develop such arrangements are  likely to be those already connected to Chinese firms or Banks and have a longstanding presence in Beijing, a deep history in the target market or those with specific technical know-how that is required in delivery of the ultimate project which the Chinese firm is lacking.

Second, British corporate actors should focus on foreign markets where the UK has an edge. Chinese banks and enterprises will often not have the necessary history or expertise in a target market and this provides an opportunity for British corporations or policymakers.

Certain niche opportunities include, for example, Pakistan, where the legal system is largely modelled on Britain, Kazakhstan whose major firms are listed on UK stock exchanges and, until recently, the UK was Kenya’s largest source of foreign direct investment (FDI). All three of these countries are identified as key BRI states, and all are where the UK has deep experience which can be leveraged, together with Chinese companies penetrating that market.

Third, British planners and commercial actors must remember that Chinese infrastructure investment in many countries will potentially create opportunities for a next wave of investments. The BRI is about building trade and economics corridors, often starting with much-needed infrastructure.

However, for this to provide benefits to locals, and generate a sustainable future, it will need to be developed into a broader economy. Something that will require many ancillary projects and construction.

Targeting this next wave of projects which build on the initial Chinese-dominated infrastructure wave is going to be key in ensuring the long-term viability of the BRI.

Government departments, such as the Department for International Development and the Department for International Trade, should, therefore, concentrate on this potential next wave, seeking both the trade opportunities, but also separately ensuring that poverty alleviation, environmental and sustainable development goals are advanced in relevant locations. In other words, BRI should be piggybacked by outside powers like the UK.

Beyond the BRI, the UK must establish a more coherent and considered security relationship with China. This includes considering the many key UK security relationships that may clash with Beijing’s view of the world. However, it needs to recognise that, as one of the world’s major economies, China will have an international security footprint.

Engaging with this footprint, cooperating where useful (in counterterrorism, in countries where we have shared interests such as Afghanistan, in military operations other than conflict like rescuing nationals or alleviating humanitarian disasters), while not shying away from criticising when relevant remain key ingredients.

Drawing ‘red lines’ while continuing to engage remains the only practical way to manage such an emergent security power. The reality is that a global interconnected world is one that currently favours China and one that Beijing wants to maintain.

Finally, the UK needs to focus on continuing to push China to open its markets further. Among European economies, the UK is one of the most open and attractive to Chinese investors.

According to cumulative figures published by the Rhodium Group, the UK attracted some €23.6 billion in Chinese FDI between 2000–2016. Next closest was Germany at €18.8 billion.

Consequently, it is only proper that Britain should expect some reciprocation and should be willing to draw lines around investments that are made into the UK.

And this reciprocation has to be founded on improving the rule of law and accountability in China. And when this is not met, then clear lines need to be drawn in return about the degree to which China is allowed to invest in the UK.

It is also equally important for the UK to remember that Asia’s rise is not just a Chinese story. Beijing is the most prominent of several ascending Asian powers, and the UK needs to enhance its diplomatic and security engagement across the region.

This is something that the UK needs to do while at the same time continuing to enhance its engagement with Europe. As a power making an active choice to withdraw from one of the world’s most powerful economic and political blocs, the UK needs to engage in deft diplomacy around the world and demonstrate its continuing relevance as a major player on the world stage.

Prime Minister Theresa May meets Chinese President Xi Jinping at the State Guesthouse, on the second day of the 2016 G20 Summit in Hangzhou, China. Courtesy of PA Images

The views expressed in this Commentary are the author’s, and do not necessarily reflect those of RUSI or any other institution

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Been a bit quiet of late, am focused on some larger writing projects which should be coming out over the next few months. We did, however, finally launch the Whitehall Paper authored with my colleague Sarah Lain which came out last year at an event at RUSI in London with Mark Field, MP, Minister for Asia at the Foreign and Commonwealth Office and James Kynge of the Financial Times. Given it is behind a paywall, I cannot just post the paper here, but it can be found online and if you get in touch with me, I can see what I can do to help. Many thanks to the MacArthur Foundation for their generous support of this work, and as ever, to find more work on this topic, check out China in Central Asia.

Separately, spoke to Eurasianet about China’s rail activity in Central Asia, WikiTribune about ISIS, the Times quoted my book in an article about Hafiz Saeed, and the Financial Times about the Belt and Road.

China’s Eurasian Pivot: The Silk Road Economic Belt

WHP_Chinas Eurasian Pivot
Raffaello Pantucci and Sarah Lain
Whitehall Papers31 May 2017
ChinaNew Silk RoadInternational Security StudiesPacific
The modern Silk Road is a key component of China’s political and economic strategy in Eurasia.

China’s growing influence across its western and southern borders is one of the great geopolitical trends of the past decade. With the development of its western domestic regions, Beijing has been drawn into building trade and economic corridors in nearby Central and South Asian countries. Yet these states are home to security risks which China is only now beginning to address.

China’s Eurasian Pivot analyses the country’s growing regional footprint from an economic, security and political perspective. It offers a comprehensive overview of China’s relations with Central and South Asia, showing that the policies now shaped by the concept of the Belt and Road Initiative are ones that China has been implementing in the region for some time.

The paper concludes that China is still developing its approach to the region, which is increasingly being driven by events and external relations. Beijing has stressed that its policies must be successful – both within the region itself and in terms of the impact back home. This highlights the degree to which Beijing feels that it must not fail, and why its approach to the region will continue to be a driving national priority for the next few decades.

Non-RUSI Members and Members with Standard Access

Read the Introduction for free

Buy the book through Taylor and Francis

A further piece for the South China Morning Post about what more China could do in Afghanistan. More on this topic over the year as well I think.

Beijing needs to move beyond rhetoric and take more concrete action to help and guide the violence-torn nation on its northern borders, writes Raffaello Pantucci

PUBLISHED : Tuesday, 02 January, 2018, 3:03pm
UPDATED : Tuesday, 02 January, 2018, 8:48pm

Catching up again on posting with an old piece for the South China Morning Post, trying to address some of the rather vacuous commentary that exists around the Belt and Road Initiative. Don’t totally agree with the choice of title, but that was of course an editorial choice. Of course more on this to come, and please check out my other site China in Central Asia for my history of work on this. A few bigger projects coming on this topic next year.

Also to catch up on some commentary, spoke to the Independent about UK’s historical offender management programme, to the Washington Post about leadership in terrorist groups, to Vox about vehicle terrorist attacks, to AFP about jihadi returnees from Syria, to the Daily Mail about equipment being used to monitor potential returnees, to Newsweek for a historical piece about the Paris attacks, to the National about terrorism trends, to Talk Radio about the Las Vegas shooting, to the Independent about the same incident, to the Washington Post after the recent New York attack, to the Wall Street Journal about terrorism in Germany, to Sky News about what social media companies are doing to counter terrorism, to the Times after minister Rory Stewart’s comments about jihadis dying in Syria, to the South China Morning Post about China’s activity in Syria and finally, to the Economist for this short video on returning foreign terrorist fighters.

Opinion: China can cope with any bumps along the way on ‘Belt and Road’ 

Beijing has long experience dealing with countries involved in its massive trade initiative and the idea that it’s not prepared for problems is misleading, writes Raffaello Pantucci

PUBLISHED : Saturday, 04 November, 2017, 3:32pm
UPDATED : Saturday, 04 November, 2017, 10:17pm
There is an increasingly tired narrative about how China’s encounters with problems in countries involved in its “Belt and Road Initiative” are evidence of potential bumps along the way.

Implicit within these statements is the idea that the project (as though the belt and road is a single project) is still being developed and conceptualised, and that these problems are something for down the road. The reality is that the initiative is already under way and China is already managing the problems it is encountering.

Announced in 2013, the initiative was Chinese President Xi Jinping’s way of stamping his name on something that was already under way. The story of Chinese investment in Central Asia goes back to the first days of the collapse of the Soviet Union. As the Chinese economy grew, it slowly spilt over its western borders, following the natural flow of regional trade. As trouble in China’s Xinjiang got out of hand, an approach of using heavy economic investment to improve the region only accelerated this flow. This became the root of the Silk Road Economic Belt.

Down in southern China, the 1999 Kunming Initiative aimed to foster greater connectivity for Yunnan province, all under the auspices of former president Jiang Zemin’s Great Western Development Strategy. This became the root of the Bangladesh-China-India-Myanmar Economic Corridor.

In Pakistan, as far back as 2002, former premier Zhu Rongji visited Pakistan to inaugurate work at the port in Gwadar.

Meanwhile ex-president Hu Jintao announced a surge in trade and investment with Pakistan in 2006. The bones of the China-Pakistan Economic Corridor had been laid out long before Premier Li Keqiang signed a memorandum of understanding in 2013. And none of this covers the port investments in Sri Lanka and other Southeast Asian ports that have long bothered India.

There is no doubt that the agglomeration of all of these projects under a single umbrella has turbocharged them. While previously projects somewhat sputtered along, the high-level attention that is accorded by becoming belt and road initiatives, plus the investments and companies that follow, have changed their dynamics. But the key point to remember is that something was already under way. This is not, for the most part, completely fresh and brand new investment. It builds on old ideas and in some cases on old contracts.

Consequently, it is incorrect to say that China is completely new to these countries and completely new to problems they may encounter. Kyrgyzstan, for example, has faced a few moments of domestic instability. Back in 2010, rioting in the wake of a contested election and fierce interethnic clashes led to the evacuation of Chinese traders working in border trading posts. The kidnapping and death of two Chinese engineers in the Gomal Zam Dam project in Pakistan in 2004 led to a cessation of work in the country. Suffice to say, the problems that China may encounter through investing in challenging periphery countries are not new.

What has changed, however, is the scope of China’s investments and the numbers of people and assets involved. This does change the dynamic somewhat, leaving China exposed in a way that it has not had to manage thus far.

While previously, having to worry about a few people in faraway lands was largely something that could be left to local actors, increasingly this is not the case. Not only are there far more people and assets to worry about, they are vocal and angry when they get in trouble. Voices get to Beijing and stoke fires of public anger suggesting China is unable to protect its citizens, notwithstanding the massive investments it has made in its security forces.

Additionally, Chinese citizens are increasingly obvious targets. Gone are the days when Chinese were overlooked as poor beggars eking out an existence. In China’s neighbourhood, they are increasingly the big investors (whether this is true or not) and this has consequences for their image overseas.

They are now wealthy and attractive targets, both in terms of their economic value, but also in that they are increasingly the representatives of the big power that is supporting a government that may be unpopular for various reasons. All of this makes them targets for angry locals keen to protest against the state, or criminal and terrorist elements who are looking for opportunities.

There is no doubt that China is going to encounter bumps as it paves, mines and develops the belt and road projects. But these problems are not new, in much the same way as the investments themselves are building on deep conceptual and financial foundations that have come before them. The belt and road is not so much a coming concept as a current reality.

Understanding the specific nature of each branch is going to be the important determinant that people should be focusing on to understand how and whether the belt and road is worth engaging with.

It is also how China is going to comprehend how it is going to mitigate the risks that it is already managing better.

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

Finally catching up on some very old posting. Here is a piece on China for the Telegraph, was intended after the 19th Party Congress. I will catch up on other posting later.

Can China avoid an armed confrontation with the West?

Chinese soliders

China is moving towards shedding Deng Xiaoping’s famous maxim about hiding its strength and biding its time. President Xi Jinping’s bold statements during his 19th Party Congress speech last week spoke of a China rising to fill its role on the global stage.

The difficult question for the West is: how will this newfound confidence be expressed in China’s posture on the world stage? And how the rest of the world will have to interact with it?

China’s rise as a military and security power is not a new story. From a third-rate military force in the 1980s, the People’s Liberation Army has transformed itself.

Xi Jinping’s administration has stepped this up through an intensive process of reform that is giving it doctrines and approaches that are competitive with some of the world’s most effective militaries.

China is also expanding its military footprint. We can see this from the establishment of new forward bases, like in Djibouti on the Horn of Africa, or through port visits, such as the appearance of Chinese submarines in Sri Lanka.

On land, Chinese peacekeepers are being deployed with increasingly dangerous mandates, something reflected in losses on the ground in parts of Africa.

In military sales, China has leapt up the rankings to become the world’s third largest weapons vendor at around $9.1 billion, according to estimates by SIPRI.

But is this surprising? China will soon be one of the world’s largest economies, with investments and interests all around the globe. It makes sense for it to develop a hard power capability to protect its interests and people as they go out under the auspices of Xi Jinping’s keynote “Belt and Road Initiative”, which aims to build a series of land and sea trade routes across Asia.

The dilemma for China is whether this role is one which will complement or compete with the activities of the West – and the United States in particular. The American political scientist Graham Allison believes all rising powers face something called the Thucydides Trap, in which their rapid improvement brings them into inevitable confrontation with an established power which fears replacement.

In reality China’s foreign policy is complex, containing three strands with varying degrees of aggression:

1. China often cooperates with the West

In Afghanistan it has worked closely with the US and Germany on joint training missions, providing training for Afghan security forces, and facilitating negotiations between the Taliban and the Afghan government in Kabul. This clearly matches with western interests.

2. China sometimes passively opposes the West

In Syria the US and most of Europe has taken against the Assad regime, against Isil and alongside the Kurdish forces. By contrast, Beijing has thrown its weight firmly behind Assad, and is supporting the fight against Isil only with the proviso that it is ultimately the regime (supported by Russia and Iran) that will bring stability and security back to the country.

The running theme through all of these situations is that China is protecting its own interests. This is quite natural, but an accidental war would be in nobody’s interest. So far, tensions like these re mostly restricted to border countries where China feels it is not being expansionary but merely protecting its homeland.

A bigger dilemma will present itself when China decides to undertake a more aggressive action in some foreign field where it has no direct border dispute but isprotecting its interests or nationals. In this context, what will be the Western response – to support or condemn?

It is not clear we are anywhere near this situation yet, but clearly Beijing has started down a path of preparing itself for such an eventuality. The question at that stage will be whether the West agrees and supports China’s activity, or whether Beijing is seen as an aggressor that requires confrontation.

There is no clean answer to this question. And nor is it clear whether and when it will be faced. But there is no doubt that China is rising as a global power and has a growing military and security footprint to accompany its mighty economic machine. How the world manages this will be one of the defining questions of the next decades.

Late posting of a new piece for the South China Morning Post, looking at foreign fighters from Syria heading back to China.

China should beware of ‘returning radicals’ whether they come home or not

The goal of the Turkestan Islamic Party is to punish China for what has been happening in Xinjiang, and it will do so wherever it can

PUBLISHED : Sunday, 15 October, 2017, 6:03pm
UPDATED : Sunday, 15 October, 2017, 10:01pm

The threat of returnees from Syria and Iraq is the threat that has not yet barked in the way that was expected.

While thousands of radicalised individuals from around the world streamed to fight in Syria, we have not yet seen the same outflow of individuals off the battlefield with direction to launch attacks back in their home countries. There have been some incidents, but it is still unclear whether this threat will express itself in the same way as the flow the other way.

When it does, however, China is one of the countries that should be particularly concerned by what happens to this flow.

In research undertaken in 2015, prominent terrorism researcher Thomas Hegghammer showed how terrorist plots featuring returnee foreign fighters were among the most lethal. Using a data set focused mostly on foreign fighters from the West, the research highlighted how individuals who had received some form of training or experience on the battlefield, tended to be more able to launch effective terrorist plots back home.

There is a logic to this: those who are experienced on the field are more likely to have training to make bombs or use other weapons (and therefore be more effective), they will be more desensitised to violence and therefore more willing to kill, and they are more likely to have the necessary contacts with terrorist networks and leadership.

But at the same time, being a foreign fighter does not necessarily equate to becoming a terrorist at home. Many foreign fighters are motivated by idealistic goals, seeking the thrill of fighting in foreign fields to protect communities of brother Muslims. Their initial intent is not to launch terrorist attacks at home, and while some (London’s July 2005 bombers are a good example of this) are re-directed on the battlefield by senior figures to launch attacks back home, the overwhelming majority do not have this in the forefront of their minds when they travel in the first place.

This stands in contrast to what we see in those who have gone from China to fight in Syria and Iraq. Watch the videos or statements from the Turkestan Islamic Party (TIP) in Syria and you can see messaging that is quite clearly aimed at persuading people to come and fight in Syria to ultimately prepare to return home to China. Videos show the oppressive situation in Xinjiang and call for people to come to Syria to a better life to prepare to rectify the situation.

Islamic State messaging to Uygurs has been more limited, though we have seen the group issue direct threats to China from its leader Abu Bakr al-Baghdadi, as well as through its Uygur warriors who have published magazines and videos threatening China.

In its first message in Uygur in March this year, IS threatened to “shed blood like rivers” in China and against Chinese interests. While on the one hand this can be dismissed to some degree as fairly standard threatening by these groups against anyone that they see lined up against them, when looking to China in particular the threat takes a different dimension.

TIP’s goal (and Islamic State’s in some ways) is to forge an army that will be able to return to punish China for what has been happening in Xinjiang. And there is already some evidence that they have tried to do this – the attack last year against the Chinese embassy in Bishkek, capital of Kyrgyzstan, may have been a failure, but it showed a growing ambition by Uygur extremists to target China. And while returning home to China may prove to be too difficult, launching attacks on Chinese interests around the world may prove easier.

This is important for China to note. While in many other countries, the radical impulse that motivates people to go and become foreign fighters may have in part been addressed by the experience in Syria and Iraq, for those who have come from China, it appears as though the experience was merely preparation for what is to come later. And while this is not to reduce the potential threat that foreign fighters pose around the world, the overarching dynamic of the community is likely to be different for those coming from China versus other places.

For most Uygur fighters, they are going away to train and prepare to ultimately return and punish China for years of perceived oppression. Given the numbers and training they will have received, this is something which is going to trouble Chinese security officials for some time to come.

On the one hand, there is a clear need to find a way to address the causes of grievance that can be found in Xinjiang. The current hard line approach needs some moderating to try to assuage people’s concerns rather than exacerbate anger. But at the same time, Beijing needs to think about the growing impact of this group of radicalised and battle-hardened individuals around the world.

As China has increasingly gone out into the world, its human footprint has increased, producing numerous potential targets. If its warriors off the battlefield in Syria and Iraq are unable to return home, they are likely to find ways of striking China elsewhere.

This is likely to produce a network and threat that China will be addressing for years to come. Beijing needs to both solve its problems at home, as well as find a way of protecting itself abroad.

Catching up posting as ever, this another piece for South China Morning Post looking at China’s problems along the Belt and Road with reference to current tensions with India potentially being an indicator of what could happen more substantially.

China must get along with regional powers to make its New Silk Road plan work

Raffaello Pantucci writes that Beijing is seeking to increase its presence in regions where it is going to need more friends than enemies, including India

Geopolitics matters. As we move deeper into a multipolar world, the importance of grand strategy will only grow. Relations between states at a strategic, economic and even emotional level will all intertwine to create a complicated web that will require sophisticated diplomacy to navigate. For China this is a particularly important lesson to learn, given its keynote “Belt and Road Initiative” that requires an acquiescent and peaceful world to deliver on its promise of building a web of trade and economic corridors emanating from China and tying the Middle Kingdom to the world. China’s current stand-off with India highlights exactly how geopolitics can disrupt Xi Jinping’s foreign policy legacy initiative.

The details of the specific transgression within this context are not entirely important. China is asserting itself in its border regions and changing facts on the ground to solidify claims. Indian push-back is based on strategic relations with Bhutan that go back a long way and a concern about how this changes Indian capabilities on the ground.

It comes at a time when relations between China and India are particularly low, with suspicion on both sides. Most analysts do not seem to think we are going to end up with conflict, but it is not clear at the moment what the off-ramp looks like. But whatever this exit looks like, we are undoubtedly going to see China finding it tougher to advance its Belt and Road Initiative through India’s perceived or real spheres of influence in South Asia.

This is something which is already visible in the broader tensions between China and India over Pakistan. China has focused on the country as a major ally that it is supporting to develop its domestic economy and improve its strategic capacity for a variety of reasons. Yet this approach directly undermines Pakistan’s perennial adversary India’s current approach of isolating Islamabad on the international stage as punishment for cross-border terrorism.

Further, the CPEC route’s cutting through disputed territories in Kashmir provides a further spur to Indian concerns. At a more tactical level, China’s refusal to allow Jaish-e-Mohammed leader Masood Azhar to be included on the list of proscribed terrorists, and its blockage of Indian entry into the Nuclear Suppliers Group, all point to a relationship with which Beijing is clearly playing an aggressive hand. India has also shown itself to be a hardball player in this regard, making public shows of proximity to the Dalai Lama, a source of major concern to China.

Of course, such a posture is either capital’s prerogative. Past relations between China and India have been fraught. The two countries have fought wars against each other. Yet at the same time, the overall tenor between the two is often in a different direction: both are proud members of the BRICS grouping (arguably the two leaders of it), and both have embraced the Asian Infrastructure Investment Bank. India is keen to gain a slice of the outbound Chinese investment, while China is keen to access India’s markets. Both see the opportunities and recognise that as Asian giants they have an upward trajectory over the next few decades. Together they will undoubtedly be stronger than alone.

But this positive message is thoroughly buried under the negative news around the border spat in Bhutan. Rather than being able to build a productive relationship, the two countries now find themselves at loggerheads. This is a problem for both, but has an important lesson within it for China as it seeks to advance its Belt and Road Initiative globally.

To be able to credibly realise the Belt and Road Initiative, China is going to need to have positive relations with partners on the ground, in particular major regional powers. With plans to build infrastructure, expand investments and grow physical footprints on the ground, Beijing is seeking to substantially increase its presence in regions where it is going to need more friends than enemies. When looking across South Asia, this means having a productive relationship with India. Without this, Delhi will find ways of complicating China’s approach or, more bluntly, obstructing it. Given the importance of some of the South Asian routes to the development of some of China’s poorest regions, it is important for Beijing to make sure that these corridors related to the Belt and Road plan live up to their promise.

And this lesson is one that will be relevant outside a South Asian context. For Beijing to be able to deliver on the promise of the Belt and Road Initiative, it is going to need to watch the geopolitics. Similar problems may eventually materialise with Russia, or on the seas as Beijing seeks to turn the 21st Century Maritime Silk Road into a reality.

Without friends along these routes, China is going to find it very difficult to make these visions work no matter how much money they try to throw at the problem. With nationals, companies and interests broadening and deepening, China needs an acquiescent environment and countries that are eager to work with it. Geopolitics is a chess game of many different levels, and as power becomes more diffuse on our planet, Beijing is going to have to learn how to play these games if it wants to deliver on the promise of its grand visions.

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

This article appeared in the South China Morning Post print edition as: It’ll be tough going without friends on the New Silk Road