Posts Tagged ‘China’

Up next another China piece, this time for the South China Morning Post looking at the Belt and Road in the wake of Xi Jinping’s visit to Myanmar.

Is China getting real with its grandiose visions for the belt and road?

  • Beijing is toning down its rhetoric for the grand plan and rethinking its massive international infrastructure programme, Raffaello Pantucci writes
  • Signs of a more modest approach from Xi Jinping’s trip to Myanmar when there was little official mention of an economic corridor involving the two countries
Topic |   Belt and Road Initiative

Absent from almost all of the official coverage around Chinese President Xi Jinping’s recent visit to Myanmar was any mention of the Bangladesh-China-India-Myanmar Economic Corridor (BCIM-EC).

A belt and road route before the Belt and Road Initiative existed, the corridor was a concept first mooted in the late 1990s but has largely gone nowhere. The bigger question this poses is whether this is a harbinger of China shedding its grander overambitious belt and road visions over the next decade for a more focused and logical set of bilateral engagements.

Certainly there has been a toning down of rhetoric around the belt and road, an infrastructure vision to link economies into a China-centred trading network. While it remains a hot topic in Beijing and a sure-fire way for leaders of other countries to be seen to be aligning themselves with China, its scattered record of success has meant there has been rethinking about how this grand concept will continue to fit into Beijing’s foreign policy repertoire. It continues to be a convenient tag for Chinese diplomats to use given its broad and positive conceptual basis but, it is not clear that China wants to continue to talk in the expansive corridor terms that it used to.

The result has been that while the initiative continues to feature in the public discourse, there has been a refocusing of attention around it. Rather than talk in terms that are almost impossible to deliver to or fail to deliver with the rapidity that might be hoped, the focus of the next stage of the narrative around belt and road will be to focus on the bilateral. Rather than China painting itself as the global regional connector, Beijing will scale back its ambition to focus on delivering direct connectivity to China in the first instance, with everything else coming in the future.

The logic of this from Beijing’s perspective makes sense: why go to the expense and effort of pushing your resources in directions whose direct benefit to China is limited or on a very long time horizon? Better instead to focus on things that are tangible and immediate and provide China with clear connectivity that it can show results at home for.

It will also help address some of the belt and road pushback that Beijing has faced globally, where the initiative is referred to as “debt trap” diplomacy, and an attempt by China to reshape global economic geography around its interests while creating a list of client states.

Not only has the volume of recipient countries complaining been growing, but foreign companies are calling out the win-win rhetoric as they grow frustrated at their inability to benefit from this push of external Chinese capital. Most recently, the European Union Chamber of Commerce in China published a report in which its members complained about a lack of transparency in belt and road projects and irritation that the benefits they had seen from the initiative were “quite insignificant”.

On a visit to Pakistan last year, I met a wave of Pakistani businessmen frustrated at their inability to tap the China-Pakistan Economic Corridor money they heard reported flooding into their country. Beijing is not unaware of these concerns. The Belt and Road Summit in Beijing last year was largely a story of China trying to address global concerns around the initiative, focusing on making it more inclusive, ensuring more local benefit and making a greater effort on environmental concerns.

From this perspective, the dropping of BCIM-EC from Xi’s visit to Myanmar might be a first sign of how Beijing wants to drive the initiative forward. The BCIM-EC was always an awkward corridor to fit into the belt and road given Indian hesitation around it more generally. We saw little public reference to it during the meeting between Xi and Indian Prime Minister Narendra Modi last year, and then again during Xi’s visit to Myanmar.

Instead, we see China focusing on the bilateral, delivering what has already been discussed, and avoiding too much grandiloquence which will ultimately be hard to live up to. Beijing’s track record in Myanmar is a patchy one, and recent reporting has shown how China’s efforts to support peace processes in the country have also failed to deliver.

Ultimately, Beijing will be an important partner for Myanmar. Geographic proximity assures this. The questions are how high a bar does China want to set for this relationship and how much does Beijing want to become the responsible stakeholder it was setting itself up to be?

This might be the key lesson to draw from this visit for the broader belt and road. From a half decade of ever growing grandeur, the next half decade of the initiative will be a more realistic tone and narrative focusing on ensuring China gets what it needs from these bilateral relationships rather than the overblown – and expensive – rhetoric that dominated the first half decade.

And in many ways this is a reflection of the reality of the first intended aim of the initiative, which evolved from Xi’s call for a focus on periphery diplomacy, then developed into a call for greater infrastructure and economic connectivity, and then grew into the globe spanning beast that stretched from Asia to Latin America via Africa and Europe and back. In many ways it could be that this is going to be a period of the belt and road returning to its roots. A moving of the goalposts that will allow for a shift in belt and road rhetoric without having to completely walk away from it and the loss of face that would follow.

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

And now my first piece for the new year for the Telegraph offering some thoughts on how the UK needs to develop a strategy towards China now that the Huawei question has been resolved.

The Huawei drama has exposed a depressing reality – Britain has no coherent plan for China

Secretary of State for Defence Ben Wallace (L) and General Sir Nicholas Carter (R) leave Downing Street after attending the National Security Council meeting convened by Boris Johnson

Britain’s way forward has been wrongly framed as a binary choice between China and the US

In recent days, the Huawei debate has obscured a concerning longer-term trend; London’s inability to have a serious discussion about its approach to China.

The story of China’s rise to the first rank of international powers is well-known, but in Britain at least, it has largely been treated as an external event, of little direct consequence to the UK. The result has been an immature discussion that let the conversation about Huawei turn into a proxy for a discussion about China, reducing the debate to a false binary choice between Washington and Beijing. The truth is far more complicated, relating to where the UK sits in the world and how London will navigate the great power games buffeting the planet.

The world has changed in the two decades since the turn of the century. Where once terror threats dominated, the preeminent concern that now faces capitals is great power politics. While the trans-national threats posed by terrorist groups challenged our way of understanding who were our enemies, the challenge of current geopolitics is that it is not as conveniently binary as the Cold War.

China is a particularly complicated case. An authoritarian power whose internal fragilities are almost impossible to calculate (thus making it hard to know how strong or weak it actually is), what is clear is its assertive posture on the world stage.

The UK, like every other power on the planet, needs to have some sort of a relationship with both Beijing and Washington. Quite aside from the globalised economy that binds us all together  (notwithstanding the many difficulties of doing business with China), challenges such as climate change cannot be addressed without some engagement and coordination between everyone. Choosing between China and the US is therefore not a useful frame with which to look at the world.

And while this binary choice makes no sense from London, this reality is even more acute in parts of the world which are more dependent on China. While China’s actual economic influence, power and investment is often exaggerated in the developing world (as compared to European or American economic links), it is far harder for them to stand up to Beijing or Washington. This reality is something that complicates the UK’s engagement in these parts of the world. For example, both India and Pakistan are important powers to the UK. Both have complex relationships with China (as well as of course between each other and the US) which rank very high in their strategic thinking. They see China as both an opportunity and threat. Yet the UK needs to find a way of balancing between them all to advance its own interests.

The goal for the UK must be to focus on understanding where and when it should choose to engage, influence or counter Chinese behaviour. We must push back on aggressive Chinese activity – whether against neighbours or human rights abuses at home – and influence China as it plays an ever greater role in developing global norms. Chinese action on climate change, as well as Beijing’s role in the developing world requires engagement.

Looking at the other side of the coin, the US remains the UK’s preeminent security partner. The Five Eyes intelligence network and intimate security partnership is matched only by the close human, political and economic relationship across the Atlantic. Notwithstanding disagreements, like over Iran policy or the US’s recalcitrance on climate change, the transatlantic alliance is going to persist as London’s main security pillar on the world stage.

But the UK has no desire to follow the US down the path of cleaving the world in two. The idea of severing all links and pushing China into a purely adversarial relationship misses the vast complexity of China’s place in the world and is not to the UK’s advantage.

The truth is that both large powers are behaving in a manner they feel commensurate with their size and power. We now occupy a world which is determined by the realities of hard power rather than ideology. For the UK, navigating this world in a post-Brexit context will be a complicated soup of diplomacy and activism. It will not be an easy path to forge, but London needs to engage with the world as it is, rather than as it would like it to be. It will require a more serious conversation about foreign policy that does not simply boil it down to “yes” or “no” choices.

The Huawei debate has for too long occluded a serious conversation about China’s place in the world and how the UK should respond. This debate needs to take place at a public as well as a political level. Until it does, we will continue to find ourselves buffeted by the winds of geopolitical hard power, rather than steering our way through these choppy waters.

Next up, a report for RUSI with Veerle which captures the findings from a project looking at UK-China cooperation in Afghanistan. A theme that we have been working on for some time, and will likely continue to work on going forwards in one way shape or form. The full paper is available here, and the online intro is posted below.

An Outline for UK–China Cooperation on Afghanistan

Veerle Nouwens and Raffaello Pantucci
Conference Reports, 18 December 2019
China, Afghanistan, International Security Studies, UK

On 29 April 2019, representatives from the UK, the People’s Republic of China, the Islamic Republic of Afghanistan, Pakistan and Uzbekistan held a seminar in Beijing to discuss cooperation on development in Afghanistan. Initially conceived as a trilateral format (between the UK, China and Afghanistan), the addition of participants from Pakistan and Uzbekistan expanded the format to help adequately address some of the regional connectivity questions.

The event was co-hosted by RUSI and the China Institutes of Contemporary International Relations (CICIR) and was attended by representatives from the UK embassies in Kabul and Beijing, representatives of the governments of China, Afghanistan, Pakistan and Uzbekistan, as well as representatives from the Asian Development Bank (ADB) and the Aga Khan Foundation. The seminar focused on five key questions:

• How can the UK and China best prioritise areas of cooperation in Afghanistan?
• What are Afghanistan’s rail infrastructure needs?
• What is the connectivity landscape between Central and South Asia, and what role might Afghanistan play as a bridge between the two regions?
• How can Afghanistan engage with the China-Pakistan Economic Corridor (CPEC)?
• How can the UK and China cooperate in the space of humanitarian aid in Afghanistan or other third countries?

BANNER IMAGE: Courtesy of Asian Development Bank/Wikimedia Commons

More delayed catch up posting, this time a short piece for an excellent website called East Asia Forum, which is a platform for a very interesting discussion about Asian affairs drawing on a wide variety of authors and topics. Some very interesting stuff covered, well worth checking. Mine draws on a well-worn topic for me which is only going to build up further as time goes on.

China’s complicated relationship with Central Asia

2019-09-04T093820Z_1563111202_RC11D584FDF0_RTRMADP_3_KAZAKHSTAN-CHINA-PROTESTS-400x262

Author: Raffaello Pantucci, RUSI

The closure of a mine in Kyrgyzstan, protests on the streets in Kazakhstan. The grand guignol of menacing Chinese investment into Central Asia appears to be rearing its head in public discourse. Both fearful and grateful, the region is a paradox for China at the beginning of its Belt and Road. Hardly a week goes by without a senior Chinese visitor appearing somewhere in Central Asia, revealing a long-term influence game that Beijing is winning.

But the situation in Central Asia goes beyond foreign investment. People want to connect with China. In Ashgabat, queues of eager young Turkmen wait outside the Chinese Embassy seeking visas. For the young in Dushanbe, learning Mandarin is in vogue. In Uzbekistan, Chinese investment is the talk of the town, as the city celebrates the Chinese autumn festival and the China Expo showcases Uzbekistan as key to China’s Central Asia vision. And while Kazakhstan and Kyrgyzstan may have protests, Kazakh leader Kassym-Jomart Tokayev has just visited Beijing talking of strategic partnerships and Kyrgyzstan awarded Chinese President Xi Jinping their highest national award when he visited earlier in the year.

We have seen anti-Chinese protests in Kazakhstan and Kyrgyzstan before. Back in 2009 and 2016 there were large-scale protests focused on reports that the government was going to allow China to rent land for agricultural purposes. In 2011, fighting broke out between oil workers and the Kazakh state in Zhanaozen leading to a number of deaths — Chinese company CITIC was among the investors and received some blame for the bad pay which appeared to underpin the protests. Smaller scale brawls between Kazakh and Chinese workers are frequent. As seen currently in Kazakhstan, protests are usually linked to bad working conditions, clashes between workers or environmental damage. There is also usually a strong undertone of local politics.

Central Asians have watched as Chinese money, workers and influence have shaped the regional economic geography with the open support of local authorities. This is a lever that political opponents can sometimes use. Building on an elemental sort of racism towards Han Chinese that can often be found in the region, the protests can actually often be complaints aimed at local authorities. People are often protesting against their own government, with China becoming a target by proxy. This confluence was most clearly on display recently in Kazakhstan where protestors’ public anger was targeted at the Chinese, but the protests were clearly instigated by governmental political opponents.

In Kyrgyzstan, paranoia towards foreign mining investors has repeatedly led to locals scaring away foreign investment. The massive Kumtor mine in Kyrgyzstan has faced environmental issues and other problems for its Canadian owner. Chinese projects are smaller, but beset with similar problems. Stories of pollution, bad pay and local corruption blend with a general fear of Chinese investment which is sometimes stirred up by local potentates seeking to extract more money or score points against political rivals.

And there have been some dramatic failures by Chinese firms in the region. In January 2018, Bishkek lost powerfrom its main power station after refurbishment by Chinese firm TBEA failed at exactly the wrong moment. There are questions surrounding corrupt and pollutive practices of Chinese companies working in the region. Chinese firms tend to lower their standards in the region, ignoring requirements they usually adhere to back home.

What is less visible are the expressions of sympathy and concern about the plight of Uighurs in Xinjiang. US State Secretary Pompeo may have heard polite noises during his comments to Central Asian foreign ministers in New York but there is little public sympathy for their plight. Concerns tend to focus on co-ethnics and family members caught up in China’s camps system and fears that their governments might seek to purchase similar technology to use against them. When people do express fear about how events in Xinjiang might impact them, it is at a very personal level focussed on their own personal safety, rather than the broader cause of abuse of Muslims in China.

But very little of this matters to Beijing. Central Asian leaders remain eager for Chinese investment. The once closed Uzbekistan is the most obvious example of this, where the surge of Chinese investment is openly welcomed. Beijing is increasingly holding large portions of debt and becoming the main trading partner across the region.

China, in the meantime, is increasingly focusing on its security equities in Central Asia. Stories of Chinese private security emerging in the region sit alongside more overt displays of strength through the building of bases, the conduct of joint training exercises and the provision of equipment for Tajik forces along the Chinese border with Afghanistan. Already this year, there have been reports of joint training exercises with Tajik, Kyrgyz and Uzbekforces.

It would also be unfair to not point out the positive side of China’s presence in the region. In Badakhshan, Tajikistan locals may have conspiracy theories about China’s long-term intentions in the back of their minds, but they will admit that the Chinese-built roads have changed their communities for the better. Chinese companies and projects are often seen as more credible than locals — who often show up, make a lot of noise and fail to deliver. And while Confucius Institutes are regularly talked about in the public debate as centres focussed on brainwashing the young to be Xi acolytes, visit them on the ground and they are full of eager young Central Asians chasing the opportunities that China offers.

The story of China in Central Asia is a complicated and nuanced one of an emergent region which is being swallowed up by a neighbour who cares little about it, focussed instead on its geopolitical clash with Washington. Locals at an individual level do not care about these broader issues and are instead trying to navigate their way to prosperity among the economic boom they see in China. As the world watches the US–China confrontation play out on the international stage, few are paying attention to the heart of Eurasia where a sea change is happening. China’s natural borders mean it will always have a strategic interest in Central Asia, but helping the region develop other options should be the focus of western policymakers.

Raffaello Pantucci is Director of International Security Studies at the Royal United Services Institute for Defence and Security Studies (RUSI), London.

For much the same reasons as last time, been a bit delinquent in posting. Going to try to catch up a bit now, starting with a piece for my host institution RUSI looking at the China-Russia relationship. There is a possibility that some may see a whiff of contradiction in here, given the volume of writing I have done about how the China-Russia relationship is changing, but at the same time the point here is to say that it increasingly feels like in some places we are letting this get a bit too far. All of which reflects a weakened understanding of the topic. More on this as you can imagine to come, and as ever, comments, corrections and contradictions welcome.

The Over-Hyphenation of ‘China-Russia’

Raffaello Pantucci
Commentary, 3 October 2019
China, International Security Studies, Russia, Global Security Issues, Land Forces, Military Personnel, Technology

russia_china_1.jpg

A growing Western habit of linking China and Russia as joint adversaries in various contexts is missing the actual strengths of the relationship, and their varied interests in third locations.

Geopolitics have returned with a vengeance. Public discourse is increasingly conducted in adversarial terms, with ‘our side’ versus ‘their side’ dominating the strategic narrative. And while the ‘enemy of the day’ from a UK perspective is Iran, there is a growing discussion about China and Russia as though they are one and the same, a new ‘axis of evil’ working to stymie ‘our’ ability to operate in the world.

Reading between the lines of the narratives of most international confrontations, ‘they’ – for the most part the Russians and Chinese – inevitably appear to be supporting almost all of those who the UK (or ‘West’ more broadly) is against in the world: blocking votes at the UN; working together on military exercises; building up bases in the Arctic; and supporting Venezuela, Iran or the Syrian regime. This new entente appears to be behind many adversaries.

Yet there is a real danger of creating a Frankenstein’s monster in this interpretation of the Sino–Russian vector. There is no denying that the two have moved closer together in recent years – just watch the optics from Chinese Premier Li Keqiang’s visit to Moscow where he was feted as a great potential saviour of the Russian economy, or the latest security exercises involving Russian and Chinese forces, Tsentr 2019 – but the truth is that there are tensions between the two countries bubbling below the surface.

Start with Central Asia where there is a perennial tussle between the two over who is the dominant force. Russia has watched as China has become a major holder of regional debt, as its companies have moved in en masse to dominate local economies, and it is increasingly clear how China is moving into Russia’s traditional role of security provision. Chinese border guards are showing up along Tajikistan’s border with Afghanistan, doing training exercises and furnishing equipment. Security ministries across the region have growing numbers of officials who speak Mandarin or have experience in China. Russia’s power no longer looks as strong as it once was. It takes little effort to find voices in Moscow who worry about this erosion of Russia’s sphere of influence.

Or look at the growing Chinese technological penetration into Russia. Like much of the world, Russia is in the midst of a debate to determine who is going to build its 5G networks. But unlike the US, the UK or the rest of Europe, there is little evidence that Russians are going to resist China’s entry into this sector. Moscow’s spooks may worry about what this means for their dependencies on China but, as they will candidly say, what alternatives do they have? They point to who is sanctioning them at the moment. China may be scary, but the West is actually punishing Russia.

And, to look at a loftier normative level: China is fundamentally a status quo power, while Russia is the ultimate disruptor. Beijing quite liked the world structure as it was before US President Donald Trump took his sledgehammer to everything; the old world order fostered China’s stratospheric economic growth. It was a good path to which Beijing would like to return. By contrast, Russia has made itself increasingly relevant around the world through disruption, by creating chaos or by helping spur it along, as a prelude to Moscow inserting itself as an important player to help bring resolution.

These are fundamentally contradictory positions: Beijing likes the status quo, while Moscow derives relevance in chaos. And there are moments where these two perspectives have clashed. Beijing disapproved of Moscow’s redrawing of Ukraine’s borders (and Georgia’s beforehand). China has its own provinces with ethnic minorities seeking independence and recognition. It certainly does not like the precedents that Moscow set in recognising the South Ossetians and Abkhazians in Georgia or the breakaway parts of Ukraine. What if people were to start doing this to Tibet or Xinjiang?

Yet notwithstanding these tensions, the West is increasingly looking for a China–Russia axis around the world. The US has articulated this axis most clearly in the Pentagon’s National Defence Strategy, and similar concerns are echoed in Brussels and London. More glib commentary tries to separate them out – Russia is described as being a storm, while China is climate change. The argument here is that both are problematic, only that the former is an irritant, while the other is seismic. Yet increasingly such perspectives consider the two countries as parts of a linked problem.

Russia and China are not blind to this narrative and the broader global confrontations. For them it can be useful to show a strong alliance in the face of the growing Western bloc. At most major international conferences, senior figures stand up and champion their close relationship. They are undertaking ever more ambitious and important military exercises together. Beijing’s strategic bombers have participated in Russia alongside 1,600 troops as part of the massive Tsentr 2019 military exercise, the third or fourth such drill this year they have done together. They are talking about an ‘Ice Silk Road’ over the Arctic and have obviously developed a modus vivendi of sorts over what is going on in Central Asia. Li Keqiang’s latest visit has highlighted more investments into Russia (and Russian sales to China), at a time when Beijing’s economy continues to suffer under US trade tariff impositions.

Beijing and Moscow also share a worry about the ongoing pattern of popular uprising endangering regimes around the world. For Beijing this is most visible in Hong Kong, while Moscow has watched protestors rumbling on its streets for some time. For both of them, the fear is that this is part of the bigger wave of ‘colour revolutions’ that swept through Georgia, Ukraine and Kyrgyzstan in the 2000s, and more recently through the Middle East in the Arab uprising. Seeing these as Western-orchestrated plots to bring down governments the West found inconvenient, Moscow and Beijing worry that they might be next on the list.

There is no doubt that China and Russia increasingly see their futures as linked and are binding themselves closer together. But the West’s current habit of only seeing them this way is exacerbating this tendency and creating a unified adversary.

Adopting such an approach also means the UK is blind to the potential opportunities that exist on the ground in some contested areas of the world. Simply seeing a China–Russia axis means that observers miss their different equities in different places, and the fact that the local dynamics in each context and region vary. The UK must be careful not to will itself into a confrontation against an adversary that does not always exist.

BANNER IMAGE: Ceremony for exchanging the documents signed during the President of the People’s Republic of China Xi Jinping’s working visit to the Russian Federation, 2018. Courtesy of President of Russia/Creative Commons Attribution 4.0 International

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

And finally in this catch-up blast, a longer op-ed for the South China Morning Post looking at some of the recent machinations between China and Iran. Had a few comments back that this was an obvious point to make, but it feels like it needs to be all considered against the broader backdrop of China’s growing influence and power in its own backyard. More on this topic to come.

All of these posts aside, spoke to the Sunday Times about Chinese investment and influence in Ireland, spoke to CNBC about China-Russia (which was translated into Hungarian), The National about the far right in Germany, to Samaa TV about ISIS in Khorasan, to The National again about bounties being put on ISIS leaders heads, an old interview was used again in this fantastic Portuguese piece in Sabato by Nuno Tiago Pinto about important Portuguese foreign fighter Nero Saraiva who lived for a while in the UK, an earlier comment to the Telegraph about Hamza bin Laden’s death was picked up again, and another earlier piece in the Sunday Times was picked up by VoA.

Why Iran has got China wrong: Beijing will follow its own playbook in countering the US-led West

  • While regional players like Iran seek to bring China into the conversation as an ally, Beijing continues to rely on the rhetoric of non-interference
  • China is focused single-mindedly on its own interests and set to get stronger as a result

e6fbd108-dea1-11e9-94c8-f27aa1da2f45_image_hires_140148

The first-ever Chinese goods train to Iran arrives in Tehran on February 15, 2016, after a 14-day journey hailed as a revival of the Silk Raod under China’s Belt and Road Initiative. China is emerging as the central power in its immediate and expanding neighbourhood, while the West tears at itself and old alliances. Photo: EPA

Buried among last week’s news of confrontation with Iran was a story that China was on the cusp of investing US$400 billion into the country’s hydrocarbon industry. This was followed late in the week by the news that Iran was going to be joining China and Russia in new naval exercises, an announcement that came a week after the Iranian Armed Forces Chief of Staff, Major General Mohammad Baqeri, visited a naval base in Shanghai.

The clear suggestion was that Iran was showing it had a strong ally in Beijing. The axis of convenience against the West was bringing Tehran firmly into its bosom.

Yet, in the face of all of this noise from Iran, Beijing was largely silent. A foreign ministry spokesman denied any knowledge when confronted with a question about the investment during a regular press briefing. The Chinese commentariat seemed mostly focused on downplaying Iran’s role in the strike on the Abqaiq and Khurais facilities in Saudi Arabia, and President Xi Jinping had a phone call with King Salman.

Reported in similar terms by both the Saudi and Chinese state media (the Belt and Road was only mentioned in Xinhua’s read-out and the Saudi statement was far more aggressive), the phone call was a decorative effort highlighting the importance of the bilateral relationship and China’s desire for events not to escalate.

And, while Beijing seemed eager to not engage, Iranian sources appeared to deny the existence of the supersized investment. On Friday, an interview emerged with the head of money and capital markets at the Tehran Chamber of Commerce stating that he had not heard anything about it.

Furthermore, Iran’s oil minister Bijan Namdar Zanganeh denied the rumours, bluntly saying, “I have not heard such a thing.” In fact, the discussion in Tehran at the moment around China is about how long the Bank of Kunlun will be able to continue to be a lifeline of sorts for the country.

Owned mostly by the China National Petroleum Corporation, the bank is a Xinjiang institution that has long served as a conduit for financial relations between China and Iran. As the rest of the world severed its links to Tehran, Kunlun has kept a connection going. The bank has faced some pressure, falling into the US Treasury Department’s sights, leading the bank to try to downplay its relations for fear of damaging repercussions for parent institution CNPC.

The result has been a paring back of financial relations between the bank and Iran, with the maintenance of only a few lines of credit focused specifically on non-sanctioned goods.

Rather, the Iranian announcements have the ring of similarity to previous announcements to have emerged from Moscow, as its relations with the West went downhill.

Back in 2014, as the West’s condemnation of Russia’s redrawing of Ukraine’s borders reached fever pitch, President Vladimir Putin headed to Shanghai where he oversaw the signing alongside President Xi of a US$400 billion energy deal between China and Russia. The deal was one which had been announced and signed a few times before, but it landed in Shanghai at a convenient moment for the Russian leader.

Again, this was not a moment without some irritation for Beijing. While China never condemned Russia’s actions in Ukraine, it was not best pleased, keeping its comments sparse. China is not keen on major disruptions to international affairs, like the attack in Saudi Arabia, especially ones which might have repercussions for Beijing.

The precedent that Russia set in redrawing borders in Ukraine was not one that China wanted widely adopted –
fearing the loss of its own restive regions. And disruptions to international energy supplies result in higher prices, something China could do without.

The question, then, is whether China is hostage to disruptive powers like Iran and Russia, or whether Beijing is, in fact, gaining the upper hand.

To better understand this, it is important to note another event over the weekend that ties the three countries together – the Taliban negotiating team’s visit to Beijing after stops in Moscow and Tehran.

Organised after the dramatic failure of the American-led talks, the whistle-stop regional tour appears to be an effort by the Taliban to understand better where things now stand. With Afghan elections around the corner and the conflict showing little evidence of concluding, all three surrounding powers have begun to worry about how they will manage the long-term instability with which Afghanistan seems cursed.

From China’s perspective, however, this is all reflective of the fact that everyone appears to want to show that Beijing is on their side. In each of these situations, the regional players have all sought to bring China into the conversation and show that Beijing is backing them.

China is judicious in avoiding apportioning blame, and at best uses the opportunity to make digs at the United States. The net result is that China emerges as the central power in its immediate and expanding neighbourhood, while the West tears at itself and old alliances.

For Beijing, there is some danger in assuming this position. First, it reinforces the image of China as the central power in a new axis of convenience against the US-led West. And second, it places China in a position of potential responsibility between some of the world’s most intractable conflicts.

Yet, it is equally possible that Beijing has factored both of these realities in and is actually happy to bolster alliances against the US.

In terms of China’s unavoidable responsibilities, this is something that has been on the cards for some time, and yet Beijing has yet to really demonstrate a requirement to have to step in.

Instead, China continues to call on the rhetoric of non-interference to simply let things play themselves out, focused single-mindedly on its own interests. Rather than taking on the activist West at its own game, China appears to be crafting its own playbook.

And while Tehran may think that it is hustling Beijing into showing its hand in its favour, the reality is that it is China that is most likely to emerge strengthened from this geopolitical dance.

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

Finally doing some catch up posting as have let things slip for a while. Been somewhat preoccupied with some real-world issues which am still working through. Likely going to see some workflow changes in the future, so watch this space!

But back to the matter at hand, back in early September this chapter emerged at last as part of an NBR publication. The paper was the product of an excellent workshop in Washington that Nadege, Brian, Ed and their colleagues had invited me to last year. The final report is a very interesting one featuring a selection of colleagues and experts writing about China’s growing security efforts along the Belt and Road.

I have reposted the executive summary here, but the whole paper is available to easily download from the NBR website. More on this topic more generally in the pipeline over the next period.

Essay from NBR Special Report no. 80

sr80_cover

The Dragon’s Cuddle
China’s Security Power Projection into Central Asia and Lessons for the Belt and Road Initiative
by Raffaello Pantucci
September 3, 2019

This essay examines how China’s growing security engagement with Central Asia provides a blueprint for how China might engage with countries through the Belt and Road Initiative (BRI) in a similar fashion.

Executive Summary

Main Argument

Xi Jinping’s decision to deliver one of the speeches announcing BRI in Kazakhstan was not incidental. It highlighted the centrality of Central Asia in Beijing’s thinking about the initiative. Consequently, it is useful to examine China’s behavior in Central Asia in some detail to understand better the longer-term consequences of Chinese influence and investment in regional countries under BRI. In the security space, Central Asia has been traditionally considered an area of Russian influence, but over time China has gradually increased its interests using five pillars for engagement: the Shanghai Cooperation Organisation (SCO), training and joint exercises, military aid, military sales, and private security companies (PSCs). Given the analysis of PSCs elsewhere in this report, this essay will focus on the first four pillars in order to better understand the long-term consequences of China’s security engagement in Central Asia and survey options for policymakers seeking to address China’s growing influence.

Policy Implications

  • Chinese security engagement in BRI countries should be understood in a broader context than military sales. Instead, a continuum of security activity should be considered, encompassing training and multilateral engagement as well as military sales. External powers seeking to understand or counter Chinese influence in this space need to engage in a range of security actions.
  • China is investing considerable resources into educating and developing the next generation of security leaders in Central Asia. The longer-term consequences of these efforts may take decades to play out but will likely require a more sophisticated level of engagement from outside powers.
  • The SCO is often considered an impotent institution that has failed to deliver any clear action. However, China and other members appreciate the consistent forum for engagement that the SCO provides, and the forum offers China opportunities to influence the normative space.

Raffaello Pantucci is the Director of International Security Studies at the Royal United Services Institute for Defence and Security Studies in London.