Category: East Asia & Pacific

  • Elephant and Dragon

    Elephant and Dragon

    indian elephant chinese dragon

    BALAJI CHANDRAMOHAN

    It is understandable and predictable that Asia’s two giants – India and China – should be gearing up for a showdown somewhat similar to the East-West showdown of the Cold War. Given both countries’ growing economies, and given the waning influence of the West in global affairs, India and China are increasing their foothold in distant corners of the world through trade, investment, bilateral treaties and security relationships.

    In this classic ‘great power’ rivalry, China wishes to win by keeping India in low-level equilibrium – for instance, by denying permission to an Indian lieutenant-general posted in the state of Jammu and Kashmir to visit China. The officer in question had intended to travel to China in August of this year for a high-level defence exchange between the two countries.

    What is more, if media reports are to be believed, then policy-makers in New Delhi are losing sleep over the fact that 7,000 to 11,000 Chinese troops are present in Gilgit in Pakistan-occupied Kashmir – something that the Indian government is trying to verify, although Pakistan’s envoy to Beijing has denied the reports. The reports say that People’s Liberation Army soldiers entering Gilgit-Baltistan are expected to work on the railroad and on extending the highly strategic Karakoram Highway – a clear sign that China wishes to extend its influence in the oil-rich gulf region. There are also reports about a six-month visa to visit China having been issued Paresh Barua, Commander-in-Chief of the United Liberation Front of Asom (ULFA), a militant organization based in Northeast India.

    Reacting to China’s aggressive posture, the Government of India recently held a meeting of the Cabinet Committee of Security, chaired by Prime Minister Manmohan Singh. New Delhi’s envoy to Beijing, S. Jaishankar, briefed the Committee on the current state of Sino-Indian relations.

    Following the Bush presidency, given the general reluctance of the Obama administration to ‘contain’ China (let alone to engage on a sustained basis in Asia at large), China has decided to have a ‘free go’ throughout the world. This ‘free go’ has necessitated the establishment of a firm Chinese foothold in the Asia-Pacific region, from which it can broaden its sphere of strategic influence even to Africa, Latin America and Europe. India acts as a distinct challenger in this respect. With a population of more than one billion people, a growing economy and supple latent power, India is a clear leader in the affairs of South Asia. It has also increased its influence in Southeast Asia through its ‘Look East’ policy. In fact, East Asian countries like South Korea and Japan are more inclined to cooperate, and look for active strategic partnership, with India rather than with China. India has also started to spread its wings through active diplomatic ventures in Africa through the Indo-African forum, and in the South Pacific Islands through the Pacific Islands Forum. Furthermore, India has initiated more active dialogue with its diasporic populations through the annual Pravasi Bharatiya Divas festival that fosters better relations between expatriate Indians and Indians living in India. Indeed, the Indo-American civil nuclear deal that was sealed during the Bush administration would not have happened without the active lobbying of Indo-Americans. This has pushed India to initiate a ‘Forward Policy’ in its diplomacy.

    All of this has irritated Beijing in that it has understood that, to clip the wings of the spreading India, China must first ‘box-in’ India in South Asia. That is precisely the strategy of Beijing in aiding Pakistan to follow an aggressive posture in its diplomatic relations with India. With India being distracted in Pakistan, and with the US distracted in Afghanistan and Iraq, China can expand quickly in Asia; that is, it can clearly establish many more ‘strategic condominiums’ in the world. In this sense, China profits from its authoritarian and more monolithic decision-making processes and culture in respect of international relations – as compared with the more reactive processes of major democratic states like India and the US. India, for its part, also suffers from the general dearth of strategic culture and acumen within its political class – a weakness compounded by the absence of emphasis on foreign policy in day-to-day media discourse in India. Though Manmohan Singh is not a classical professional politician, and while he could be considered of a statesman of the highest order (a later article with GB will deal with his declining popularity in India, and the reasons thereof), the general Indian policy inclination to look inward as a matter of dominant priority has manifestly prevented him from engaging with the international more actively.

    Take the case of Iran. The US is trying to engage with Iran through China, as India, the traditional ally of Iran, is left in the cold and dark. The abandonment of the foreign policy front by the political class in India has, as a rule, meant that major chunks of strategic decision-making on foreign policy have fallen to India’s army men. In this respect, India has decided to play to its strengths – understood as it is that India and China are both continental and naval powers. To counter China’s much-touted ‘Strings of Pearl’ strategy, India has decided to pursue active ‘naval diplomacy.’ China’s ‘Strings of Pearl’ strategy includes building deep-sea naval positions on the southern coast of Sri Lanka in the once sleepy fishing town of Hambantota. Moreover, China has helped Pakistan to build a deep-sea port in the town of Gadara in Baluchistan. It has also started to court the littoral states in the Indian Ocean – the Maldives, Mauritius and Seychelles – and invested funds in these micro-states to boost economic prospects. In return, China has sought to allow its bases to continue to be stationed in these littoral states. As a part of its counter-strategy, India is sending its naval officers on a routine trip to these countries. There are regular exchanges between India and these states at the naval officer level. India is also establishing for the Maldives a network of radars that will help the island nation offset for the plain fact that it lacks a navy. (Traditionally, all great powers that aspired to control the Indian Ocean – Portugal, the Netherlands, Great Britain, the US and the Soviet Union – have required a base in the Maldives. The southernmost island of the Maldives, the Gan Island in the Seenu Atoll, served as a base for the British Royal Navy during WW2.)

    The Indo-China great power rivalry is the story of the first part of the 21st century – much like the rivalry between Great Britain and Germany was the dominant strategic dyad in the late 19th and early 20th centuries. This rivalry was classically described by John J. Mearsheimer in his book, The Tragedy of Great Power Politics. Wrote Mearsheimer: “Great powers behave aggressively not because they want to or because they possess some inner drive to dominate, but because they have to seek more power if they want to maximize their odds of survival.” Raw realism has been the forté of China’s conduct in world affairs since 1949 when the People’s Republic of China was established. For its part, India’s foreign policy has always flirted with moralism-cum-idealism. However, at the start of this new century, India had understood the importance of Realpolitik. Indian politicians are deft in conducting domestic politics – particularly in the area of alliance-building. They will need to show similar genius in world affairs if they are to counter China’s Dragon.

    Balaji Chandramohan is the Asia-Pacific correspondent of World News Forecast and Editor, Asia, with World Security Network. He is based in New Delhi and Wellington, New Zealand.

    , October 1, 2010

  • Spy fears as Chinese firm eyes NBN deal

    Spy fears as Chinese firm eyes NBN deal

    Maris Beck

    SECURITY experts are alarmed that a company with links to the Chinese military is bidding to supply equipment to the national broadband network, warning that the equipment could be used to spy or launch cyber attacks on Australian governments and businesses.

    The United States’ National Security Agency intervened to block Huawei Technologies’ bids to supply equipment to AT&T last year, threatening to withdraw government business if Huawei was chosen, The Washington Post reported.
    The company also has faced opposition from Indian and British intelligence agencies and Australian security experts are voicing similar concerns as Huawei seeks a slice of the $43 billion broadband roll-out.
    As the rate of cyber attacks on Australian interests intensifies, an intelligence expert at the Australian National University’s Strategic and Defence Studies Centre, Desmond Ball, said he didn’t want to sound alarmist ”but this is the highest order risk that I would see with regard to network vulnerability”.
    Bids by Huawei ”would have to be subject to the closest scrutiny but in the end it would be the government’s responsibility to reject such an involvement”.
    He said the cyber security debate focused on malicious software but more attention should be paid to hardware, which could carry digital trapdoors. Professor Ball said even the most secure cable systems were vulnerable.
    Over the next decade, he said, the US-China relationship would become the most likely source of major international conflict and Australia was a key ally of the US.
    Retired air commodore Gary Waters, a former senior official in the Defence Department who now works for consultancy firm Jacobs Australia, said the government appeared not to be taking cyber security seriously enough. ”The threat is increasing and I think this is one of those threats,” he said, adding that an independent private-sector audit would be required of any foreign company ”where alarm bells could sound on cyber security”.
    Alan Dupont, director of the Centre for International Security Studies at the University of Sydney, called for a robust discussion of the NBN’s security risks, saying: ”This is the critical piece of infrastructure that is going to go down over the next 30 or 40 years … there needs to be a broader discussion of the national security implications.”
    The executive director of national security policy at Verizon in Washington, DC, Marcus Sachs, said malicious software was easy to hide in hardware and any risk assessment should focus on how much a company could be trusted.
    Huawei lost a bid to supply the NBN’s ethernet aggregation equipment and the gigabit passive optical network in June. The contract went to Alcatel-Lucent, a French company.
    Huawei, the world’s second-largest telecommunications network provider, is believed to be preparing bids to supply almost all the equipment the NBN needs. Former Victorian minister Theo Theophanous is lobbying Canberra on Huawei’s behalf.
    Huawei emphasises that it is privately owned and has released details that show its employees own its shares. But links with the military are persistently reported. According to The New York Times, Huawei’s founder and chief executive, Ren Zhengfei, was an officer in the People’s Liberation Army. China analysts say loan credits from China Construction Bank, which were granted to small companies that wanted to buy Huawei equipment, were not necessarily repaid.
    Jeremy Mitchell, public affairs director for Huawei Australia, denied the company was linked to the Chinese government.
    He said Huawei guaranteed that its equipment was safe. Despite intelligence resistance, Huawei has supplied equipment to British Telecom. He said Optus and Telstra already used Huawei’s equipment and about 50 per cent of Australians relied on it. A spokeswoman for Communications Minister Senator Stephen Conroy said the government would ensure that ”national security and resilience issues are addressed in the design and operation of the NBN”.

    http://www.theage.com.au/technology/technology-news/spy-fears-as-chinese-firm-eyes-nbn-deal-20101016-16odq.html, October 17, 2010

  • Turkey Seeks Closer Economic and Strategic Ties with China

    Turkey Seeks Closer Economic and Strategic Ties with China

    Turkey Seeks Closer Economic and Strategic Ties with China

    Publication: Eurasia Daily Monitor Volume: 7 Issue: 186

    October 15, 2010

    By: Saban Kardas

    Chinese Prime Minister Wen Jiabo’s official visit to Turkey on October 7-8, marked a new phase in Turkish-Chinese relations. During the joint press briefing with Wen’s Turkish counterpart Recep Tayyip Erdogan, both leaders emphasized the importance they place on each other in their external relations and called their flourishing ties a “strategic partnership.” The parties signed eight agreements to develop further cooperation in various areas, including trade, transportation and combating terrorism (Anadolu Ajansi, October 9).

    Erdogan preferred to highlight the agreement to switch from dollars to their own currencies in bilateral trade. Turkey also signed a similar agreement with Russia and Iran, its other major trading partners. Through such bilateral agreements, Turkey appears determined to underscore its willingness to pursue independent policies in the global economic and financial order, which has been structured around US primacy. As such, Ankara seeks to readjust to a post-American-led world order, as the existing global order is currently in flux. On many occasions, Turkish leaders have emphasized that the gravity of the global economy has been shifting towards Asia, and that Turkey, which had been traditionally integrated into the Western world, now needs to readjust its economic and political priorities.

    It was therefore no surprise that Erdogan described the decision to use mutual currencies as a step to cement the strategic partnership between China, the economic giant which is likely to dominate the world economy in the years to come, and Turkey, an emerging economy which currently ranks 17th. China and Turkey have been the two major economies recovering rapidly from the global financial crisis, which may precipitate greater coordination between both powers in the context of the G-20 summit and other international platforms.

    However, there remains a major trade imbalance in China’s favor, which Turkey must quickly address. While Turkey’s imports from China were around $12.7 billion, Turkey’s exports amounted to only $1.6 billion in 2009. Ankara’s strategy is to redress this imbalance through the promotion of Chinese investments in Turkey, increasing tourism from China, and gaining greater exposure for Turkish products in China. Through more intensive cultural exchanges within the next three years, Turkey hopes to accomplish the latter objectives (Today’s Zaman, October 9). However, given China’s track record in achieving a positive trade balance with its partners and its low production costs, it remains to be seen how far Turkey can penetrate Chinese markets.

    Erdogan also referred to the prospects of joint projects in energy and nuclear power as yet another aspect of bilateral economic cooperation. Since Ankara signed an agreement with Moscow to construct the country’s first nuclear power plant, preparations have been underway for the construction of additional plants. While Turkey has been in talks with a South Korean company regarding the second plant (EDM, March 24), others, including Japanese companies, have recently approached Ankara on the same issue, raising expectations of growing competition in this sector. Given China’s recent drive to build numerous nuclear reactors, including some of the world’s most advanced, its experience in this field might make it a new entrant into the Turkish energy sector, though there is currently no concrete offer on the table. China has already won various large contracts to build major infrastructure projects, including modern railways in Turkey.

    History also plays a role in these flourishing ties, as references to the idea of reviving the historic Silk Road abound. Earlier, Iran also expressed interest in a similar idea, in the context of the Economic Cooperation Organization (www.irna.com, September 24). The Turkish side has worked on various projects to improve the transportation infrastructure in order that goods could flow easily between China and Turkey as well as through Central Asia (www.trt.net.tr, October 9). Such projects, in Ankara’s view, will also serve as the best remedy to bring stability to volatile Central Asia.

    However, historical factors also emerge as a source of friction in Sino-Turkish relations, as was demonstrated clearly during Wen’s visit. Following Turkish President Abdullah Gul’s historic visit to China in late June 2009, violent clashes in the Xinjiang Uighur Autonomous Region left many Turkic Muslim Uighurs dead in July 2009. Turkish leaders, which had come under pressure for ignoring the plight of Uighurs, moved to criticize Chinese policy in Xinjiang. Erdogan went as far as claiming that the killings amounted to “nearly genocide” (EDM, July 15, 2009). However, in the subsequent period, Sino-Turkish relations rapidly normalized, despite the efforts of the Uighur diaspora in Turkey to pressurize the government (EDM, August 19, 2009). Later, Turkey and China also started discussing cooperation in combating terrorism (Terrorism Monitor, October 1, 2009).

    Since China has represented the Uighur resistance as subversive terrorist activities, possibly with ties to the global al-Qaeda network, such cooperation with Turkey has been deemed valuable. In this context, Wen emphasized during the joint press briefing that they discussed boosting bilateral cooperation in fighting terrorism and extremism. Such talks, ironically, took place while Uighur activists organized demonstrations outside to protest against Wen’s visit and Ankara’s policy towards China (Hurriyet, October 9).

    Ankara’s position on Uighur demands, which might appear as backpedaling, mirrors Turkey’s earlier experience with the North Caucasus diaspora. In order to preserve the flourishing Turkish-Russian bilateral relationship, Ankara adopted a cooperative approach and restrained the activities of the Caucasian diaspora during the second Chechen war, a policy which continues to date (EDM, April 14). In the otherwise strong relationship with China, Uighur pleas for greater recognition are likely to remain a sore point. Yet, the Turkish government seems determined not to let the Xinjiang issue spoil growing economic and political ties with China.

    An apparent indication of this determination came earlier this month, when a Turkish daily reported that in late September and early October, the Turkish and Chinese air forces held joint drills in Turkey’s Central Anatolian province of Konya (Taraf, October 2). Although Turkey refrained from using its more advanced F-16’s and flew only F-4’s upon US expression of concern over protecting sensitive technology, its decision to deepen military ties with China to such a level, the first such exercise China has conducted with a NATO member, reveals much about Turkey’s new strategic priorities.

    https://jamestown.org/program/turkey-seeks-closer-economic-and-strategic-ties-with-china/

  • China and Turkey eye trade boost

    China and Turkey eye trade boost

    china erdogan

    Turkey and China intend to triple bilateral trade to $50bn within five years, the countries’ leaders have said after meetings aimed at strengthening political and business ties.

    At a joint news conference held in the Turkish capital Ankara, Tayyib Erdogan, the prime minister, said: “We set ourselves a timetable. We agreed to increase our trade volume to $50bn in 2015 and to $100bn in 2020.”

    Erdogan’s Chinese counterpart, Wen Jiabao, hailed what he described as a new “strategic partnership”, saying he recognised Turkey’s “power and influence in the international community and its region”.

    Both countries – the fastest growing economies in the world – sealed agreements to co-operate in energy, transport and infrastructure.

    Erdogan said the two countries have also agreed to carry out their trade in their national currencies.

    ‘Important milestone’

    Wen, the first Chinese premier to visit Turkey in eight years, said he wanted to “turn over a new leaf” in ties with Turkey. He also held talks with Abdullah Gul, the Turkish president, and business leaders before returning home on Saturday.

    Turkey was the last stop on Wen’s European tour, which took him to Greece, Belgium and Brussels.

    He described his two-day visit as an “important milestone in relations”.

    Turkey’s ties with China have been strained at times, notably over Beijing’s approach to unrest in Xinjiang, home to China’s Muslim Turkish minority Uighurs.

    The two leaders did not, however, address one of the few areas of tension in bilateral ties.

    Hundreds of Uighur Turks held demonstrations during Wen’s visit, denouncing Beijing’s handling of the unrest which killed 184 people in Xinjiang in 2009.

    Turkey accepts China’s sovereignty over Xinjiang, but last year heavily criticised the deadly violence in the region, which it described as “atrocities”.

    Wen’s tour of Europe was also overshadowed by a dispute with the European Union and the US over the level of the yuan.

    In the Greek capital Athens, he pledged investment and support to debt-stricken Greece and announced the creation of a $5bn fund to help finance the purchase of Chinese ships by Greek shipping companies.

    In Brussels, Wen fended off European pressure to raise the value of the yuan before sealing business deals worth $3.15bn in Rome.

    Trade ‘imbalance’

    The trade volume between Turkey and China stood at $14.2bn in 2009 – $12.6bn of which consisted of Chinese exports.

    Wen said his country was not opposed to looking into ways to redress the imbalance. “The Chinese side will carry out a study in order to sustain our trade without giving a huge deficit,” he said.

    One of the agreements would open the way for the joint construction of 4,500km of railway in Turkey, Erdogan said, adding that efforts would now focus on finding the necessary finance for the project.

    Chinese companies are already involved in the construction of railroads for two high-speed train links, he added.

    Turkey and China are also involved in projects to build oil pipelines from Iran.

    Joint military exercise

    Turkish newspapers reported last week that Chinese warplanes took part in a military training exercise at an airbase in central Turkey, in what appeared to be the first such drill involving Beijing and a Nato member country.

    The Turkish army has not confirmed the exercise.

    Turkish press reports also said the Chinese-Turkish manoeuvres took place on September 20 through October 4 at the Konya air base in Turkey’s central Anatolia region – before Wen’s visit.

    “To the best of our knowledge, US-made F-16s were not involved in the exercise,” Lieutenant Colonel Tamara Parker, a defence department spokeswoman, said on Friday.

    Another Pentagon official, who asked not to be identified, said indications were that the Turkish air force flew F-4 Phantom fighters, used extensively by the US during the Vietnam war, while China flew Russian-built SU-27s.

    China, according to reports, has also developed a surface-to-surface rocket-launching system together with Turkey.

  • China, Turkey Deepen Ties During Rare Visit

    China, Turkey Deepen Ties During Rare Visit

    Chinese Premier Wen Jiabao visited Turkey last week as part of his tour of Europe. Both countries – the fastest growing economies in the world – sealed agreements to cooperate in energy, transport and infrastructure.

    Turkish Prime Minister Recep Tayyip Erdogan declared the visit an important step in the growing relationship between China and Turkey.

    “We said let’s raise our trade volume to $50 billion by 2015. And as the second phase, by 2020 let’s aim to reach a volume of $100 billion. We have agreed upon this with my counterpart,” said Erdogan.

    China Premier Wen Jiabao, described the transaction as a new “strategic partnership”, saying he recognized Turkey’s “power and influence in the international community and its region”.

    Both countries – the fastest growing economies in the world – sealed agreements to cooperate in energy, transport and infrastructure.

    Turkish Prime Minister Recep Tayyip Erdogan (r) and his Chinese counterpart Wen Jiabao after a news conference in Ankara, 08 Oct 2010 Photo: AP
    Turkish Prime Minister Recep Tayyip Erdogan (r) and his Chinese counterpart Wen Jiabao after a news conference in Ankara, 08 Oct 2010 Photo: AP

    One of the agreements would open the way for the joint construction of 4,500-kilometer railway in Turkey. Chinese companies are already involved in the construction of railroads for two high-speed train links. Turkey and China are also involved in projects to build oil pipelines from Iran.

    Mr. Erdogan said the two countries have also agreed to carry out their trade in their national currencies.

    Let’s continue our business transactions based on yuan and Turkish lira,” he said. “This would be the most important step after the similar steps we took with Russia and Iran.”

    But analysts say trade may not be the only motive behind the Chinese premier’s visit.

    Turkey’s ties with China have been strained at times, mostly over Beijing’s approach to unrest in Xinjiang, home to China’s Muslim Turkish minority Uighurs. Some analysts says China believes Turkey can play a role in helping to resolve tensions. Last year China was hit by major Uighur unrest which was violently put down by Chinese authorities.

    That strained Turkish-Chinese relations with an angry diplomatic exchange. The Turkish prime minister accused China of committing atrocities, Beijing retorted telling Turkey to back down.

    Political columnist Murat Yetkin says while trade is the backbone behind deepening relations, it seems to have moved into the diplomatic realm.

    “Right before this visit, there was bilateral military exercise in Turkey where Chinese jets were involved in flying over Pakistani and Iranian airspace,” said Yetkin. “And, this was the first time ever, a Chinese air force had a military exercise with a NATO country. So Turkish-Chinese relations are getting more and more upfront.”

    Businessman Omer Bollat, the former head of Musiad – a Turkish business confederation – says relations with China is part of a wider policy of reducing its dependancy on Europe.

    “The Turkish economy with present government has been opening up to Eurasia markets, Russia Caucasus, Balkans, Middle Eastern gulf countries, African countries in particular North African countries,” said Bollat. “And the Turkish economy is diversifying its products, its services, and its markets not to be too much dependent on the European Union market.”

    Turkish foreign policy adviser Gokhan Cetinsayar says while in the past previous Turkish leaders tried to develop ties with central Asia and China, those efforts failed due to a weak economy and unstable government. But, he says Turkey’s ruling AKP believes with the country’s strong economy and government such goals are obtainable.

    “AKP’s foreign policy doctrine, Turkey with its strategic depth, geographic depth, Turkey with its economic and military power, should certainly play a leading role in the region including the Middle East,” said Cetinsayar. “Turkey should become a global power in the long run.”

    The Turkey stop was part of the final leg of the Chinese premier’s four-nation European trip that started October 2, which also took him to Greece, Belgium, Germany and Italy.

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  • Japan interested in constructing a nuclear power plant in Turkey

    Japan interested in constructing a nuclear power plant in Turkey

    Japanese delegation submitted a letter from the Japanese economy, trade and industry minister highlighting possible cooperation between Japan and Turkey in Turkey’s energy sector, said Taner Yildiz, the minister of energy and natural resources, according to Today’s Zaman.

    japan nuclear plant

    “We see this offer from Japan as an important bid in terms of our efforts to construct nuclear power plants in Turkey. However, we told them that we cannot give them a definite answer before concluding our negotiations with South Korea,” says Yildiz.

    Turkey is currently negotiation a deal with South Korea in building a power plant in Sinop province. The country also recently singed a contract with Russia about building another plant in Mersin province, along the Mediterranean Sea. Turkey has no plans to build a third plant at the moment, says Yildiz.

    Yildiz told that US has not made any bids when it comes to the construction of nuclear power plants in Turkey.

    Nobuaki Tanaka who is the Japanese Ambassador to Turkey made a brief speech yesterday in Ankara, where he highlighted Japan’s growing interest in Turkey’s energy field, especially when it comes to nuclear and renewable energy. bne.

    The Balkans