In response to the changing geopolitical landscape in Asia, both China and the United States attempt to alter the regional order in their own favour, both in the economic and security realms. This article shows how diverging views on future arrangements are leading to strategic shifts and increasing tension between these two Great Powers. As part of its quest for Great-Power status, China has been actively pushing its regional initiatives such as the Belt and Road Initiative (BRI) and the Asian Infrastructure Investment Bank (AIIB), as well as adopting assertive security policies towards its neighbours. In contrast, in order to counter China's growing influence America's regional strategy is undergoing a subtle shift from ‘rebalancing to Asia’ to focusing on the ‘Indo-Pacific’ region. However, amid an intensifying trade war and other challenges facing the region, China has chosen to moderate its proactive foreign policy-orientation in the past few years. In particular, China has made attempts to downplay its domestic rhetoric, rebuild strategic relationship with India and Japan, and to reassure ASEAN states in the South China Sea. In response to the Indo-Pacific strategy, it would be more effective for China to articulate a more inclusive regional vision and promote an institutional framework that also accommodates a US presence in the region.

This article assesses how south-east Asian countries and the Association of Southeast Asian Nations (ASEAN) have responded to the ‘free and open Indo-Pacific’ (FOIP) strategies promoted by the United States and the other countries in the Quadrilateral Security Dialogue (the ‘Quad’: US, Japan, Australia and India). Their nuanced ripostes imply a persistent commitment to hedging and shifting limited alignments in the face of growing great rivalry and the lack of a clear FOIP vision among Quad members. In the face of external pressure to take sides, the ASEAN states are likely to keep hedging through working selectively with China and the United States. Given the United States' apparent preference to balance China and Trump's disregard for multilateralism, ASEAN's ability to maintain its centrality in the evolving regional architecture is in doubt—despite the Quad countries' (belated) accommodation of ASEAN in their FOIP strategies. However, the success of the US strategy depends on Washington's ability to build and sustain the requisite coalition to balance Beijing. ASEAN has undertaken efforts to enhance bilateral security collaboration with China and the United States respectively. In doing so, ASEAN is arguably seeking to informally redefine its centrality in an era of Great Power discord and its ramifications for multilateralism.

As a geographical concept, ‘Indo-Pacific’ has existed for decades. As a political and strategic concept, it has since 2010 gradually become established in the foreign policy lexicon of some countries, especially Australia, India, Japan and the United States. However, China seems to be reluctant to identify itself as part of the Indo-Pacific; Chinese leaders believe that the US-led Indo-Pacific strategy aims to contain China's rise. While the battle between the two geographical concepts ‘Indo-Pacific’ and ‘Asia–Pacific’ may be fairly easily settled in the future, US–China strategic competition has just begun. Will the Indo-Pacific become a battlefield for US–China rivalry? How will China cope with the US ‘free and open Indo-Pacific’ (FOIP) strategy? How will other regional actors respond to the US–China strategic competition in the Indo-Pacific? What are the strategic implications of the ‘Indo-Pacific’ concept for regional order transformation? How will the Indo-Pacific be institutionalized, economically, politically and strategically? This article introduces the January 2020 special issue of International Affairs, which aims to address those questions, using both country-specific and regional perspectives. Seven articles focus on the policy responses of major players (Australia, China, India, Indonesia, Japan and ASEAN) to the US FOIP strategy and related US–China rivalry in the region. A further three articles examine the profound implications of Indo-Pacific dynamics for regional institution-building and for geopolitical and geo-economic architecture.

This closed-door roundtable explores possible strategic shifts in the Indo-Pacific between now and 2024.

Focusing on trade security, climate change disruptions and security cooperation, it aims to enhance the understanding of the regional goals of, and strategic relationships between, the key countries active in the region.

The workshop is part of a larger project funded by the Strategic Policy Division of the Australian Department of Defence.

The project includes workshops in the United States, the United Kingdom, France, Japan, India and the Pacific Islands (Tonga).

Asia’s political class learnt many lessons on digital governance in 2019, not all of them positive.

The prolonged protests in Hong Kong and India, led by disaffected young citizenry and enabled by social media tools, powerfully demonstrated how things could spiral out of control when the virtual and the real streets come together.

Not surprisingly, governments across the region are taking a step back. Instead of placing the citizen at the heart of digital public policy – with privacy, trust, security and inclusion as drivers of digital governance – Asian governments are focusing instead on surveillance and command and control, which contradicts the spirit of a decentralized Internet and undermines citizen’s rights.

Asia’s digital governance is fragmenting from the global norm and morphing into two platforms with remarkably similar characteristics.

One is a China-driven model aptly called the Great Firewall where surveillance of citizens is an explicit objective and any external material deemed to be subversive is kept out. A complementary model has also emerged more recently, which can best be described as China-light, which seeks to emulate the control aspects of the Great Firewall.

There are of course overlaps between emulators of the China model (this list includes Vietnam, Myanmar, Cambodia and Laos) and those pursuing China-light (Singapore, India, Indonesia, Bangladesh, Sri Lanka, the Philippines, Thailand and Malaysia). A common thread running through these two approaches, which differ only in intensity and scope, is the belief that the state is best positioned to police social media and protect the rights of citizens.

This was not how it was supposed to be. A decade ago, Asian political leaders spoke about the virtues of an open internet. Such talk has faded, and a narrowing of Asia’s digital space is taking place against a backdrop of an intensifying trade war between America and China, where regional supply chains run the risk of a decoupling into distinct Sino and American spheres, upending Asia’s durable economic model of the past few decades.

Digital fragmentation in the world’s fastest growing region, with five G20 members, will complicate efforts to build global governance and standards.

Asia’s digital landscape

Asian governments, including democratic ones, have developed an unhealthy obsession with what their citizens are up to on a daily basis. Their solution is round-the-clock monitoring in cities and towns, powered by new surveillance technologies.

Name tagging and facial recognition to track movement of citizens has become pervasive across the region, with China emerging as the preferred source of technology, knowledge, and techniques. While India’s Supreme Court has ruled that privacy is a fundamental right, translating this into concrete citizen’s protections will be difficult with the Modi government eager to emulate China’s approach.

Asian governments are also following China in requiring that their citizen’s data be housed within national borders and are rebelling against the established practice of data offshoring.

In the post-Snowden era and amidst increasing cyber risks, there are rational national security reasons for why governments may want to ring-fence customer data within national boundaries. However, Asian governments are paying little or no attention to how companies are using customer data within national boundaries, with widespread abuses going unchecked.

Global standards are still evolving and there is a strong case here for a uniform regional approach, perhaps via ASEAN or APEC, on standards governing customer privacy, payments, data collection and handling. Big tech companies and platforms operate across much of Asia and a regional approach will curb their current instinct of conducting regulatory arbitrage.

There is a genuine problem in Asia, as elsewhere in the world, with the proliferation of fake news and extremism. But instead of addressing the source of this problem, governments are clamping down by generously expanding the definition of fake news (Singapore) or by shutting down the internet altogether (India, Sri Lanka, and China being serial offenders).

As disseminators of news of all stripes, including the fake variant, the big tech firms have a primary responsibility in policing their platforms. However, the regulatory capacity of many Asian governments to monitor this is weak and in crisis situations, governments prefer to shut the pipes altogether.

Digitalization of course is not all about surveillance and holds the promise of driving inclusion. There is considerable hype within Asia on the promise of fintech as an enabler of this inclusion.

Hong Kong and Singapore are licensing new digital banks, India’s UPI (unified payments interface) is reducing friction in domestic payments and China’s BAT companies (Baidu, Alibaba, Tencent) are disrupting traditional commerce and payments, and seeking to expand in the region.

However, there is an elite focus in many of these initiatives, with the target market being the region’s rising middle class rather than those at the bottom of the income ladder. Making fintech work for all will require micro-initiatives with the support of NGOs, local governments and small enterprises, with the objective of digitalizing microfinance.

Here developing Asia will again benefit from learning from each other and in building regional approaches. India’s Aadhar for example, with appropriate security safeguards, is a model for Asia in terms of building digital identity.

Given differing regional and national objectives, it is difficult to imagine a global accord for digital governance any time soon. However, by signing on to the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Transpacific Partnership (CPTPP, the successor to the TPP), Asia has consistently demonstrated its leadership in trade and regional governance.

This is why the region needs to come together to ensure that the promise and potential of digitalization flows evenly and equitably to the region, with the region’s 3.8 billion citizens at the heart, rather than at the margins of sensible public policy.

The coronavirus outbreak in China poses a tremendous test for Beijing. Beyond the immediate public health crisis, the Chinese Communist Party faces a stuttering economy, growing public anger and distrust, and a potentially heavy blow to its global reputation.

The hesitant early response to the outbreak sheds light on the way the Chinese bureaucracy approaches crises at a time when the party leadership is tightening control at almost all levels of society. At first, officials in Wuhan attempted to censor online discussions of the virus. This changed only after President Xi Jinping’s call for a much more robust approach was followed by a sudden increase in the state media coverage of the outbreak. There is no doubt that Xi’s intervention will greatly speed up the response to the crisis, which should be welcomed.

Despite China’s experience with the SARS epidemic between 2002 and 2004, the sluggish reaction by officials in Wuhan should not have come as a surprise. The tendency among bureaucrats to play down crises is deeply entrenched. And, ironically, the party leadership’s recent push for greater bureaucratic accountability and its promise of stiffer punishment for those who take a 'do little' approach have also contributed to the habit of covering up disasters.

Xi has launched an ambitious programme to reform the governance of the Communist Party and re-centralize political control. This has reinforced the tendency of officials to avoid making important decisions and instead to wait for instructions from the party leadership.

For decades, local governments have made things happen in China. But with tighter regulation of lower-level bureaucrats, civil servants across the system now seem less ready, and able, to provide their input, making ineffective and even mistaken policy more likely.

Moreover, the coronavirus outbreak could not have happened at a worse time. Last year was tumultuous and saw China fighting an economic slowdown while also dealing with an increasingly hostile international environment. Now, as the authorities take steps to contain the disease, economic activity has come to a near standstill, with public transport curbed and restaurants and entertainment venues shuttered.

This contrasts with SARS, when double-digit growth in gross domestic product enabled Beijing to raise government expenditure to tackle the outbreak. Today, the Chinese economy is running into some of the most difficult challenges it has faced since the global financial crisis.

In response to the slowdown in growth, Beijing has adopted loose fiscal policy, with an emphasis on public investment. It also continues to push big banks to cut interest rates for individual borrowers and small businesses which were already suffering from the effects of the trade war with the US before the coronavirus struck.

The outbreak should give new impetus to governments, not least those that have close economic ties with China. Being a great power with ambitions for global leadership, as well as domestic reform, is not easy. Even without multi-party elections, it involves increasing, and often uncomfortable, scrutiny. As President Xi himself has put it: the road is long and the task is weighty.

This article was originally published in the Financial Times.

This roundtable explores possible strategic shifts in the Indo-Pacific between now and 2024. Focusing on trade security, climate change disruptions and security cooperation, it aims to enhance the understanding of the regional goals of, and strategic relationships between, the key countries active in the region.

The workshop is part of a larger project funded by the Strategic Policy Division of the Australian Department of Defence. The project includes workshops in the United States, the United Kingdom, France, Japan, India and the Pacific Islands (Tonga).
 

Internet shutdowns in Asia have become frequent and persistent, an ominous sign of shrinking public space for debate and discourse. The shutdowns have become an irresistible option for governments of all stripes and ideological affiliations. Democratic India, Sri Lanka, Indonesia and the Philippines are prodigious offenders. So are Asia’s more repressive regimes, notably China.

In their defence, governments have offered real and imagined threats to national security as reasons for shutting down the pipes. It is useful to examine these claims as well as to objectively frame the issue. Are internet shutdowns in Asia legitimate and can be defended and explained as threats to national security? Or should we take a broader approach where international law, norms, values, rights and indeed economic stability could be invoked to curb this invidious practice?

Let’s start with the shutdown in Kashmir, where Indian authorities clamped down on internet access for a straight 165 days, described by rights group Access Now as the ‘longest shutdown ever in a democracy’. The Kashmir Chamber of Commerce and Industry estimates that the shutdown had huge economic costs, estimated at over £1.9 billion.

The economic cost of the continuing surveillance and shutdown in China’s Xinjiang province is likely to be higher. But India is a democracy and could be a role model, which is why the recent assertion of Communications and Information Technology Minister Ravishankar Prasad is worrying. He asserted in Parliament that the Indian citizen’s right to the internet was not a fundamental right. ‘While right of internet is important, security of the country is equally important…Can we deny (that) the internet is abused by terrorists…?’.

The minister’s primary defence of the shutdown – that the internet was being abused by terrorists and others to foment unrest – has some merit. Our starting point therefore is that big tech platforms should be doing a significantly better job in monitoring content and in removing material designed to provoke violence and hatred. This is the original sin and Asian governments are right to worry about messaging platforms, for example, becoming preferred channels for venom and hate speech.

To date, the big tech firms have made the right noises about monitoring and moderating content, but they have not gone far enough, providing governments with the excuse to routinely shut down access. To be blunt, self-regulation of the platforms is not working and tougher global regulation, enforcement and sanctions, possibly via the G20, would help.

At the same time, better policing of the platforms will not resolve the issue entirely because governments regard internet shutdowns as a useful way to restrict human rights and to consolidate political control and surveillance over citizens. The international community – including nation-states, NGOs and the private sector – needs to come together and embrace two overarching principles:

First, digital access is a fundamental human right and integrated into global declarations and norms.

Second, to protect fragmentation and Balkanization of the internet, the digital pipes which carry data across national boundaries should be embedded into international law as being part of the global commons (just like oceans are under maritime law). This would raise the bar on countries which frequently restrict digital access to their citizens.

Sensible though these recommendations might seem, it is obvious that many Asian governments would be loath to sign up to global declarations which would limit their policy options at home. There is an economic dimension to internet shutdowns, as the Kashmir case makes clear, which could be addressed by naming and shaming, just as the OECD’s Financial Action Task Force does for countries falling foul of money laundering regulations. Recommendations include:

• Digital access should be included in the UN’s Human Development Index.
• The World Bank’s closely followed Doing Business Index (DBI) should score countries favourably based on their commitment to offering unimpeded access to the internet. China and India watch the DBI rankings very closely and will be forced to pursue a more liberal approach if their rankings fall precipitously.
• Since internet shutdowns have a clear economic cost, particularly in payments and financial services, the International Monetary Fund (IMF) should make an annual determination of member countries (as part of its surveillance mandate) of the impact of shutdowns on economic activity and financial stability.

Finally, all Asian governments have declared a public commitment to drive financial inclusion by providing digital access and identity to the poor and vulnerable. This mandate is at odds with frequent internet disruptions. A small vendor in Kashmir, Xinjiang or elsewhere in the region has limited or no recourse when the pipes are shut down. Central banks in the region need to step in by offering some level of protection, just like deposit insurance coverage.

It is clear that many of these recommendations would be rejected outright by many Asian governments. They regard internet shutdowns as part of their policy toolkit to deal with external and internal threats to national security. In pursuing such a rigid approach, governments are wilfully curbing their citizens’ space for debate and ignoring a much broader issue of rights to digital access.

Armed with a hammer, it is tempting for governments to regard the internet as a nail. The international community and citizens’ groups have an obligation to make such hammering very expensive.

The outbreak of communal violence in Delhi this week is the worst in India’s capital for decades. It both reflects and will reinforce India’s polarization.

That polarization is between the view that India represents homogeneity, grounded on the fact that its citizens are overwhelmingly (around four-fifths) Hindu (the view of the ruling Bharatiya Janata Party [BJP] of Narendra Modi), and the alternative that India represents diversity – its population includes hundreds of millions of non-Hindus and speakers of dozens if not hundreds of different languages.

India’s polarization is reflected in the reaction to the three days of violence in northeast Delhi, which left hundreds injured and, at the time of writing, 34 dead. The government and its supporters portray the protesters as almost exclusively Muslim fifth-columnists, their actions facilitated by Islamist extremists or Pakistan or even the opposition Congress Party.

The alternative view is that violence has been initiated by state-supported thugs, with the police turning a blind eye. In this view the protesters reflect a broader spectrum of Indian society, with a shared aversion to communalism and a commitment to India’s secular ideals.

Delhi recently held a state election, and while the BJP lost, some of the rhetoric used by its politicians was vitriolic. One compared protesters to rapists and murderers. Another led his supporters in chants of ‘shoot the nation's traitors’, referring to the protestors.

In such an environment, in which Hindu vigilantes feel empowered and India’s Muslims feel defenceless, Delhi’s worst communal violence for decades erupted.

Some have drawn parallels between events in Delhi with the violence in Gujarat in 2002 when at least 1,000 people – the majority Muslim – were killed. There, the accusation against Modi, then chief minister of the state, was that the state turned a blind eye to violence.

In general, past outbreaks of communal violence in India have been dampened by the rapid imposition of a curfew and deployment of substantial security forces to enforce it. Such an approach was notably absent in both Gujarat and, thus far, Delhi.

The BJP, emboldened

The violence takes place in the wake of two controversial actions the BJP has taken since its re-election in 2019.

First, the BJP-led government revoked the special status of the state of Jammu and Kashmir. To the BJP, the special status accorded to Jammu and Kashmir, India’s only Muslim-majority state, was simply the most egregious example of their long-held view that other parties pandered to the Muslim community.

While the move gained some international criticism, the general response in India to the crackdown that followed – including the restriction of internet access and arrest of a number of politicians – was muted.

Then, the government put forward the Citizenship Amendment Act (CAA).

In 2013, a year before the BJP’s first term in office, India’s Supreme Court ordered that the National Register of Citizens (NRC) be updated in the northeast Indian state of Assam.

Migration from what is now Bangladesh has been a contentious issue in northeast India region since colonial times and was the cause of widespread agitation, and conflict, in the region from the late 1970s.

While militancy continued thereafter, tension was partly resolved by the 1985 Assam Accord, which stated that people who had moved into Assam after 1971 (after the creation of Bangladesh) should be deported. However, this provision was not acted upon until the 2013 order.

In August 2019, the final NRC was published. Just under 2 million people were found to be non-citizens. A substantial proportion of these, however, appear to have been Hindus, a dilemma for the BJP.

To solve this, the government put forward the CAA, under which Hindus (along with followers of several other religions) could become Indian citizens. Muslims, however, were excluded. The BJP argued that the act was a generous gesture to illegal immigrants who faced persecution in neighbouring countries, and not a discriminatory gesture.

Unlike moves in Kashmir, the CAA sparked nationwide protests across India. While Assam is something of a special case, concern over the possible nationwide rollout of the CAA caused alarm. The government has recently been ambiguous over its intentions, though had earlier directed states to establish at least one detention centre.

The economy, creaking

That this is all taking place during an economic slowdown provides additional cause for concern. Many of India’s long-running internal conflicts subsided in recent years as the economy grew rapidly. But for the past year and a half, growth has slowed each quarter, to just 4.5% year on year.

The common assumption has been that India needs to grow at 8% to stand still, given the need to create millions of jobs. Unemployment currently stands at a 45-year high. Among 20 to 24-year olds, unemployment stands at 37%. India’s demographic dividend is being wasted.

For now, India seems trapped in a self-created vicious circle. The more it focuses on social and religious division, the more its economy will suffer. And while its economy worsens, the need to double-down on division as a distraction for its underemployed young men will intensify.

Only a few months into 2020, the coronavirus pandemic has presented a huge challenge for China’s ruling party against an already tumultuous 12 months of economic slowdown coupled with an increasingly hostile international environment. The crisis looks set to worsen a deteriorating relationship between the US and China as the two countries battle to avoid further economic ramifications. It has also undermined President Xi Jinping and the Chinese Communist Party’s domestic political legitimacy and economic growth.

The panellists will examine the wider geopolitical fallout of the coronavirus pandemic and discuss China’s future economic planning. How will the COVID-19 outbreak further strain the US-China relationship? What effect will this have on global trade and vulnerable supply chains at a time when cooperation is needed more than ever? And to what extent is the ruling party addressing growing concerns over job losses, wealth inequality and a lack of social mobility?

This event is only open to Major Corporate Member and Partner organizations and selected giving circles of Chatham House. If you'd like to attend, please RSVP to Linda Bedford.