Posts Tagged ‘Huawei’

As usual late posting, this time a piece for my London institutional home RUSI with the wonderful Veerle Nouwens looking at the UK’s strategy towards China in the wake of the latest Huawei decision. Things definitely heating up in this space and we are working together on another pair of China projects and papers which should be due out later in the year. In the meantime, you can enjoy this and an interview panel for Al Jazeera English’s Inside Story programme that I did on China posted below, and follow this link for a conversation with the Nepal Institute for International Cooperation and Engagement (NIICE) on UK engagement with China.

 

Huawei is No Way for British Strategy on China
Veerle Nouwens and Raffaello Pantucci
Commentary17 July 2020
ChinaInternational Security StudiesUKTechnology

The UK may escape serious Chinese retaliation for its decision to bar Huawei’s equipment. But that is no substitute for the elaboration of a coherent UK strategy towards China.

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It may be too early to predict China’s reaction to the UK’s decision to bar the Huawei telecommunications company from supplying equipment to the UK’s 5G infrastructure. Beijing’s bark may yet prove worse than its bite. However, the issue has highlighted a far bigger problem for the UK. London needs a more sophisticated debate, vision and plan for managing its relationship with China.

Chinese Ambassador to the UK Liu Xiaoming has claimed to be ‘disheartened’ by the decision, alleging that it reduces trust between the two countries, and asserting that the UK has now sent a signal to foreign companies that it is not open to their business. Chinese media outlets have largely reacted by blaming the US for the UK’s decision. Repercussions pointed out in Chinese media overwhelmingly revolve around the substandard 5G network that the UK will have without the inclusion of Huawei.

The discussion in China beyond this has largely been muted. Given the volume of noise that the debate had previously attracted, it would be surprising if there were no reaction from Beijing. China might choose to find a way of swiping at London that does not link necessarily to the Huawei decision itself, but paints it against a series of issues it is displeased with, such as the UK’s reaction to Hong Kong, re-examination of Chinese investment in the UK and declarations about the need to uphold freedom of navigation in Asian waters. The UK’s commercial relationship is a likely target. At a political level, a cooling of bilateral ties likewise would be unsurprising.

However, Beijing has not yet entirely written off the UK relationship, judging by media coverage which appeared to leave scope for future links. For, as was stated in an article published in the Global Times – the English-language tabloid of the official party People’s Daily – the UK should ‘stop moving in the wrong direction so that damaged bilateral ties can recover’. And another article in the same media outlet noted that while Beijing must respond in order to show it cannot be bullied, it is unnecessary to turn this into a China–UK confrontation.

The UK still represents an important market for potential flagship Chinese projects in Europe, whether in nuclear energy or high-speed rail. The all-important financial sector is one that Beijing would struggle to effectively target with sanctions. And, as the City of London is the leading hub (outside Greater China) for the Chinese renminbi, it would not be in Beijing’s interest to do so. Moreover, there are many other investments and commercial links between the UK and China beyond Huawei, and the biggest British champions in the financial sector have already gone on record to support China’s positions.

While Beijing may expect the upcoming investment-screening measures to more heavily scrutinise Chinese foreign direct investment into the UK’s critical national infrastructure, it will do itself few favours by tightening the screws on London. China-sceptic voices calling for a hardened approach will be amplified in Westminster and reverberate across Europe and other like-minded partners. The threat of an alliance against Chinese 5G tech dominance looms on the horizon. Europe does not just serve as a market for Chinese infrastructure investments, but also remains key in China’s access to technology for its own development. Unless Beijing would like to see more doors close – particularly as it remains on the road to post-pandemic economic recovery – it would be unwise to lash out too severely.

It is also worth remembering that while China has recently reacted with sanctions against some who have attracted its ire, these have been fairly toothless. Sanctioning Lockheed Martin for US military sales to Taiwan does little damage to the firm’s bottom line. Targeting US senators unlikely to travel or do business in China is not going to change their lives. And it has let the Huawei decision pass by in other cases. To little fanfare two weeks ago, Singapore’s two biggest telecommunications providers made the decision to not use Huawei in their 5G roll-out. The damage to Singapore–China relations was so limited that earlier this week President Xi called newly elected Prime Minister Lee Hsien Loong to congratulate him on his election victory. Japan made the decision against Huawei back in late 2018, and President Xi was still eager to travel to the country on a state visit earlier this year (the trip was only postponed because of the global pandemic). So, the current showdown with the UK does not need to be an unnecessarily politicised issue. Indeed, the same Global Times noted that the UK is not the US, Australia or Canada, a statement which is perhaps intended as a put-down, but may also indicate a differentiated reaction.

BUT THE FUTURE?

The question is what this means for the future of UK–China relations. The issue of Huawei seems to have been decided, but it is just a single point in a much larger picture. The UK has now been to-ing and fro-ing on Huawei for years, transforming what is a technical issue into a proxy for the UK’s debate about how to engage with China. This political conversation about Chinese investment in the UK’s national critical infrastructure is important, but there is a need for a clearer articulation of the UK relationship towards China.

To be sure, there are significant challenges in the relationship. Beijing has done little to endear itself of late. Its aggressive behaviour in every direction has been exacerbated by a hectoring tone from its diplomats who appear to be trying to outdo each other in their demonstrations of indignation and anger. China continues to detain Canadian researchers Michael Kovrig and Michael Spavor on spurious charges as ransom for the detained Huawei executive Meng Wanzhou who is facing extradition proceedings in Canada. Atop this, while Beijing may believe that what it does to its own people is nobody else’s business, this goes against a fundamental belief in universal human rights to which many countries ascribe. It is also unclear why Beijing appears unable to understand, or unwilling to care, that people outside of China will interpret how it treats its own people as how it might ultimately treat them.

Yet not everything that China does has been disastrous. Putting aside the many questions that remain over coronavirus, Beijing has managed to by and large contain the situation within its own borders. Its economy is starting to pick up – though underlying structural problems still exist. And looking beyond the virus, whatever happens, China is still going to be there. With almost one sixth of the world’s population living within its borders, China will be a force on the planet (much like India will). Issues such as climate change will not get resolved by Western European powers alone. Future pandemics will not respect the artificial boundaries of alliances that we create. A globalised economy so bifurcated that the UK does not touch China in some way is likely impossible – or so expensive that it is unattainable.

The UK government may disagree and dislike the governing Chinese Communist Party (CCP), but the CCP shows little evidence of collapsing in the short or medium term (nor can we be certain we will like what might come in its wake). We must deal with the government we face, not the one we wish it to be. London and its partners are quickly catching up in bettering their understanding of Beijing. This knowledge should aid Whitehall in devising a comprehensive China strategy – one that identifies UK priorities, including human rights, the rule of law and the plight of those in Hong Kong and Xinjiang, as well as the Canadians who remain imprisoned in China.

This does not mean that the UK’s bilateral relationship with Beijing must be fundamentally antagonistic. China is an important partner in some of the biggest issues of our time. These are not yes or no questions, unlike the Huawei decision. And of course, Beijing must reciprocate engagement. Nevertheless, a UK strategy on China must remain firm on matters of UK core interests, but be prepared to cooperate effectively in others. This is a phrase that will ring familiar in Beijing.

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.

A new short piece for London’s Evening Standard this past week looking at the discussion about China that the UK seems not to be having at the moment. Rather than a nuanced discussion, it has become very polarised at the moment and seems to be going further in this direction at the moment. Going to be a hot topic for a while I suspect.

This aside, spoke to AFP about the relationship of Xinjiang to the broader Belt and Road Initiative (which was picked up in a few places) and rather randomly the Italy-Russia relationship to Sputnik. Separate to this, spoke to a few in the wake of the terrible attack in Sri Lanka, including Financial Times, Wall Street Journal, Economist, Washington Post, NPR, and the Dutch Nieuwsuur and NRCFinally, for those more visually inclined, please check out this video done for my home institute of RUSI on the Sri Lanka attack.

China is both an economic opportunity and a threat

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The hysteria around the Government’s decision on Huawei and 5G is distracting from a more mature conversation about Chinathat the UK has not yet had.

How are we to establish a manageable existence alongside a country that is becoming one of the world’s biggest economic pillars, while at the same time incarcerating Western researchers, holding vast numbers of its own population in arbitrary detention and continuing to stymie open political debate?

It is a power we want to engage with, but it threatens some of our closest allies. How we deal with this should be the discussion we are having.

There are questions around Huawei. Large Chinese companies are close to the State. Firms contain Communist Party cells, and national legislation obliges them to respond to demands from the Chinese security apparatus. 

Whether we should allow this sort of company to build parts of our telecoms infrastructure is a question best suited to those who are technically minded and understand the level of risk posed, and how (or if) it can be managed.

Yet this narrow question has overwhelmed the debate around China. You are either for Huawei or against it, in much the same way that you either want to confront China or engage with it. But this binary choice is a false one. The world is more complicated than that.

China is both an opportunity and a threat. Beijing is rising as a major power that is investing in, and developing, parts of the world we have long worried about. Having lifted millions of its own people out of poverty, it is helping countries the UK has spent billions of pounds on.

There are problems with its approaches, many of which are being aired during the current Belt and Road Forum in Beijing. But China is offering an opportunity that developing countries are also keen on. And from a UK perspective, this is a good thing. We also agree with its creation of the Asian Infrastructure Investment Bank and its views on pollution and international peacekeeping.

Yet Beijing is also threatening some of our closest allies, arbitrarily jailing Western nationals and ruling its people harshly. Japan and India are Asian giants equally close to the UK that have tense border confrontations with China.

But Delhi and Tokyo are trying to balance these issues with the reality that Beijing’s growth is the major economic story in their back yard. They are often trying to find ways of both engaging and challenging Beijing at the same time.

We too must understand how we are going to manage the fact that we want China’s co-operation and support on important issues but need to be deeply concerned about others. We have to both remonstrate and work with it, in concert with our close allies.

China is complex, and our response requires an equal nuance. Having a more sophisticated national conversation would be a good place to start.

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