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The West, a New Haven for the ‘Muslim Brotherhood’s Planetary Nebula’?

By SADF – Nov. 30, 2022 Online conversation on The West, a New Haven for the ‘Muslim Brotherhood’s Planetary Nebula’? On November the 29th at 16H.00 (CET), SADF promoted an online conversation in the web platform StreamYard titled ‘The West, a New Haven for the ‘Muslim Brotherhood’s Planetary Nebula’?’ The conversation included the Member of the European Parliament (EPP, […]




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One on One with John DeDakis

One on One with John DeDakis, Dec. 4, 2022 My interview with the impressive John DeDakis. John DeDakis is a former CNN Senior Copy Editor and writer for the Emmy and Peabody-Award winning news program “The Situation Room with Wolf Blitzer” from 2005-2013. He is also the author of the Lara Chadwick Mystery series. DeDakis […]




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The Secret Apparatus Book Review: Conspiracy? Yes, A Century of Muslim Brotherhood Jihad

By Walter Donway, Savvy Street originally published on Dec. 4, 2022 Book Review: The Secret Apparatus: The Muslim Brotherhood’s Industry of Death by Cynthia Farahat, Post Hill Press, Bombardier Books (2022) A grim irony of twentieth-century history (but, of course, also predating it) is that the most horrendous threats to humanity have simply been too monstrously evil […]




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Farahat’s Interview with FDD

FDD’s Foreign Podicy Podcast with Cynthia Farahat Dec. 27, 2022 The Muslim Brotherhood has been around for close to a century but most people – certainly most Americans and Europeans – know very little about it. Is it reformist and non-violent as its spokesmen and defenders claim? Or is it – as Cynthia Farahat argues in a […]




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Newsroom: US mortgage debt to surpass $14 trillion in 2022

January 12, 2022 (New York, NY) – The total value of residential mortgage debt in the US will continue to experience solid growth into 2022 and 2023. In our inaugural […]




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Newsroom: TikTok surpassed YouTube as the third-most-popular influencer platform among US marketers in 2021

TikTok will have more US users than Snapchat and Pinterest in 2022   January 24, 2022 (New York, NY) – YouTube is the “OG” of influencer marketing platforms, and it’s […]




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Newsroom: Carvana Now Among Top 10 US Retailers by Ecommerce Sales

Carvana is America’s fastest-growing e-tailer   February 23, 2022 (New York, NY) – Americans have taken to buying cars online, so much so that ecommerce car dealer Carvana is now […]




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Newsroom: Amazon Music Overtakes Pandora as No. 2 in the US

Spotify still No. 1 by wide margin February 24, 2022 (New York, NY) – Pandora, once the dominant player in terms of digital music streaming, will be eclipsed by Amazon […]




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Newsroom: Insider Intelligence Slashes Ad Spending Forecast for Russia and Eastern Europe Amid Conflict

Total media ad spend in Russia to drop nearly 50%   March 30, 2022 (New York, NY) – Insider Intelligence expects the ongoing war in Ukraine to have a significant […]




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Newsroom: TikTok Ad Revenues to Surpass Twitter and Snapchat Combined

Worldwide revenues will triple in 2022   April 11, 2022 (New York, NY) – TikTok’s worldwide ad revenues will triple this year and surpass that of two competitors combined, according […]




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Newsroom: 34 Million US Adults Own Cryptocurrency

3.6 million will pay with crypto in US; payment value to spike 70% in 2022   April 20, 2022 (New York, NY) – Cryptocurrency usage will continue its meteoric rise, […]




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Newsroom: Twitter MAUs Set to Grow Just 1.5% This Year

May 10, 2022 (New York, NY) – Elon Musk has his work cut out for him as he takes the reigns at Twitter. Worldwide user growth will be essentially flat […]




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Newsroom: US Ecommerce Will Cross $1 Trillion in 2022

Amazon’s share declines for first time; Apple surpasses eBay in online sales June 14, 2022 (New York, NY) – This year will mark a major US retail milestone, as ecommerce […]




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Newsroom: Buy Now Pay Later Transactions Will Surpass $100 billion by 2024

June 22, 2022 (New York, NY) – Will Apple’s entry into the buy now, pay later (BNPL) space upend the already competitive industry? That’s the question many are trying to […]




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Commentary: Secret Service Agents Placed on Leave After Trump Assassination Attempt

Commentary by Susan Crabtree originally published by RealClearPolitics and RealClearWire Three weeks ago, Acting Secret Service Director Ronald Rowe angrily pushed back on senators’ calls to immediately fire or discipline key agents directly responsible for the security failures that led to the assassination attempt against former President Trump at last month’s campaign rally in Butler, …




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Commentary: The Tale of Two Conventions

Commentary by Newt Gingrich originally published by RealClearPolicy and RealClearWire Historians will look at the 2024 Democratic and Republican national conventions as harbingers of profound changes in American politics and government. Callista and I participated in the Republican National Convention in Milwaukee, so we got a good sense of who was there and what was …




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Investigation: Waste of the Day – Border Security Team Hasn’t Made One Arrest

Investigation by Jeremy Portnoy originally published by RealClearInvestigations and RealClearWire Topline: A $1.4 million state task force created to protect the border between New Hampshire and Canada has not encountered a single illegal border crosser this year, according to data obtained by the American Civil Liberties Union. Key facts: The state has spent $353,425 so …




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Commentary: Harris Pushed To Explain Policy Shifts in First Interview as Dem Nominee

Commentary by Philip Wegmann originally published by RealClearPolitics and RealClearWire Kamala Harris shrugged. Asked about former President Donald Trump’s questioning of her racial identity, the vice president replied, “Same old, tired playbook. Next question, please.” And then she laughed. “That’s it?” protested CNN’s Dana Bash, probing for more during the first sit-down interview with the …




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Investigation: Waste of the Day – Chicago Police Misconduct Costs Taxpayers Millions

Investigation by Jeremy Portnoy originally published by RealClearInvestigations and RealClearWire Topline: Chicago spent over $384 million settling lawsuits alleging misconduct by police officers between 2019 and 2023, according to WTTW News Key facts: A federal court ordered Chicago in 2019 to change the way it trains and disciplines police officers after an investigation found that …




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Commentary: Mayors Can Combat Campus Unrest This School Year

Commentary by Liz Katz originally published by RealClearPolitics and made available via RealClearWire As a Jewish parent whose daughter graduated from college in May, I witnessed firsthand the violent anti-Israel demonstrations and commencement cancellations that plagued campuses last academic year. While students are excited for their return this fall, I’m gripped by a sense of …




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Commentary: Second Assassination Attempt Forces New Reckoning for Trump, Secret Service

Commentary by Susan Crabtree and Philip Wegmann originally published by The second assassination attempt against former President Donald Trump while he was golfing at one of his Florida courses on Sunday is forcing the United States Secret Service to further tighten security around the Republican presidential nominee and to reevaluate just how much Trump should …




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Commentary: Creating Jobs and Changing Lives – The Return of American Manufacturing

Commentary by Maggie Miller was originally published by RealClearFlorida and RealClearWire In the heart of Riviera Beach, Florida, a company called K12 Print is redefining what it means to do business in America. This isn’t just about profits and productivity for John DiDonato, the CEO and founder. While financial success is part of the equation, …




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Commentary: The New Data on Migrant Crime

Commentary by John R. Lott, Jr. originally published by RealClearPolitics and RealClearWire The new data on all the criminal noncitizens coming into the U.S. is shocking. The U.S. Immigration and Customs Enforcement (ICE) checks the background of illegal aliens they have in custody. But, the administration’s letter to Rep. Tony Gonzales (R-TX) shows that as …




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Investigation: Waste of the Day – Florida Hospitals Spent $566 Million Caring for Illegal Immigrants

Investigation by Jeremy Portnoy originally published by RealClearInvestigations and RealClearWire Topline: Florida hospitals spent $566 million providing care for illegal immigrants in the last six months of 2023, according to a recent report from the state’s Agency for Healthcare Administration. Key facts: Gov. Ron DeSantis passed a law in May 2023 instructing all hospitals that …




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Investigation: Waste of the Day – New Yorkers Spend $25 Million on Ex-Governor’s Legal Troubles

Investigation by Jeremy Portnoy originally published by RealClearInvestigations and RealClearWire Topline: The State of New York has spent $25.4 million to defend former Gov. Andrew Cuomo from sexual harassment lawsuits and criminal investigations over the last three years, The New York Times reported this month. Key facts: More than half of the money was spent …




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Investigation: Waste of the Day – Walz Campaign Donors Received $15 Billion in State Business

Investigation by Jeremy Portnoy originally published by RealClearInvestigations and RealClearWire Topline: Minnesota Gov. Tim Walz accepted $890,000 in campaign donations from employees – including C-suite executives – ­of 434 state vendors between 2019 and 2022, a new report from OpenTheBooks found. Those same companies collected nearly $15 billion in payments from the state between 2019 …






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The singularity probability of a random symmetric matrix is exponentially small

Marcelo Campos, Matthew Jenssen, Marcus Michelen and Julian Sahasrabudhe
J. Amer. Math. Soc. 38 (), 179-224.
Abstract, references and article information






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A novel method produces native light-harvesting complex II aggregates from the photosynthetic membrane revealing their role in nonphotochemical quenching [Bioenergetics]

Nonphotochemical quenching (NPQ) is a mechanism of regulating light harvesting that protects the photosynthetic apparatus from photodamage by dissipating excess absorbed excitation energy as heat. In higher plants, the major light-harvesting antenna complex (LHCII) of photosystem (PS) II is directly involved in NPQ. The aggregation of LHCII is proposed to be involved in quenching. However, the lack of success in isolating native LHCII aggregates has limited the direct interrogation of this process. The isolation of LHCII in its native state from thylakoid membranes has been problematic because of the use of detergent, which tends to dissociate loosely bound proteins, and the abundance of pigment–protein complexes (e.g. PSI and PSII) embedded in the photosynthetic membrane, which hinders the preparation of aggregated LHCII. Here, we used a novel purification method employing detergent and amphipols to entrap LHCII in its natural states. To enrich the photosynthetic membrane with the major LHCII, we used Arabidopsis thaliana plants lacking the PSII minor antenna complexes (NoM), treated with lincomycin to inhibit the synthesis of PSI and PSII core proteins. Using sucrose density gradients, we succeeded in isolating the trimeric and aggregated forms of LHCII antenna. Violaxanthin- and zeaxanthin-enriched complexes were investigated in dark-adapted, NPQ, and dark recovery states. Zeaxanthin-enriched antenna complexes showed the greatest amount of aggregated LHCII. Notably, the amount of aggregated LHCII decreased upon relaxation of NPQ. Employing this novel preparative method, we obtained a direct evidence for the role of in vivo LHCII aggregation in NPQ.




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A feminist and postcolonial approach to nuclear politics

A feminist and postcolonial approach to nuclear politics Expert comment NCapeling 20 July 2022

The July issue of International Affairs includes eight articles on the global nuclear order and eight more covering Chinese lending, abortion rights, and global security.

Disarmament and arms control has been a consistent area of debate in this journal for the past century, as underscored in our recent archive collection of research on a century of war and conflict.

The July edition moves this debate forward with a collection of papers guest-edited by Shine Choi and Catherine Eschle. The section ‘Feminist interrogations of global nuclear politics’ includes work by nine authors exploring seven global case-studies that help rethink nuclear politics and feminism.

As the guest editors note in their introduction, the section brings together research on nuclear power and nuclear weaponry to ‘begin the process of decentring 1980s white, western experiences of the global nuclear order in feminist IR’.

The articles speak to three core themes: they provide evidence of the ongoing destructive nature of nuclear technologies, extend understanding of the gendered, racialized, and colonial dimensions of nuclear discourses, and unearth the impact of colonialism on the global nuclear order.

Global nuclear politics

Anne Sisson Runyan examines the gendered effects of uranium mining and nuclear waste dumping on North American Indigenous women, showing how the nuclear cycle tends to have a disproportionate effect on certain communities but also that the area of disposal remains problematic.

This is a global problem – for example, the Royal Navy has yet to successfully dispose of a single redundant nuclear-powered submarine and is rapidly running out of space to store further vessels.

Hebatalla Taha goes back to the early years of nuclear development and, using Egypt as a case-study, her article argues the early visualizations of the atomic age were fluid and ambivalent. She concludes – perhaps controversially – that feminizing nuclear politics and nuclear images will not lead to disarmament but rather reinforce the nuclearized world. The piece is a welcome addition to the emerging field of visuality within international relations.

Gendered images, symbols and metaphors play a key role in narrating, imagining and criticizing, but also sustaining, the nuclear-armed world.

Hebatalla Taha, Assistant Professor of International Relations, Department of Political Science, American University in Cairo

Anand Sreekumar brings together feminist and Gandhian thinking to suggest a way for Narendra Modi’s government to move beyond the possession of nuclear weapons as symbols of power. In doing so, he also critiques the binary labels of ‘West’ and ‘non-West’ that often frame our understanding of the world.

Lorraine Bayard de Volo revisits the Cuban missile crisis – a point in time where nuclear war looked likely. She compares the actions of Khrushchev, Castro, and Kennedy and finds the pursuit of masculinity led to the rejection of approaches considered more feminine, such as diplomacy and negotiation – the crisis was exacerbated by what might be referred to now as toxic masculinity.

Sweden’s and Finland’s recent application to join the nuclear alliance NATO lends a particular urgency to Emma Rosengren’s article on the original Swedish decision to renounce the development of nuclear weapons during the Cold War. Her article concludes much of the emphasis on power in international relations has contributed to a gendered and racialized nuclear order.

Similarly, Laura Rose Brown and Laura Considine’s article on the Non-Proliferation Treaty finds that ‘gender-sensitive’ approaches focus almost exclusively on women’s inclusion as opposed to feminist policy analysis. They end by making recommendations for future policymaking.

Finally, Rebecca Hogue and Anais Maurer look at the anti-nuclear poetry of Pacific women. This article raises fundamental questions about what is currently considered to constitute evidence. They point to the role of oral history in many communities and the tendency of policymakers and social scientists to ignore this source of understanding.

National politics with international implications

This edition’s ‘Editor’s Choice’ is Jeffrey A. Friedman’s article which questions whether US grand strategy is dead in a post-Trump world. Running counter to much of the existing literature, he suggests there is a strong bilateral commitment to existing partnerships and alliances within the US political establishment.

Bipartisan support for deep engagement is at least as strong today as it has been at any other point since the end of the Cold War.

Jeffrey A. Friedman, Associate Professor of Government, Dartmouth College; Visiting Fellow at the Institute for Advanced Study, Toulouse

Following the US Supreme Court decision over Roe vs Wade, it is important to note the issue of abortion rights can have an international dimension. Megan Daigle, Deirdre N. Duffy, and Diana López Castañeda reveal that, although Colombia now has the most progressive legal framework for abortion in Latin America, intense backlash persists as legacies of the civil war overshadow the issue and lead to barriers to safe abortion care.

China

Ric Neo and Chen Xiang look at Chinese public opinion and finds that citizens can be upset by foreign policies of other states even when they have no impact on their daily lives. It reminds us of the potency of nationalism and the importance of who controls the prevailing narrative.

It was not the Chinese party-state’s grand strategy, or even a purposeful effort, to indebt Zambia.

Deborah Brautigam, Bernard L. Schwartz Professor of International Political Economy and Director, China Africa Research Initiative, Johns Hopkins University School of Advanced International Studies (SAIS)

Deborah Brautigam examines China’s role in creating Zambia’s debt crisis, arguing this has not been brought about by a centralized master plan which would give China control over Zambia. Instead, the crisis has been caused by the failure of Chinese bureaucracy with too many state organs offering funding in an uncoordinated fashion.

Security and defence

Using Iran as a case-study, Henrik Stålhane Hiim argues the development of nuclear-capable ballistic missiles is a key indicator when looking for potential nuclear proliferators.

Eray Alim demonstrates the impact of an external great power interacting with local states. Russia’s involvement in the Syrian civil war has allowed it – sometimes through restrictive and punitive measures – to ensure Turkey and Israel do not harm its interests in the region.

Nina Wilén draws on fieldwork in Niger to study how Security Force Assistance (SFA) impacts on Niger’s security sector and compares this to global trends in security. She finds these developments contribute to blurred borders and confusion regarding labour division in the security sector and points to wider questions for intervenors in developing local units.




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Beijing briefing: is the Belt and Road going nowhere?

Beijing briefing: is the Belt and Road going nowhere? The World Today mhiggins.drupal 29 July 2022

Scaling back infrastructure plans and investment in the Global South could cause China problems, says Yu Jie.

Over the past two decades, China specialists around the world have tried to analyze Beijing’s approach to developing countries in the Global South, including Africa, Latin America, parts of Asia and the Pacific islands.
 
China’s relationships with nations in these regions vary considerably. In some, ideology or geography are the biggest influencing factors; for others, economic and commercial gains matter most. However, many of Beijing’s recent engagements have attracted more criticism than praise. A domestic economic downturn means that Beijing has tightened its belt, spending less on overseas development.

When President Xi Jinping came to power, he was keen to highlight how China’s power could shape and dictate the global agenda across multilateral platforms. His vision was for China to project discursive power and become an agenda-setter rather than a rule-follower. The Global South is the route to fulfilling his proposal.

To this end, China’s Belt and Road Initiative (BRI) and the latest Global Development Initiative are the means to Beijing’s ends. The former, launched in 2013, focuses on building physical infrastructure linking Global South countries; the latter aims to allow development through grants and capacity-building in line with the UN’s Sustainable Development Goals.

China’s engagements with Africa and Latin America seem characterized by the rapid extension of Chinese finance to resource-rich African states, particularly oil producers, since the early 2000s. From 2003, for example, oil-backed infrastructure loans were made to the Angolan government for reconstruction after decades of civil conflict. By 2016, they totalled some $15 billion. 

However, Beijing’s appetite for offering cheap loans in exchange for natural resources has shrunk. It faces a dilemma between protecting the value of its investments while also defending its strategic interests and maintaining its self-image as a partner, not a predator, of Africa.

Some of China’s Global South investments include serious climate and financial risks


Beijing has historically preferred bilateral relationships for its development finance and investments over multilateral ones. This allows China control over the terms and conditions, while demonstrating its unwillingness to accept without question rules and frameworks devised years ago by western countries.

China has already realized that some elements of its engagements with the Global South are no longer the flavour of the day, partly because some of its programmes include serious climate and financial risks without proper third-party due diligence in place. 

Growth through gigantic infrastructure investments of the sort that drove China’s own economic miracle is not a panacea applicable everywhere. Nor is relentlessly seeking endorsements from its neighbours and other countries from afar.

China wants to be a ‘brother’ to the Global South

Ideologically, China wants to be seen and respected as a leader of the Global South. Since its founding in 1949, the People’s Republic has maintained a ‘brotherly’ relationship with developing countries, notably in the UN context, where it remains a member of the G77 group of developing nations. 

The West has responded to China’s development agenda with its own infrastructure programmes, such as Washington’s Build Back Better World and the European Union’s Global Gateway. 

Great power rivalry should not be ignored, but it shouldn’t blind world powers to the need for collaboration in tackling global poverty and sustainable development. Nor should Beijing’s efforts to adjust its diplomatic and aid programmes to become a likeable partner of choice in search of a better economic future, be disregarded.

Developing countries recovering from the pandemic crave meaningful assistance rather than diplomatic rhetoric


Since launching BRI, China has poured hundreds of billions of dollars into building infrastructure in the Global South. And many developing countries hope that advanced economies and China can continue to act to alleviate poverty. But the brakes have been applied to Beijing’s spree as a result of China’s domestic economic slowdown. It has no wish to continue spending its foreign reserves.

To go forward, China must remain open to what others want – or fear – from Beijing’s development initiatives and infrastructure investments. Many developing countries, facing insurmountable costs and damage exacerbated by the Covid pandemic, crave meaningful assistance rather than diplomatic rhetoric. 

The ultimate test of Beijing’s economic statecraft is whether it can engage with the Global South beyond relationships built on financial resources and political capital. It must also become more self-aware of how its words and deeds are received – and then act accordingly. Showering dollars and renminbi is not always guaranteed to win hearts and minds. In this respect, Beijing has more bridges to build.




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Cracking down on kleptocracy

Cracking down on kleptocracy Interview LJefferson 4 August 2022

In the third of a series of interviews with the Queen Elizabeth II Academy faculty, Alex Cooley examines the challenges of reigning in kleptocratic networks.

Recently you spoke at the Queen Elizabeth II Academy about kleptocracy, and the impact of the individual sanctions used to target kleptocrats since the war on Ukraine began.

As you can imagine, the problems of dark money and  kleptocracy are familiar to Londoners. People tend to associate kleptocracy with Russia; why is that? Is its rise linked to the global decline of democracy that has taken place over the past 15 years?   

This is a great question. Kleptocracy literally means ‘rule by thieves’, and in contemporary usage refers to the plundering of economies and societies by political elites for their own personal gain. 

It does not necessarily have to track with democratic backsliding, but in many countries, it has for a couple of reasons. First, over the last 30 years, as globalization has expanded, with more integrated financial markets and greater provision of services to support this expansion (accountants, shell company providers, lawyers), transnational kleptocracy networks have also become more expansive as there is now a more sophisticated co-mingling of licit and illicit funds through these networks of globalization.

Second, like the illiberal norms and practices that are promoting democratic backsliding, kleptocracy networks should be thought of as global in scale and reach. Corruption tends to be framed as an illegal act that takes place within states, while international rankings of levels of corruption by watchdogs like Transparency International tend to reinforce this view.

Kleptocracy literally means ‘rule by thieves’, and in contemporary usage refers to the plundering of economies and societies by political elites for their own personal gain.

However, corrupt acts that may initially occur domestically are facilitated by a number of transnational actors and processes, many of them operating out of so-called ‘clean’ countries. At the end of the day, for a kleptocrat to profit from his or her stolen loot, they must store those funds where their value will be guaranteed by strong property rights protections. That means that the destination for kleptocrats is often the West, jurisdictions that enjoy rule of law, that have good financial services, and that guarantee privacy to client services. 

To give  a brief example of a hypothetical kleptocrat, take a regional official in China who has skimmed money off a state contract; that money will be booked into by an accounting firm in Hong Kong, then will be used to purchase an offshore vehicle – another tool of globalization – a shell company that is registered in the British Virgin Islands (BVI) but is sold, as part of a complex structure of nested companies, by a shell company provider, such as the Panama-based law firm Mossack Fonseca, at the centre of the Panama Papers exposé, which specialized in selling complex shell company structures to conceal the true owners.

Then, that entity will open an actual corporate bank account in a global financial centre, say in Switzerland. Finally, that account from a ‘clean’ jurisdiction may purchase a luxury asset, such as a condominium in New York, without having to disclose the actual beneficial owner. That is a relatively simple transaction, but it includes jurisdictions from Hong Kong, the BVI, Panama, Switzerland, and New York to abet this initial act of local embezzlement by a mid-level Chinese official. 

You’re telling the story of why this has become transnational and global, but this is very much a supply-driven story. Is there a demand-side to this story?  

Sure, and this is the other side of globalization. You asked initially why so many Russians and former Soviet individuals were associated with kleptocratic schemes. This is because in the 1990s, as these institutions and tools of globalization proliferated, there was a chaotic economic transition underway in the former Soviet Union.

Economic transition in places like Russia, Ukraine, Kazakhstan andTajikistan, transpired at the time of this financial deregulation, where there was a general perception that all capital account openness was good and that the international community assisted these countries with financial liberalization. The offshore dynamic is particularly pronounced in the post-Soviet countries because the state-building, regime consolidation, and reform of these economies coincided with this era of financial globalization.  

Why has the UK government turned a blind eye to this problem for so long? Is there profit that has been made? Is it too difficult?  

This is a really good question. First, the UK is the centre of many of the service providers that are absolutely critical for the operation of kleptocratic networks. There are two sides to being a kleptocrat. One is the money-laundering side, where dubiously acquired loot needs to be turned into legitimate assets that are safe and protected by the rule of law – this requires Western-based wealth managers, bankers, lawyers, real estate brokers and accountants.

The UK is the centre of many of the service providers that are absolutely critical for the operation of kleptocratic networks.

The second is reputation laundering. How do you recast yourself in the global spotlight from a controversial figure who made money in controversial transactions into an internationally respected, global business and philanthropist? Doing so requires that you donate to philanthropic causes, secure appointments on corporate and non-for-profit boards, support higher-education institutions and retain lobbyists, advisors, and cultivating allies within your residing country’s political system. These are all ways in which you can try and manage your image.

Also, because of the UK’s strict libel laws, you have leaders in public relations and reputation management industries that are retained to closely monitor all media mentions of that individual, and to challenge or quash any negative characterizations about them. 

It is easy to see why the UK is attractive to kleptocrats, but why has it taken the UK government so long to respond? Is it just a simple calculation: this is money that is hard to turn down and there is at least plausible deniability of its more nefarious sources? 

It is really good money and kleptocrats engage in various legitimate business and cultural activities in order to obscure their sketchy pasts. It is very difficult to prove that their original wealth was actually obtained illegally. And, until now, there has not been a strong international norm and cooperation against kleptocrats the way there is with illicit actors such as terrorists or drug traffickers. 

Is it also because it is not strictly speaking illegal? Is there a sense that there is ‘money from uncertain sources being put to good purposes’? 

Many will make this argument too! If the source of funds is not strictly illegal, then why not actually use this wealth to ‘do good’? For example, why not have scholarships for students who need them at the university?  As long as there is no overt interference in the terms of these donations, what is the harm?

Kleptocrats’ acts of charity can be leveraged in legal proceedings or in public opinion to burnish their reputations and establish track records of being good citizens.

The problem with this line of reasoning is that it allows kleptocrats to create positive profiles. Indeed, these acts of charity can be leveraged in legal proceedings or in public opinion to burnish their reputations and establish track records of being good citizens.

It also creates supportive constituencies in society. For example, if you buy, even with your questionably acquired wealth, a major football team and you take it to the peak of success, you are revered and now have a platform to even contest previous critical accounts of you. 

Do you think that the war in Ukraine will prove to be an inflection point in terms of how other advanced democracies in Europe and North America treat this problem, and not only the UK?

I hope so – I have seen some hopeful trends. For instance, some countries have expedited the implementation of important anti-corruption legislation that they already passed. And there is a broader understanding that it is now a matter of national security to actually know who owns what in your country, whether it’s a company, commercial property, a bank account, or a holding company. 

I also think the Russian oligarchs themselves have been fatally stigmatized.. They can no longer control the overwhelmingly negative image and association with the Kremlin that this ghastly war has brought. Also, we are seeing push in the UK for reform on SLAPPS, while the National Crime Agency has established a dedicated ‘kleptocracy cell’ designed to investigate the hidden wealth of oligarchs and possible sanctions avoidance.

Russian oligarchs have been fatally stigmatized. They can no longer control the overwhelmingly negative image and association with the Kremlin that this ghastly war has brought.

But the latter will require sustained funding and staffing. Unfortunately, most of their assets are not in luxury yachts that are relatively easy to seize, but embedded in complex webs of opaque global transactions. It will be challenging to even identify these assets, let alone freeze and confiscate them. 

We have talked a lot about Russia for obvious reasons, but if you go down the list, who’s next when it comes to the source of this problem? 

Countries with especially powerful ruling families that have been in power for a long time, and that have some sort of rentier economy, either extractives, natural resources, or big former state-operated enterprises that perhaps have been privatized.

For example, oil-exporting countries like Equatorial Guinea, Angola, Kazakhstan, Turkmenistan and Azerbaijan have incubated classic kleptocrats along with transnational reputation laundering schemes involving Western institutions.   

During your talk with the Academy fellows at Chatham House, you suggested that the pressure on kleptocrats would also have broader geopolitical effects. Can you say more about this? Is there a risk that measures intended to excise kleptocrats from our economies leads to greater divisions globally?

Whether there will be comprehensive anti-kleptocracy reforms in the US, London, Canada and Switzerland  remains an open question, but already  kleptocrats are shifting away from Western jurisdictions and going further Eastward; they are going to Singapore, and they are also going to the Gulf, especially the UAE.

There are a number of reports now of Russian oligarchs relocating and residing there and taking their assets with them. The UAE is not part of the sanctions regime even though it is a US security partner, and in fact it has scored very poorly on illicit money laundering rankings and watchdog lists.




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China’s political chessboard: The 20th party congress

China’s political chessboard: The 20th party congress 14 October 2022 — 1:00PM TO 2:00PM Anonymous (not verified) 30 August 2022 Online

As the CCP gathers for its quinquennial political event, experts analyse its national, regional and global relevance.

In October, the Chinese Communist Party (CCP) assembles to appoint new leaders and discuss political, social, economic and foreign policy priorities for the coming 2022–2027 period and beyond.

One of the key outcomes of the meeting of China’s political class is the future of current President Xi Jinping. Technically, as he is at the end of his second five-year term, Xi was due to step down this year. The next generation of leadership was supposed to step in, as the next stage of the party’s evolution takes place.

However, this is unlikely to happen. The president has consolidated his power, manoeuvring allies into key positions and developing a faction of support in the party. With ‘Xi Jinping Thought’ added to the party charter and China’s constitution and term limits removed, Xi shows no intention of stepping down.

However, the president is not all-powerful. Critics and alternative factions operate within the party. His second term has also had to contend with the botched early handling of the pandemic, worsening ties with the US, and a slowing economy.

In an increasingly unpredictable world, events in the 2022 Party Congress will be hugely impactful for China’s and global affairs. What trajectory will Beijing take?

Key questions the panel discuss include:

  • How does the Party Congress function and what does it mean for domestic Chinese politics?

  • Will President Xi’s political and economic legacies continue under new political leaders and policymakers?

  • What does President Xi’s next role in China’s government tell us about his power?

  • As the 20th CCP Party Congress takes place, is there unity and cohesion at the top of the political structure?

  • Will the Party Congress have any impact on China’s international relations? Particularly the US?

 As with all Chatham House member events, questions from members drive the conversation.

Read the transcript. 




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Russia–China defence and security relations: Insights from the expert community

Russia–China defence and security relations: Insights from the expert community 13 September 2022 — 3:00PM TO 4:00PM Anonymous (not verified) 31 August 2022 Online

Experts share insights on Russia–China military, defence, and security relations. 

In the defence and security realms, Russia–China relations resemble more pragmatic cooperation based on shared, calculated interests than an alliance.

This event presents and discusses key findings from a recent expert survey conducted by Chatham House with the aim to gather insights on Russia–China military, defence, and security relations.

Survey responses helped identify areas of bilateral cooperation but also crucial friction points and obstacles that prevent the relationship from developing further, as well as policy pathways for the West.




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Russia-China Defence and Security Relations

Russia-China Defence and Security Relations

This project explores the military and security linkages between Russia and China.

jon.wallace 5 September 2022

The project seeks to provide a nuanced understanding of Russia-China relations in the defence and security realms.

It also seeks to understand Russian political and security perceptions regarding Chinese inroads into what Russia considers its ‘near abroad’, as well as other sources of irritation and tension in the bilateral relationship. It offers recommendations to guide NATO policy responses.




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A guide to the Chinese Communist Party's National Congress

A guide to the Chinese Communist Party's National Congress The World Today rescobales.drupal 21 September 2022

In the first of a three-part series examining the global importance of the CCP’s 20th National Congress, Yu Jie explains how it makes its big decisions.

Why does the CCP National Congress matter?

The world’s most populous country and its smallest state have little in common with one exception: how they select their leader. Like the Vatican, the Chinese Communist Party (CCP) shrouds its leadership selection process in secrecy.

Every five years, a week-long conclave – the Party Congress – is held and at its end a new cohort of leaders is presented that will steer the world’s second largest economy for the next five years.

October’s Congress will reveal the depth and breadth of Xi Jinping’s power

The congress is the most important date in China’s political calendar. It not only selects China’s leadership team but acts as a signpost indicating the direction the country will be heading in the near future, with implications for decades to come. It also reveals the breadth and depth of power held by Xi Jinping, the party’s general-secretary.

The 20th CCP National Congress, opening on October 16 and expected to last a week, is taking place during unsettling times. While Xi Jinping is expected to embark on his third term as general-secretary of the party after the removal of a two-term limit in February 2018, it is hardly a crowning glory. Xi’s China is battling an economic maelstrom at home while juggling fraught foreign relations abroad.

What does the National Congress do?

Quite simply, the CCP National Congress is the gathering that defines China’s political leadership and sets the tone for its relationship with the rest of the world.

It serves to fulfil three primary functions:

First, it sets the party’s principal agenda across all policy sectors, from macroeconomics to the price of food. During the week, it draws up a consensus-based evaluation of the party’s work over the past five years, which includes a detailed examination of the party’s current situation.

Second, it introduces any revisions to the party constitution deemed necessary, for instance on changes to the criteria for leadership recruitment or amendments to the party’s ‘guiding ideology’.

Third, it selects the leadership team that will steer China for the next five years, a function that attracts the most international attention but is not the sole purpose of the congress.

How is the party leadership team chosen?

The congress comprises 2,300 delegates representing all levels of the party hierarchy across 34 provinces and regions – from the governors of towns and cities, to Olympic champions, astronauts, and even the odd stand-up comedian to mark the ‘inclusiveness’ of the party.

The votes that decide the next cohort of party leaders come from three committees only: the Central Commission for Discipline Inspection, with 205 members and 171 alternate members (alternate members are simply substitutes to replace a member if they die, retire or are dismissed); the Central Committee, with 204 members; and the Politburo, with 25 members, only one of whom is a woman.

Unlike multiparty elections in liberal democracies, neither the full 25 members of the Politburo nor the seven members of its Standing Committee are nominated by or directly voted for by constituents.

A procedure known as ‘democratic recommendation’ is essentially a straw poll that includes all congress participants. They are then given a ballot listing the names of around 200 Politburo candidates in stroke order – the Chinese equivalent to alphabetical order. This short-listing process is completed in the run-up to the congress. Some pundits asserted that this process was put on hold after 2017, yet this has not been formally confirmed within the party constitution.

A few senior delegates may express their preferences to their colleagues anonymously during this process. All the shortlisted candidates must meet the criteria for Politburo membership, which means serving at either a ministerial rank or above or in the People’s Liberation Army at military region level or above and being younger than 62.

Based on the result of this straw poll, and more importantly on the preferences of current Politburo members, the incumbent Politburo and its Standing Committee will approve the nominees, conclude the Seventh Plenum of the 19th Party Congress and call for the 20th Congress. The delegates at the Party Congress then ceremonially cast their votes for the Politburo at the Party Congress although the result is pre-agreed, a procedure somewhat similar to the US Electoral College.

What are the rules for choosing Politburo members?

The Politburo Standing Committee (PSC) consists of between five and nine members, with seven selected at the 19th Congress. It is the supreme decision-making body of the Communist Party as well as the People’s Republic of China.

If the 20th Congress follows convention, there are three de-facto rules to be followed:

First, Politburo and Standing Committee members must retire at 68. This age limit is known as ‘Eight down, Seven up’.

Second, new appointments to the PSC are drawn exclusively from regular Politburo members. The only exceptions to this rule have been Xi Jinping and Li Keqiang, who were appointed at the 17th Party Congress in 2007.

Standing Committee members must retire at 68, but it is highly unlikely that 69-year-old Xi Jinping will stand down

This exception follows the third convention, under which PSC appointees are among the youngest senior party leaders eligible. Potentially three vacancies could arise in 2022, as Xi himself is 69 but it is highly unlikely that he would step down. That would be a radical departure from past precedents.

The extent to which past procedure is applied could act as a signal as to whether Xi Jinping is consolidating his power, while the size of the standing committee will be scrutinized to assess how much power Xi wields.

If the procedure for leadership appointments at the 20th Congress deviates from these conventions, it could indicate two things. First, the CCP faces a new set of challenges and requires the introduction of new rules to shape the top leadership. Or, second, Xi has gained substantial personal power that allows him to bypass the collective leadership system endorsed by Deng Xiaoping and choose appointees to suit his own taste. There has thus far been little evidence from the official media to reflect on any changes.

Changes in party institutional constraints, however, raise the danger of undermining governance at home and China’s relations abroad.

Read the two further articles in this series: the second discusses the key domestic policy themes that Xi Jinping is expected to outline at this year’s congress; the third analyses the foreign policy issues likely to be discussed at the congress.   

 




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Beijing briefing: Party power remains a male preserve

Beijing briefing: Party power remains a male preserve The World Today mhiggins.drupal 27 September 2022

Yu Jie explores why so few women have won leadership roles in Communist China.

UPDATE: Since this article was published at the end of September, the incoming members of the Politburo and the Standing Committee were announced at the 20th Chinese Communist Party Congress on October 22. The party broke more than two decades of convention by not appointing any women to the Politburo or its Standing Committee. The sole woman among the outgoing 19th CCP Politburo, Sun Chunlan, will retire. Only 33 women rank among the 376 members of the 20th CPC Central Committee, which elects the Politburo - less than one in 10.


As the curtain of the 20th Chinese Communist Party Congress gets ready to rise, the lack of female representation in Beijing’s corridors of power attracts international attention once again.

Female participation in Chinese finance, science, sports or other aspects of society is relatively healthy. Yet there has never been a single woman at the apex of power in the party nor any who has held a seat on the Politburo Standing Committee, the supreme decision-making body for the party and the state.

Historically, China has been run by a number of powerful women starting in 307BC during the first imperial era of the Middle Kingdom. In the Qin Dynasty the Queen Dowager Xuan held de facto power for 35 years during the Warring States period.

Mao Zedong proclaimed that ‘women hold up half of the sky’

More than 2,000 years later, Empress Dowager Cixi wined and dined her European visitors at the Imperial Summer Palace. She was also responsible for the demise of the late Qing Dynasty. Their legacies continue to fascinate and inspire stories in contemporary China.

In modern times, Mao Zedong, one of the founders of the Chinese Communist Party, proclaimed that ‘women hold up half of the sky’. While Chinese law states that women and men should have equal rights in all aspects of political life, the reality is that women remain marginalized in politics, even after the economic and social transformation seen in the past few decades. Chinese men continue to dominate political power.

The top three party, military or state leadership positions have never been filled by a woman and none of China’s 26 ministers is female. There is only one woman among the 31 party bosses that control China’s provinces, municipalities and autonomous regions and only one woman among the 25 members of the all-powerful Politburo, and she oversaw the government’s response to the Covid pandemic. She is Vice-Premier Sun Chunlan, a former party boss of Fujian Province. Among the 371 members of the Central Committee, which elects the Politburo, there are only 30 women, which is less than one in 10.

Women are less likely to join the Communist Party

It is difficult to explain why female participation in the Chinese elite politics is so low but social convention certainly plays its part. Despite increasing financial independence and much improved career prospects, Chinese women are still expected to run the household and look after the children while holding down a full-time job. This surely reduces opportunities to seek public offices.

Although unspoken, China’s experience of handing power to a woman may be another reason why the party is hesitant to put a female in charge. Jiang Qing, better known to the outside world as Madame Mao, was China’s de-facto First Lady until 1976. She was one of the architects of the ‘Great Proletariat Cultural Revolution’, which ushered in a decade of chaos and political upheaval and brought the country to a standstill.

Successive leaders have been determined to prevent a repeat of this misfortune so no woman has been chosen for a top leadership role. But perhaps the main reason for the absence of women in top positions is the way people move up the party ranks.

Women make up around 49 per cent of China’s 1.4 billion population, yet they account for only about 30 per cent of the Chinese Communist Party membership. Once inside the party they are often handed less competitive positions. Rising through the ranks requires party members to achieve certain career breakthroughs. Such success makes them eligible to participate in high politics.

The majority of China’s top leaders have served as a party chief of a province or municipality, a position women rarely achieve. Consequently, few female candidates are considered eligible for more senior roles.

By the time they qualify for Politburo membership, too often they are fast approaching the retirement age for Chinese women politicians: 55. As it is rare to secure a spot on the Politburo under that age, women are virtually ruled out from joining this exclusive group of 25 people.

The Iron Lady of China

There has been one exception since the early 2000s. Vice-Premier Wu Yi, who is known as the Iron Lady of China, was described by Forbes magazine as the third most powerful woman in the world. She led China into the World Trade Organization and successfully bid for the 2008 Beijing Olympic Games. However, her success has been an exception, not a rule.

While Chinese women have been given a nominal egalitarian status with female astronauts, female Olympic champions and female Nobel Prize laureates in place, beneath the surface older practices of patriarchy still hold firm. Liberated or not, the quest for a Chinese female leader under the Communist Party is a long way off.




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The new geopolitics of nuclear power

The new geopolitics of nuclear power The World Today mhiggins.drupal 27 September 2022

States may be looking to build or restore nuclear plants, but they will need to bypass Chinese and Russian sector dominance, says Sung-Mi Kim.

Against the backdrop of a worldwide energy crisis, the global nuclear market may be seeing a renaissance with growing interest in nuclear energy.

Sceptics are being compelled to rethink the trade-off calculus of nuclear power for the first time since the 2011 Fukushima disaster, which prompted countries to postpone or phase out nuclear power. The nuclear option is again being seen as a way of boosting a nation’s energy autonomy and its ability to weather the volatility caused by unpredictable Russian gas supplies.

Russia supplies more than a third of global nuclear fuel-related services


Adoption or expansion of nuclear energy capability will not allow a country to be free of Russian influence entirely given its dominant presence in the global nuclear sector. Rosatom, Russia’s state-controlled power corporation, and its subsidiaries, make Russia the leading exporter of nuclear power plants. Russia also supplies more than a third of the global fuel-related services, namely uranium conversion and enrichment. Notably, Russia has been capable of building these into an attractive financial package for importing countries, backed by generous state support.

Like Russia, Chinese government-owned nuclear corporations have started to make forays into export markets as part of its Belt and Road Initiative and ‘Go Out’ policy, which encourages companies to invest overseas. Both China and Russia have a strong comparative advantage in offering competitive state-backed financing schemes for nuclear products and services.


In the meantime, nuclear investment in advanced economies in the West have tended to remain stagnant. The International Energy Agency reports that of the 31 reactors built in the past five years, 27 are of Russian or Chinese design.

Given current market conditions and the technological complexity of the nuclear fuel cycle, new entrants will find it difficult to acquire energy autonomy through nuclear power. They will have to rely on foreign suppliers to build, operate and maintain their nuclear plants and supporting infrastructure. It typically takes a decade to build a nuclear plant and start generating electricity, and nuclear plant deals are built on a decades-long commitment of the parties to forge a political, technical, regulatory and scientific partnership that goes beyond purely commercial terms.

Nuclear export, therefore, is often a long-term, whole-of-the-government effort involving diplomatic skills and geopolitical calculations, and is subject to global oversight to ensure the peaceful use of nuclear energy.

The US is building strategic nuclear partnerships

In response to the Russian and Chinese dominance of the civilian nuclear sector, American nuclear industries are asking the government to streamline the export-licensing process and provide them with support. The US government is also establishing strategic partnerships with nuclear-capable allies such as South Korea to win procurement contracts. South Korea has recently made a U-turn in its nuclear policy. Its new president Yoon Suk-yeol intends to revive the role of nuclear power to help meet the country’s climate targets and has vowed to export 10 nuclear power plants by 2030.

In Japan, where nuclear energy production was halted after the Fukushima nuclear meltdown, a new policy platform was launched in 2019 to enhance public-private collaboration for nuclear research and development.

Intensifying geopolitical tensions between the US and its allies on one side, and Russia and China on the other, will inevitably affect nuclear market dynamics. Domestic economic slowdowns and international sanctions will be a stress test for the export potential of Russia and China.

For instance, in May 2022, Finland eliminated Rosatom from its consortium to build a nuclear power plant, citing delays and increased uncertainties stemming from the invasion of Ukraine. In 2020, Romania cancelled its nuclear deal with China, instead securing an agreement with the US to build two more reactors for its Cernavoda plant. The decision was seen as a move to align Romania with US intentions to sideline China.


 In March 2022, when the Czech Republic officially launched a tender to build a new reactor at the Dukovany nuclear plant, Rosatom and Chinese state-controlled nuclear exporter CGN have been excluded from the tender on security grounds.

As countries try to wean themselves off price-volatile gas and decarbonize their economies to meet climate targets, new commercial opportunities are opening up for the nuclear industry. At least 15 countries are building reactors, according to the World Nuclear Association. Some, such as China, are building more than one.

More than 30 countries are considering, planning or starting a nuclear programme. There is also a growing need for replacing or extending the lives of ageing reactors. It is in this context that the commercial, geopolitical and regulatory aspects of nuclear energy will play an increasing role in the  geopolitical contest for money and influence.




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Interview: Steve Brooking

Interview: Steve Brooking The World Today mhiggins.drupal 27 September 2022

The Afghanistan expert tells Mike Higgins the Taliban are reneging on their promises and that the region’s powers must intercede.

Steve Brooking is the former chargé d’affaires at the British Embassy in Kabul and was special adviser to the UN Assistance Mission in Afghanistan from 2015 to 2021.

How has day-to-day life become worse for Afghans since the United States and its allies withdrew abruptly from Afghanistan in the late summer of 2021?

That depends on where those Afghans are living and what they were doing. Life for lots of ordinary rural Afghans hasn’t changed much, it is still subsistence farming. Until last year, the success stories of girls in education, new hospitals, schools and clinics were concentrated in the towns and cities.

When the Americans left, there was a mass exodus of the educated middle class


In fact, there has been a shortage of teachers and medics for years. Many Afghans left those jobs to work for the coalition forces or the international development presence in the country. When the Americans left last year, along with them was a mass exodus of the educated middle class from the country, which affected the cities and towns. The emerging middle class was also hit by the disappearance of the jobs that went with those foreign troops.

Spending power has collapsed. Many Afghans in cities support a dozen or more extended family members, but now they don’t have the money. Afghans are relying on external humanitarian aid but the agencies are only getting about half what they are asking for because there are competing humanitarian crises – in the Horn of Africa, Syria, Ukraine.
 
In September, Washington announced it would transfer $3.5 billion into a Swiss-based trust fund to try to stabilize Afghanistan. How far will that money go and are the US wise to avoid Afghanistan’s central bank?

It is enough to make a significant humanitarian difference. Bypassing the Afghan central bank indicates that the US government is keen the money does not fall into the hands of the Taliban, or international terrorists. The American assassination of the Al-Qaeda leader, Ayman al-Zawahiri, in Kabul in July showed the Taliban have not kept to their promise to prevent the country being used as a terrorist base.

Also, it is clear the US doesn’t want to be seen to be supporting the Taliban government or to start recognizing it or getting anywhere near recognizing it. It remains concerned about all sorts of violations of basic rights – the most egregious being girls not allowed in secondary schools and women not being allowed to work except in certain sectors.

The Americans and other donor countries were paying teachers’ salaries through the UN but that stopped when the new Afghan school year began in March and girls still weren’t allowed back to school.

The Taliban need to show a responsible level of governance and ability before people will trust them with their money. But it’s difficult to see the Taliban making the necessary concessions to move beyond humanitarian aid to receive development funding.

As the attention of the US is focused on Ukraine and further eastwards towards China, what will be the cost if the West doesn’t engage with Afghanistan seriously?

You could argue the costs will be minimal. The Americans tried a lot over 20 years, they failed and then left overnight. It caused complete shock around the region. To be fair, though, the Americans warned the region’s powers that they were leaving and that this would be a problem in the region unless they got help from those same powers.

The Taliban complain about sanctions, travel restrictions and the freezing of assets. But they have made no attempt to honour the Doha Agreement


Europe and the UK are more likely to experience the fallout from a deteriorating Afghanistan. The refugee flows will continue. To stem that, they want to persuade the Taliban to make a more inclusive government.

There are few levers to pull with the Taliban, unfortunately. They complain about sanctions, travel restrictions for various leaders, the freezing of assets. But they haven’t made any attempt to speak to the political opposition or honour the terms of the Doha Agreement, let alone engage in other issues.

I think the onus to act falls on the regional powers because they will feel the first effects of instability in Afghanistan.

China, Russia, India and other regional powers are members of the Shanghai Cooperation Organization (SCO), which had its summit in Samarkand last month. Some have been arguing that the SCO should take a more active role in Afghanistan, which has SCO observer status.

Iran is worried about the persecution of Shia minorities in Afghanistan, but they are trying to have constructive relations with the Taliban because they need water from Afghanistan to feed the southeast of Iran, which is very dry.

Pakistan has not been able to control the Taliban, but has succeeded in establishing a regime in Kabul that is hostile to India. China would like to see stability in Afghanistan to access its natural resources, but otherwise it largely follows Pakistan’s lead. Russia is preoccupied with Ukraine, but is worried about the spread of narcotics and Islamic extremism up through central Asian states.

None of those regional powers, it should be said, is willing to recognize a Taliban government.

How secure is the Taliban government?

Cross-border trade continues, with revenues from mining, timber, coal and natural resources. The Taliban are still involved in heroin production, which they tax heavily despite having said they would suppress it.

A senior Afghan woman told me recently: ‘We feel more secure, but less certain about our future than ever before.’


They don’t want to upset the poppy farmers who helped return them to power. There is a level of security that has bought the Taliban some time. Previously, in the south there was a lot of fighting and there were daily car bombs and attacks in some cities.

Now, on the whole, mothers know they can send their kids to the water pump. A friend, a senior Afghan female in the country, told me recently: ‘We feel more secure, but less certain about our future than ever before.’ They can see that the economy is going downhill.

One scenario is a disintegration of the country along regional lines, in which, say, the people of Badakhshan decide they will no longer let the central government take all the revenue from their lapis lazuli and ruby mines. Local warlords may re-emerge whom the Taliban would find it more difficult to deal with.

As for the terrorist threat in Afghanistan, the Taliban never broke their ties to Al-Qaeda, and at one point the Americans were saying that there were more than two dozen terrorist groups in Afghanistan. I’m sure the Taliban will be able to rein in most of these, the exception being Islamic State – that is a battle of extreme ideologies. Another problem is a lot of these international terrorists have married Afghans and are now well enmeshed into local society.
 
You paint a bleak picture of Afghanistan’s future. What, if anything, gives you hope for the country?

Ordinary Afghans are resilient and entrepreneurial. They also have a strong sense of being Afghan and that their country is one of the longest-existing countries in that part of the world. But the Taliban need to make people feel they are included in that national identity.

Sadly, I think it will take war, famine, plague and disaster in order for the Taliban to unbend sufficiently to realize that they need better ethnic and gender representation in government, as well as economic expertise. I hope the Afghan diaspora will be asked to come together to forge a better future for the country.

 




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China Party Congress: Xi’s political blueprint

China Party Congress: Xi’s political blueprint The World Today rescobales.drupal 28 September 2022

In the second of her three-part series on the 20th National Congress of the Chinese Communist Party, Yu Jie outlines two key policy themes we can expect Xi to define: ‘common prosperity’ and ‘self-reliance’.

What can we expect from the Party Congress?

In mid-October five years ago, the 19th Party Congress opened with Xi Jinping delivering a political report lasting three-and-a-half hours. He will repeat the performance on October 16, the opening day of this year’s 20th Party congress.

Bland as its name may be, this political report is one of the Party Congress’s core items of business. It remains the most authoritative public account of the Chinese Communist Party’s path on all major policy fronts, containing a laundry list of policies undertaken by the outgoing Central Committee in the past five years, while putting forward guidance for future policy.

It represents the view of the current Politburo Standing Committee and that of the CCP. The 20th Congress report is a collegial effort and should not be considered Xi’s personal manifesto, nor should it be counted as another of his speeches to his comrades.

However, as general-secretary of the party for the past decade, it will most probably reflect many of the elements that Xi has influenced.

What are China’s political priorities?

No matter how complicated the geopolitics of the world becomes, Xi sticks to the conservative approach that has served his country well for past centuries: that China prioritizes the management of its own affairs.

Since the Cold War ended, two recurring themes have dominated the political report: the economy and security. For the 20th session, Xi will use the phrases ‘common prosperity’ as shorthand for the economy and ‘self-reliance’ for security.

Xi introduced the slogan ‘common prosperity’ at the start of his third term in August 2021. His aim was to close the income gap, address regional economic inequality and improve social welfare provision. Rebalancing social inequality was seen as essential to avoid the social disruption witnessed in other parts of the world.

Xi’s concept of ‘common prosperity’ was influenced by his childhood experiences living in exile in a remote village in Shanxi Province, in northwest China, during the Cultural Revolution. The ensuing upheaval was to prove a tragedy for his family and a disaster for the country.

His ambition is to define progress not in terms of producing double-digit growth but in dealing with the long-standing challenge of scarcities across different sections of society to meet ‘people’s ever-growing needs for a better life’. This direction was indicated at the 19th Party Congress by the term ‘shifting the principal contradiction’.

What state is the Chinese economy in?

Xi may have arrived at the right diagnosis but he has so far failed to find a cure that invokes ‘common prosperity’. After sweeping regulatory measures, the CCP has clamped down on its most successful private companies and spooked investors. While providing 80 per cent of China’s jobs, private enterprises are worried that the ‘common prosperity’ initiative may jeopardize their business.

Equally, Beijing’s zero-Covid policy has discouraged much-needed investment and failed to win the hearts and minds of Chinese youth, who have suffered most, both economically and socially.

The challenge facing Xi over the next five years will be to manage the financial risks in downsizing China’s property sector while coming out of a rigidly imposed Covid lockdown without reducing economic growth to such an extent that it damages the personal wealth of millions of people.

One hopes that Xi’s policies in future will be based on an innovative reading of the first-century phrase ‘seeking truth from facts’ adopted by Mao Zedong and last promoted as the political philosophy of Deng Xiaoping in the Seventies. A healthy market economy is not only essential for China’s development but as the only means of maintaining the party’s legitimacy, something vital for Xi.

Does China need more security?

China’s weakened export markets and less-friendly relations with the United States have encouraged it to become more self-reliant. Expect an emphasis on greater self-sufficiency in sectors of strategic importance to form a substantial part of this year’s political report.

In view of increased international hostility, Xi and his lieutenants have publicly recognized the need to take control of production and supply chains. These supply chains need to become ‘self-determined, self-controlled’ they have said, voicing frustration that the highest value-added elements of the Chinese tech sector remain reliant on overseas suppliers and vulnerable to geopolitical tensions.

Equally, on food and energy security, Russia’s invasion in Ukraine has exacerbated China’s already fragile food supplies as both countries are vital sources of food imports. Xi has already called for a ‘comprehensive thrift strategy’ to manage China’s food and energy needs.

Beijing is equally worried about the increase in oil and commodity prices which is driving up the cost of living. This may push parts of Chinese society out of ‘common prosperity’ and into ‘common poverty’, as it threatens to in some parts of Europe.

For the next five years, Xi needs to strike a balance between ‘common prosperity’ and ‘self-reliance’ to mitigate the storms ahead. He cannot afford to lockdown the world’s second largest economy indefinitely.

The hope is that the 20th Party congress will bring much-needed course corrections.

Read the two further articles in this series: the first provides a guide to why the Chinese Communist Party Congress matters; the third analyses the foreign policy issues likely to be discussed at the congress.  

 




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China’s high-stakes incursion in the heights of Bhutan

China’s high-stakes incursion in the heights of Bhutan The World Today mhiggins.drupal 28 September 2022

Why is Beijing establishing settlements over the Bhutanese border? To undermine India’s strategic security, say John Pollock and Damien Symon.

A confrontation is fomenting on the roof of the world in a country that rarely warrants international attention.

In the tiny Kingdom of Bhutan, China is building villages in isolated, mountainous regions, upping the pressure on the capital Thimphu to yield contested areas to Beijing. In doing so, China risks a collision with South Asia’s largest state and Bhutan’s principal security guarantor, India.


Sitting on top of fragile geopolitical fault lines in the Himalayas, China’s Central Military Commission has seemingly authorized a series of incursions into the Bhutanese regions of Doklam, Jakarlung, and Pasamlung. Beijing has also announced fresh claims in the east towards Sakteng. Taken together, these amount to 12 per cent of Bhutan’s total territory according to Nathan Ruser, an analyst at the Australian Strategic Policy Institute.

India is wary of Beijing’s increased assertiveness in the Himalayas following a large-scale incursion by the Chinese People’s Liberation Army (PLA) into Ladakh two years ago when dozens of Indian and Chinese soldiers were killed in a stand-off.

The appearance of Chinese roads, villages and a host of other infrastructure projects within largely uninhabited areas of Bhutan close to Tibet, have, for sections of India’s national security establishment, confirmed their worst fears – Beijing is altering the status quo across the Himalayas in a bid to undermine India’s strategic security through territorial alterations.

As a country of only 780,000 people, Bhutan is greatly influenced by New Delhi when it comes to its foreign affairs. In exchange, India guarantees the defence of the kingdom and trains the Royal Bhutanese Army. The appearance of Chinese villages on its territory risks Bhutan becoming a victim of the wider regional tensions.

The trauma of China-Bhutan border relations

Bhutan is no stranger to the territorial aspirations of its northern neighbour. Thousands of refugees fled into the country after China annexed Tibet, damaging longstanding cultural and religious links between the Tibetan and Bhutanese people – a trauma still being felt today.

Now, Beijing is laying claim to three areas within Bhutan, including Doklam in the west. This plateau is close to the Siliguri Corridor which connects to the ‘Seven Sister’ states in northeast India. Indeed, such is India’s concern over any Chinese presence near Doklam that in 2017 local Indian commanders sent troops into Bhutan to prevent PLA engineers building a road near the Doka La pass, resulting in a 72-day stand-off on Bhutanese soil between India and China, an experience Thimphu is unwilling to repeat.

Once again, China is looking to force the border issue unilaterally, altering the status quo and building villages and outposts on Bhutanese soil. On the available evidence, it has been doing so for at least three years.

The presence of Chinese villages in uninhabited areas of Bhutan serves a strategic purpose. They appear to be intended to pressure Bhutan into accepting an earlier version of a border deal that concedes Doklam to the Chinese.

Bhutan’s increasing concern is that China now views the Sino-Bhutanese border dispute as a way of unravelling India’s strategic position by stealth. Here we see a growing pattern of behaviour across the Himalayas. China is testing the boundaries in isolated and contested areas of India to attain local advantages that ensure New Delhi’s gaze remains fixed on the Himalayas.

The costly choice facing Bhutan

Bhutan for its part has very deliberately opted to remain silent, despite clear violations of its border deal with Beijing. Thimphu has made no public comment on any of the Chinese incursions.

The choice now facing Bhutan is a costly one. To concede Doklam would devastate relations with India, its closest partner. But to ignore China’s ambitions would be to risk further violations of its sovereign territory.

Bhutan may yet agree in principle to a land swap but then delay its implementation in the hope China limits any further advances. Thus Bhutan, India and China stand at a crossroads, with an impending confrontation that has not yet arrived and one that through Thimphu’s delicate diplomacy, Bhutan hopes never does.

China’s incursions into Bhutan

Key to map: 1 - Pangda; 2 - Dramana and Shakhatoe; 3 - Menchuma Valley. Areas of incursion are circled; the red shaded areas are disputed. The star is the capital Thimphu, and the international airport lies to the west.

1. Pangda

Aerial image of Pangda, a village of some 124 people established by China which sits 2km over the border with Bhutan. Image: Maxar (March 2022).

The most high-profile incursion is in the disputed areas in Doklam. Running adjacent to the previous Doka La stand-off site, a series of Chinese projects are visible, following the Amo Chu River that runs from the Chumbi Valley in Tibet into Bhutan.

The most well-known of these xiaokang – meaning peaceful and prosperous – border projects is Pangda, a village of 124 people that sits roughly two kilometres within Bhutan from the border. First spotted by open-source intelligence analysts in October-November 2020, Chinese state media says that 27 households were moved from the Shangdui village to Pangda in September of that year and that the village is located in Yadong County, Tibet. Pangda, however, lies on territory internationally recognized as belonging to Bhutan.

Since Pangda was first identified, two more villages and an additional excavation site have been noted through satellite photographs taken in March this year, steadily following the river further into Bhutanese territory. In recent reporting by journalist Vishnu Som, a connecting road is also visible that runs 9km into Bhutan.

Given the geopolitical sensitivities of the area vis-a-vis India, speculation points to Chinese attempts to increase pressure on the Jampheri ridge overlooking the 2017 stand-off site, which according to journalist Tenzing Lamsang, is currently occupied by a small Royal Bhutanese Army detachment. As ever in the Himalayas, small tactical alterations have strategic implications. Chinese control of the Jampheri ridge would command views towards Sikkim, increase the scope of China’s surveillance operations near the border and place India’s Eastern Theatre Command at a terrain disadvantage were it to intervene as it did at Doka La.

 

2. Dramana and Shakhatoe

Aerial image showing one of several villages recently built by China in the Dramana and Shakhatoe region of Bhutan. The Chinese military is said to be patrolling this area aggressively. Image: Maxar (2022). 

Further north of Doklam, at Dramana and Shakhatoe, more villages have been identified, with recent photographs taken in November 2021 showing a collection of structures nestled between snow-capped mountains. Varying in size, the largest village identified by journalist Devjyot Ghoshal comprises more than 84 buildings with construction having been started in December 2020 and seemingly completed by December 2021.

Little is known about the nature of these villages or their occupants other than their size and location. However, the Chinese PLA has patrolled these areas aggressively, warning away Bhutanese herders and challenging counter patrols by the Royal Bhutanese Army.

A permanent PLA presence in the area would be a significant change to the status quo. Informed speculation suggests that these may house either civilian contractors brought in from Tibet to oversee construction projects in the area, Tibetan or Chinese citizens brought across the border, or they could even be barracks for the PLA to help facilitate increased patrols in these contested areas.

3. Menchuma Valley

Aerial image of one of several Chinese-built settlements in and around Menchuma Valley in Bhutan; the area is home to holy sites important to both Bhutanese and Tibetan culture. Image: PlanetLabs (2022). 

Amid the sustained activity in the west of Bhutan, we are seeing similar levels of activity mirrored in the northern contested areas in Jakarlung, Pasumlung and the Menchuma Valley, a well-known entry point into Tibet for Bhutanese pilgrims.

In May 2021, a team of researchers led by Robert Barnett from the London School of Oriental and African Studies discovered three additional villages in these contested areas, alongside a series of infrastructure projects, sitting between 3km and 5km south of the Chinese border in Bhutan. Barnett identified what appears to be police and military posts near these villages, as well as a communications tower.

While the building efforts at Doklam are seen as having a geopolitical intent towards India, these villages and their locations are seemingly aimed to maximize China’s leverage over Bhutan. They are considered sacred in Tibetan Buddhist teachings as the birthplace of ancient Himalayan cultural heroes, with strong links to the Bhutanese royal family. Today they are the home to holy sites and temples, such as the Singye Dzong.

For China to intrude on this area, and in some cases even deny entry to parts of it, is suppression of Bhutanese history, culture and traditions. By design or by default, Beijing is managing Tibetan religion and culture beyond the borders of the Tibetan Administrative Region.

 

 

 




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Book preview: Guide to Chinese Climate Policy 2022

Book preview: Guide to Chinese Climate Policy 2022 20 October 2022 — 10:00AM TO 11:15AM Anonymous (not verified) 28 September 2022 Chatham House and Online

Join authors David Sandalow and Michal Meidan to discuss their upcoming book.

China is the world’s largest emitter of greenhouse gases and a key player in tackling the global climate crisis. Its stated climate policies, namely its high-level targets to peak emissions by 2030 and to achieve carbon neutrality by 2060, are significant.

But while national-level ministries, local governments and businesses are setting climate roadmaps, implementation is challenging at times. In the current context of the global energy market and geopolitical turmoil, China’s need to maintain energy security can seem at odds with its climate pledges.

The authors will present the book, which examines Chinese emissions, the impacts of climate change in China, as well as China’s domestic and international climate change policies and the main implementation challenges these policies face.




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China's Party Congress: a dose of foreign policy realism is needed

China's Party Congress: a dose of foreign policy realism is needed The World Today mhiggins.drupal 11 October 2022

In the final article of three on the 20th Chinese Communist Party Congress, which opens on 16 October, Yu Jie argues that Beijing must show more pragmatism about Taiwan and the West.

How important is foreign policy at the congress?  

The political reports delivered to the delegates of the week-long 20th Chinese Communist Party Congress, which happens every five years, follow a Marxist-Leninist formula. Economics and the means of production form the base, while politics and society fill in the superstructure. 

We can expect sections on the work of the Chinese Communist Party (CCP), ideological discussion, economics, domestic politics, foreign affairs, cultural reform and social developments. Usually, the report prioritizes big domestic political issues.  

The political report typically sheds some light on the status of, and relationships between, senior party members. It can also provide insights into the political fortunes of various interest groups. The report acts as a summary of the party’s achievements and its plans – expressed as the lowest common denominator of consensus between competing factions. 

The congress will address foreign affairs issues with long-lasting implications for the rest of the world

This year’s congress should be no different, and the political reshuffle that takes place is likely to signal how Beijing intends to rise to the many challenges at home and abroad. 

Given China’s growing power and its fraught relationship with the West, this year’s congress is expected to feature serious discussion on weighty foreign affairs issues affecting Beijing, and which will have long-lasting implications for the rest of the world.  

Which geopolitical issues will be priorities?  

When it comes to foreign affairs, China’s priorities rarely change. The CCP seeks to create a stable external environment to foster its domestic economic development. This conservative maxim was advocated in the 1980s by China’s then-paramount leader, Deng Xiaoping, and it will continue to guide Beijing’s relationships after this congress. 

While we don’t know the exact details of this year’s political report, we can expect discussion on relations with the US-led West, a possible shift in the relationship between Beijing and Moscow, and elaboration on China’s ties with the Global South.  

Notably, it’s likely that a separate chapter of the political report will see Taiwan treated alongside the special administrative regions of Hong Kong and Macau, signalling the party’s commitment to its claims over the contested island.  

Despite a chorus of nationalistic rhetoric surrounding the issue of Taiwan, Beijing will be careful not to stumble into an international conflict which risks causing colossal damage on all fronts. The choice of language on the so-called ‘Taiwan question’ in this political report will serve as a bellwether as to how, if at all, the party might fundamentally shift its views regarding Taiwan and deviate from the principle of ‘peaceful reunification’, the policy stated at every congress since 1979. 

How have China’s relations with the West worsened?  

President Richard Nixon’s visit to China in 1972, the first by an American president to the Communist nation, kicked off five decades of relative stability. However, as China’s global influence has grown, so have Washington’s fears.  

US-China relations, once stable and cooperative, are now volatile and competitive

The relationship has transitioned from the cooperation and relative stability that existed under President George W. Bush and President Hu Jintao in the early 2000s, into one characterized by volatility and competition under Xi Jinping, Joe Biden and Donald Trump. These tensions are almost certain to continue in Xi’s likely third term. 

Elements of China’s relationship with the West, such as cooperation over military and aviation technology, are becoming far more competitive. At the same time, trade and investment, once viewed as strong ties, have been rapidly deteriorating – as seen, for example, by several major publicly listed Chinese state-owned enterprises and large private companies withdrawing from the New York Stock Exchange.  

Will Beijing stand by the Kremlin despite Russia’s invasion of Ukraine?  

At the same time, Beijing’s close relationship with Moscow and its lack of opposition to Russia’s war in Ukraine have put China in an awkward position. The CCP has realized that cooperation with its long-standing ally and neighbour must come with substantial limits to avoid undermining its own political priorities and interests.  

Russia’s recklessness may spur Xi and the CCP’s senior leadership to minimize the economic, financial and political risks associated with the Kremlin’s pursuit of war against a country aligned with, and supported by, the West.  

Will China continue to support its regional partners?  

On its ties with the Global South, Beijing began to rethink its Belt and Road Initiative (BRI) as the US-led Indo-Pacific strategy gained geopolitical momentum. Regions of Southeast Asia and South Asia received a lot of funding and resources for BRI projects, as seen with Chinese support for the China-Pakistan Economic Corridor.  

Xi also recently introduced the Global Development and Global Security initiatives, which the political report should flesh out. 

Beijing is fully aware that it can only prosper if its regional partners prosper

Beijing is fully aware that it can only prosper if its regional partners prosper, and it can only achieve resource security and border stability if its southern and western neighbours in Myanmar and Afghanistan cease to fight over land and resources. 

Chinese foreign policy over the last five years has been a strange combination of high-octane rhetoric and patient pragmatism. To respond to this contradiction, the congress could be used as an opportunity to inject a dose of realism.  

Read the two further articles in this series: the first is a guide to why the Chinese Communist Party Congress matters; the second discusses the key domestic policy themes that Xi Jinping is expected to outline at this year’s congress.




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20th CCP National Congress: Five issues to watch

20th CCP National Congress: Five issues to watch Expert comment LJefferson 13 October 2022

Interpreters of the Chinese Communist Party’s tea leaves will be paying close attention to the issues that will shape China’s trajectory for the next five years.

Xi Jinping’s expected anointment for an unprecedented third term as general secretary of the Chinese Communist Party (CCP) is likely to generate global headlines when the party’s five-yearly National Congress begins on 16 October.

But with that outcome so widely forecast, interpreters of the CCP’s tea leaves will be paying closer attention to a range of more contested – and sometimes byzantine – issues that will shape China’s trajectory for the next five years, and reverberate around the world.

These are five key issues to watch out for during Xi’s political report, a dry but authoritative account of the CCP’s policy priorities for the next five years, and the subsequent deliberations over personnel appointments.

1. From market economy to ‘common prosperity’

As the world grapples with the economic impact of Russia’s invasion of Ukraine, the Chinese economy is entering particularly choppy waters. China is forecast to grow at a slower rate than the rest of Asia for the first time in more than 30 years, according to the World Bank, as the impact of Xi’s COVID zero policies compounds a growing list of structural and cyclical challenges.

Xi is under pressure to offer some new prescriptions for the world’s second biggest economy, and he is likely to signal further shifts away from the market economics that propelled Chinese growth for decades toward his vision of ‘common prosperity’.

China is forecast to grow at a slower rate than the rest of Asia for the first time in more than 30 years.

His ambition is to redefine progress, not in terms of producing double-digit growth, but in tackling long-standing challenges such as demographic decline, social inequality and high property prices – thereby meeting ‘people’s ever-growing needs for a better life’.

China’s leader may have arrived at the right diagnosis, but he has so far failed to find measures that deliver common prosperity. He will use the Party Congress to redesign some policy measures, likely putting a stronger focus on the development of rural areas to promote economic dynamism and generate employment opportunities.

2. COVID zero to endure?

While most of the world has opened up and learned to live with COVID-19, China is still pursuing a COVID zero policy that requires frequent lockdowns, stringent movement controls and closed borders. This approach has intensified economic pressures, exacerbated high youth unemployment, and is testing the patience of China’s upwardly mobile middle classes.

Those not employed by the state have been particularly hard hit and it is difficult to see how China’s economy can start to crank up again until Beijing reduces internal restrictions and reconnects with the world.

COVID zero has intensified economic pressures, exacerbated high youth unemployment, and is testing the patience of China’s upwardly mobile middle classes.

Xi has championed the COVID zero policy, which Beijing continues to insist is vital to protect vulnerable people and support economic and social stability. So, observers will be playing close attention to his political report for any signs of a possible softening or indications of alternative future pathways for managing the pandemic. But a wholesale shift does not appear to be on the cards.

3. Xi Jinping’s team

Sinologists’ enthusiasm for predicting leadership changes in the CCP is not matched by their ability to do so. The party’s roots as a secret organization ensure that it keeps a tight lid on information about top leaders.

Observers will be closely following appointments to the seven-member Politburo Standing Committee, the apex of power for the CCP and China’s supreme decision-making body. These choices will shape China’s future policy trajectory and give some signals about the extent of Xi’s concentration of power and his future plans.

The party’s roots as a secret organization ensure that it keeps a tight lid on information about top leaders.

Names to watch for possible promotion include Xi allies such as He Lifeng, currently head of the National Development Reform Commission, a key economic planning entity, and Zhang Qingwei, currently the party secretary of Hunan, an important and populous province.

As Vice Premier Sun Chunlan, the only woman on the Politburo, reaches the retirement age, there is also likely to be a slot open for her replacement, with Shan Yiqin, the party secretary of Guizhou, one potential option.

Tracking the fate of key Xi allies will also indicate how far he has managed to overturn the collective leadership system he inherited in 2012 and how comprehensively the CCP endorses this more centralized approach to governing China.

4. Taiwan

After the escalating tensions of the last few months, analysts will be looking for any possible change in tone when Xi speaks about Taiwan, a self-governing island that China claims as a renegade province. During the past five years, Xi has approached the outside world with a mix of high-octane rhetoric with pragmatism and patience.




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Why a more inward-looking China is bad news for the world economy

Why a more inward-looking China is bad news for the world economy Expert comment LToremark 16 October 2022

The increased role of geopolitics and ideology in Beijing’s economic decision-making is bad news not just for China but for the world.

We should adhere to self-reliance, put the development of the country and nation on the basis of our own strength, and firmly seize the initiative in development. To build a great modern socialist country in an all-round way and achieve the second Centenary Goal, we must take the road of independent innovation.

President Xi Jinping, August 2022

This quote by President Xi clearly outlines the inward tilt of Chinese economic policymaking that is now becoming increasingly obvious to the rest of the world. But it actually has deep roots. Ever since the 2008 global financial crisis, when the West’s reliability as a trading partner was thrown into question, self-reliance has become a more decisive organizing principle for Chinese officials.

As a result, the export-dependent growth model on which China built its economic rise in recent decades has been fraying. Exports as a share of China’s GDP peaked at 35 per cent in 2007 but had fallen to around 20 per cent by last year, a level not seen since before China’s accession to the WTO in 2001. This shows that net exports no longer make any meaningful contribution to Chinese GDP growth.

Russia’s invasion of Ukraine has provided another geopolitical impetus to China’s pursuit of self-reliance.

Although China’s inward tilt may have started out as a response to purely economic phenomena – the post-crisis global recession, belt-tightening in the West, the eurozone crisis, and a general softening of global trade growth in the post-crisis years – geopolitical considerations are now dominant in shaping this shift toward self-reliance.

The role of geopolitics in pushing China towards a more inward-looking development path became clear in China’s response to the aggressive tariffs and export controls introduced by the Trump administration in the US. Because of these new constraints on China’s access to international markets and technology, Beijing sought to limit its dependence on the rest of the world.   

The most obvious result of this was the introduction of the ‘dual circulation’ strategy in May 2020, which sets out a rebalancing of China’s economy away from a reliance on external demand as a stimulus to growth (‘international circulation’) towards increased self-dependence (‘domestic circulation’). 

Russia’s invasion of Ukraine has provided another geopolitical impetus to China’s pursuit of self-reliance. Since it is not far-fetched to think that China, like Russia, might one day also face coordinated sanctions, Chinese authorities must be thinking hard about how to respond to such a risk. 

Within China itself, a new emphasis on the role of the state is increasingly apparent – and seemingly rooted in ideology. 

The only credible strategy that China can adopt is to reduce its economic dependence on the West by creating, in effect, a kind of economic fortress, as its dependence on imported technology, food, and fossil fuels in particular, has created a substantial strategic vulnerability.

Over the next few years, Chinese policymakers will likely attempt to build up the country’s ability to supply its own semi-conductors, food, and green energy sources.

This new approach to economic policymaking isn’t just about China’s relationship with the rest of the world. Within China itself, a new emphasis on the role of the state is increasingly apparent – and seemingly rooted in ideology. 

The previous National Congress of the Chinese Communist Party (CCP), in October 2017, made a push for ‘stronger, better, and bigger’ state-owned enterprises (SOEs) and the past five years have indeed seen a measurable rise in the role that SOEs play in the Chinese economy. These firms now account for more fixed investment in the economy than private firms, for the first time since 2005.




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Xi Jinping shows the world he is taking a tougher line

Xi Jinping shows the world he is taking a tougher line Expert comment NCapeling 16 October 2022

Xi opens the 20th National Congress of the Chinese Communist Party with a political report which demonstrates both change and continuity in the approach of his leadership.

The 20th Party Congress report is significantly shorter than the 19th, which is a clear indication of Xi’s success in centralizing power. The report acts as a summary of the party’s achievements and its plans – expressed as the lowest common denominator of consensus between competing factions. A shorter political report would seem to represent fewer factions now seeking consensus.

In the 20th Party Congress report, the language on Taiwan has been revised, reflecting the changes in tone and the policies of the CCP senior leadership. In addition to the conventional ‘peaceful reunification’ term, there is also an addition of more hawkish language on Taiwan to ‘not exclude the use of force as a last resort’.

Xi also suggested that ‘resolving Taiwan Question should be in hands of the Chinese’, sending a further warning to the US and other Western allies which are perceived as interfering in Taiwan affairs.

In his remarks, Xi suggested the ‘zero-COVID’ strategy has worked for China although he gave no clear timeline on when the policy will end. He also proposed building a healthcare system able to cope with future pandemics. This implies that China is still in short supply of sufficient healthcare resources to cope with a disease like COVID.

Economic policy reveals anxiety

On economic policy, much of the emphasis is given to the extent to which security and economic growth should go hand in hand, which illustrates Beijing’s deep anxieties on supply chains and the high-tech sector. These supply chains need to become more ‘self-determined, self-controlled’, voicing frustration that the highest value-added elements of the Chinese tech sector remain reliant on overseas suppliers and vulnerable to geopolitical tensions.

Much of the emphasis is given to the extent to which security and economic growth should go hand in hand, which illustrates Beijing’s deep anxieties on supply chains and the high-tech sector

Also, he expected the Common Prosperity Initiative will further adjust uneven income distribution to increase the amount of middle-income population. He gave little favours for financial services and fin-tech companies but insisted that China should remain as a manufacturing-led economy with qualitative growth. That implies Beijing will tolerate much slower growth so long as the income gap between the rich and poor is closing.

On foreign affairs, Xi has completely abandoned the ‘new types of great power relations’ – instead he has stressed that China should further develop its ties with the Global South through the Global Development Initiative and the Global Security Initiative.




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Xi Jinping prepares the Communist party for new reality

Xi Jinping prepares the Communist party for new reality Expert comment NCapeling 20 October 2022

Political report reflects a worsened economic and diplomatic position as Xi knows his unprecedented third term as leader will be judged on results.

In stark contrast to the aura of triumphant glory that greeted Xi Jinping at the last National Congress of the Chinese Communist Party in 2017, this week’s convocation opened with an air of sobriety.

Amid a domestic economic downturn and a return to enmity with Western liberal democracies, Xi offered his own recipe for party legitimacy and the country’s economic survival in the lengthy executive summary of his political report to the CCP congress. The prime keyword was security, with some 73 mentions, underscored with a message of self-reliance.

The periodic report acts as a summary of the party’s achievements and of its future plans, with both expressed as the lowest common denominator of consensus between competing voices in the CCP. It thus typically sheds some light on relationships among senior party members and insights into the political fortunes of important intraparty groups.

Beijing is indeed turning to domestic consumption and homegrown technological prowess as the means to provide the rising wealth that the Chinese people have come to expect

Most portions of the new report combined Xi’s personal preferences with concessions to the reality of what is necessary for China’s economic survival. Both ends point to an urgent prioritization of economic and political self-reliance for Xi’s third term as party general secretary.

Holistic concept of security

On the domestic front, much emphasis was given to enhancing national security and promoting equitable growth.

Since even before COVID-19, Xi has advocated a holistic conceptualization of security that includes food, the internet, energy and manpower. Reflecting Beijing’s deep anxieties about high-tech development and its frustrations with dependence on overseas suppliers vulnerable to the vagaries of geopolitical tensions, the political report noted the need for China’s supply chains to become more “self-determined and self-controlled.”

Xi, though, went further to stress the importance of improving scientific education and grooming and attracting the necessary talent to accelerate China’s quest to achieve breakthroughs in semiconductor production and overcome development choke points created by Western technological monopolies.

As China has traditionally relied on connectivity with the rest of the world to support innovation and attract talent, a turn toward autarky is not a viable option, given Xi’s technological priorities. Yet the renewed mention of his ‘dual circulation’ strategy in the report signals that Beijing is indeed turning to domestic consumption and homegrown technological prowess as the means to provide the rising wealth that the Chinese people have come to expect from the Communist Party.

Worsening Sino-US relations and tightening access to overseas markets for Chinese companies have prompted party leaders not only to reconsider the country’s sources of economic growth but have also forced them to reconfigure their approach to foreign affairs.

Judging by his report summary, Xi has completely abandoned the ‘new type of great power relations’ concept used repeatedly in the last two editions of his congressional update to refer to his preferred approach to relations with the US-led West.

The omission shows that Beijing has concluded that its fraught relationship with advanced developed nations is here to stay, with little prospect of improvement soon. To this end, China needs to prepare for the worst of decoupling and become more self-reliant in terms of markets and technologies.

With the central government grappling with the country’s domestic economic woes, its spending spree on development assistance has had to come to an end

In place of the discarded concept, Xi stressed that China should further develop its ties with the global South through the Global Development Initiative and the Global Security Initiative he announced earlier this year. These efforts aim to reshape the global governance agenda in multilateral forums and to project Beijing’s influence on the developing world.

Meanwhile, the party’s latest official rhetoric about the Belt and Road Initiative shows it is no longer a one-size-fits-all slogan but on its way to becoming a genuine tool of trade and investment promotion with China’s near neighbors but with provincial governments taking the lead rather than Beijing.

With the central government grappling with the country’s domestic economic woes, its spending spree on development assistance has had to come to an end. The new political report clearly signals this change.

A modern socialist society is still the aim

The current economic downturn and dangerous geopolitical tensions have not dented the CCP’s ambitions to build a modern socialist society by 2035 and thus join the world’s club of upper middle-income countries, but this is easier said than done.