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Posts Tagged ‘China’

Considering the Implausible.

datePosted on 18:24, July 2nd, 2015 by Pablo

From time to time I am invited to give public presentations on subjects within my areas of interest. Depending on the topic I sometimes offer ideas for the audience to consider. At a think tank gathering last year I offered the suggestion that parliament should consider the proposition that New Zealand be the first country to publicly and formally renounce the use of lethal drones at home and abroad. I pointed out that although security conservatives and military commanders would oppose the move because it limited NZDF (and perhaps in the future NZ Police) tactical options, it was worth debating on moral and legal as well as practical grounds given New Zealand’s unique political culture and international standing. Since 90 percent of what military drones do is non-lethal and the NZDF does not have a lethal drone capability as of yet, it seems worth a try.

That proposition went nowhere. Some left leaning commentators supported the motion (most notably No Right Turn and one of the authors at The Standard). But no a single political party, to include the Greens, Mana and the Internet Party, adopted it as a policy proposition and it was never brought up in parliament.

This year I was at another event that featured academicians, students, policy practitioners, journalists and diplomats (foreign and Kiwi) discussing New Zealand’s past, present and future foreign policy. I was matched with a representative of the New Zealand intelligence community and a security academic on a panel that addressed intelligence issues, specifically, New Zealand’s intelligence role in foreign policy.

As part of the discussion I suggested that Edward Snowden had done us a favour by exposing the extent to which NZ is a fully integrated member of the 5 Eyes signals intelligence network. The reason is that with the revelations that have come from the documents that he passed on to journalists, New Zealand has an opportunity to re-negotiate some of the terms of its participation in 5 Eyes. I noted that withdrawal from 5 Eyes was not an option–I said that it was like trying to leave the mafia. But the specific terms of what the GCSB does for 5 Eyes could be discussed given that New Zealand is by far the most vulnerable of the 5 Eyes partners to retaliation from the countries that it targets as part of the division of labour within Echelon. I specifically  mentioned that NZ might broach the subject of reducing its role in spying on China given how trade dependent NZ is on the Asian giant.

A couple of journalists in the room ran stories on the suggestion and the PM was asked about it at his weekly press conference. He rejected it out of hand and said that NZ would not modify its intelligence operations because of trade considerations because what it did in was in the national interest.

The Snowden documents suggest otherwise, but that argument can be left for another moment.

Let me explain why NZ has an opportunity to re-negotiate the terms of its agreement with the Anglophone powers even though it cannot withdraw from 5 Eyes entirely.

If NZ were to withdraw from 5 Eyes it would lose the substantial benefits, unique to a small country, that it accrues from being in an alliance with four bigger partners with global reach. The flow of intelligence within 5 Eyes is very much reciprocal but what NZ receives is far more than what it delivers to the network. It is tasked with using shared technological means located on or operated from NZ soil (including its diplomatic missions) to target  specific entities of common interest to the larger partners, and in exchange it receives global as well as more NZ-specific intelligence from those partners.

That is just one reason why withdrawal is unlikely. But think of the consequences if NZ unilaterally decided to opt out of Echelon. It is in possession of some of the most advanced signals interception technologies on the planet. The GCSB knows the processes, procedures, means, methods and protocols of the entire network. Fear that this knowledge and technologies (say, for example, X-Keyscore and Prism) could fall into hostile hands will inevitably prompt a negative response from NZ’s erstwhile intelligence allies, and that response will not be confined to the field of intelligence (I am aware of reports that some of the technologies and methods mentioned in the Snowden documents have been decrypted by Russian and Chinese intelligence but am not sure as to what extent this may have occurred).

Were NZ to try and establish an alternative signals intelligence network with other powers, the remaining 5 Eyes countries would likely move beyond defensive measures and into the field of offensive intelligence operations against NZ. In other words, the exit costs will be too high given the uncertain benefits received in the event of withdrawal.

That being said, the GCSB is integral to 5 Eyes operations. The partners cannot afford to alienate NZ on issues that are critical to NZ but marginal or less costly to them. Although they never thought that their operations would be exposed in the measure that they have, the 5 Eyes partners are now acutely aware, thanks to Snowden, that they rise and fall together when it comes to exposing how they go about signals intelligence acquisition and who they target. They can therefore ill afford to call NZ’s bluff on a matter that is of critical importance to the latter.

I would argue that bilateral trade with China is one such matter. Even if they have a pretty good idea of what the GCSB does for Echelon, public revelation of NZ having a lead role in spying on the Chinese at home and abroad will force the PRC to retaliate in some fashion, even if just to save face as an emerging great power with super power pretensions. It must show that it should not be disrespected and meddled in by small states no matter who those states are allied with. The means by which it can reach out and touch NZ in a bad way are myriad and not confined to diplomatic or economic relations.

The only reason that it would not do so is if it has counter-intelligence access to GCSB operations and wants to keep those “backdoor” channels open in spite of the publication of specifics about NZ espionage against it.

If NZ were to say to its partners that given its vulnerability to Chinese utu the GCSB would prefer not to take a major role in spying on the PRC, it is possible that the other partners will listen and consider the request. The GCSB can still spy on South Pacific, Latin American and other nations that do not have much leverage over it, as well as the UN, various NGOs and private firms as it is doing now. But it would give a pass to spying, at least in a major way outside of NZ territory, on the Chinese.

In my view, such a position would not prevent the GCSB (and SIS) from conducting counter-intelligence operations against Chinese espionage at home and abroad. Even if they know about these defensive measures the Chinese will likely not make an issue of them given that they instigated the back and forth. Where I would draw the line is on offensive operations against Chinese targets, especially when at the behest of the larger partners.

I am not surprised that John Key has no interest in this proposition. To do so requires political courage and a commitment to putting NZ national interests first. Neither is in his repertoire. Plus, even if he were to think about the dilemma posed by NZ’s increasingly counter-poised trade and security interests, any renegotiation along the lines I have posed would be done quietly and not publicly announced, much less at a press Q&A. But I doubt the latter is the case.

In any event, this is a potential moment of opportunity to redefine the terms and conditions of NZ’s involvement in 5 Eyes, however implausible that may seem at first glance. There is a supposed review of the NZ intelligence community now underway that could serve as a sounding board for opinions on the suggestion, and I am happy to add my two cents to the discussion should that be deemed worthwhile.

Another National double standard.

datePosted on 15:16, May 1st, 2014 by Pablo

Maurice Williamson is forced to resign as Minister because he made a phone call to the police asking them to be undertake a thorough review and be “on solid ground” when investigating a domestic violence incident involving a wealthy Chinese friend of his who invested a lot of money in New Zealand (the same Chinese fellow granted citizenship over the objections of immigration authorities, and who donated more than NZ$ 20 thousand to National in 2012).

Judith Collins retains her ministerial portfolios in spite of revelations that she interceded with Chinese officials on behalf of her husband’s export company while on an official visit to China that had nothing to do with exports or trade.

What is similar and what is different about the two cases? They are similar in that they both involve Chinese nationals with economic ties to the National party or entities linked to it. They are similar in that the ministerial interventions were in violation of the cabinet manual regarding conflicts of interest. They also represent obvious forms of political influence peddling.

How are they different? Collins is a a key player on National’s front bench, whereas Williamson is on the outers with National’s heavy hitters. Thus he is expendable while she is not.

Comparatively speaking, Williamson’s crime was arguably less than that of Collins. He made a call on behalf of a constituent urging Police diligence when investigating the charges against his friend, then left the matter at that. The fact that rather than tell the minister to buzz off the cops bent over backwards to satisfy him that they were on “solid ground” before prosecuting is a police issue, not a Williamson issue (the Police decided to prosecute in any event, with Mr. Liu eventually pleading guilty to two charges of domestic violence).

Collins used taxpayer funded official travel to take time out of her official schedule to divert and meet with Chinese business associates of her husband over dinner in the presence of an unnamed Chinese government official at a time when her husband’s business interests in China were being hindered by official reviews of New Zealand based export contracts. Although she had no real business being there, she brought an aide with her, adding to the impression that her presence at that dinner had the stamp of official approval.

Of the two, which is more obviously a conflict of interest and which has the clear stench of corruption wafting over it? Of the two, which one would be viewed more dimly by the likes of Transparency International (the anti-corruption agency that habitually lists NZ amongst the least corrupt countries to do business in)?

Hypocrisy much in the handling of the two cases by the Prime Minister? You be the judge, by I think that there is.

Evaluating export growth.

datePosted on 09:55, February 3rd, 2014 by Pablo

Much has been made of the fact that since the entrance into effect of the bilateral Free Trade Agreement (FTA) with China in 2008, New Zealand exports to China totaled NZ$33.7 billion in the six years since then compared to NZ$9.9 billion in the period 2002-08. In 2007/08 before the FTA went into effect exports to China totaled NZ$2.5 billion, and in 2012/12 they were worth NZ$7.7 billion. That is more than 200 percent growth in six years, or more than 45 percent per year (Hat Tip: Kiwiblog)

Needless to say, pro-trade cheer leaders think that this is a great thing. And perhaps it is. But before we get too excited and proclaim the absolute benefits of this bilateral, a few questions need answering.

First, what is the volume and worth of imports from China during the same period? In other words, what is the state of the bilateral trade balance?

Second, has the FTA led to export commodity diversification or concentration?

Third, has the increase in bilateral exports led to an increase in employment in the export sectors affected?

Fourth, has there been a trickle down effect evident in the expansion of auxiliary industries and tax revenues derived from them and the export sectors involved?

Then there are subsidiary questions:

Has overall NZ GDP per capita and income distribution increased as a result?

Have occupational health and safety standards improved in the export sectors associated with the FTA?

These questions are important because they illuminate more precisely who has and has not benefitted from the FTA.

I invite readers to do a little research on these questions, using the government’s own sources as well as academic studies. The findings may come as a surprise, as oftentimes macro-statistics mask the meso- and micro-impacts underneath the “big picture.”

Not all is what it seems.


Media Link: More on Huawei and the GCSB.

datePosted on 14:25, October 14th, 2012 by Pablo

It must be the season for espionage scandals and potential threats. The NZ media has taken an interest so I get to play talking head.

Of Llamas and Lamas

datePosted on 14:35, July 1st, 2010 by Lew

Public advisory, especially for DPF:



And to bring the post back around to the topic of Chinese authoritarianism and responses thereto, with a bonus llama connection: The Song of the Grass-Mud Horse made a splash a year or so ago, as a protest against the Chinese government’s internet “harmony” policy. The video is below (and contains necessary obscenity):

This graphically illustrates a point that shouldn’t need to be mentioned, but often does, and of which I was not fully conscious until I spent some time in China: for all that they are propagandised as such in the West, the Chinese are not simply mute automata struggling under the heel of their dictators. The public sphere, however constrained it might be by our standards, exists — and the diversity of views aired in it is increasing, not decreasing.


A Diplomatic Dilemma: Kowtow or Confront?

datePosted on 17:53, June 18th, 2010 by Pablo

The manhandling of Green Party leader Russell Norman by Chinese security guards as they escorted a high-level delegation into Parliament raises some thorny questions for the government. Norman was protesting in favour of a free Tibet when his flag was taken from him and he was shoved to the ground. Technically speaking, he was exercising his democratic right to free speech and protest on parliament grounds, so the minute the guards laid hands on him they were guilty of assault. Of course, it remains to be seen if Norman did anything to provoke the guards reaction, such as by rushing at the visiting officials or uttering threats (neither of which appears at this juncture to have happened). Some commentators believe that he deserved what he got because he was being provocative merely by protesting , or because the whole episode was a PR stunt anyway. Even so, if the assault on him was provoked by his holding the flag or shouting “free Tibet”  rather than him posing an immediate physical threat to the delegation, then the guards were in fact violating his rights as well as NZ criminal law and parliamentary protocol. So what is the government to do?

China is now the second largest trading partner of NZ, which has secured the first bilateral free trade agreement between China and a Western country. The National government has worked hard to deepen ties with the PRC, to the point that it is working on the details of a military exchange program with the Asian giant and has not opposed the sale of strategic assets to Chinese consortia. In the past the 5th Labour government has coordinated with visiting Chinese delegations to prevent protesters from getting close to the visitors. There is, in other words, a history of NZ officials working to appease Chinese sensitivities about protest and dissent within a larger context of improving relations between the two countries.

But there has never been a direct confrontation between members of a Chinese entourage and NZ citizens, much less a shoving match between Chinese nationals and an MP inside of parliament itself (as far as I know previous protests by Ron Donald never escalated this far). So a precedent is about to be set. If the NZ Police charge the security guards with assault, or if the government declares them personae non grata and expels them, then NZ runs the risk of having these strengthening ties disrupted by a Chinese diplomatic backlash. Even of short lived or partial, any retaliatory curtailment of trade and investment could end up costing NZ millions of dollars in lost revenue (and the jobs that go with it). But if the Police or government do nothing, then they send the signal that NZ’s commitment to civil rights is secondary to its commitment to trade. Some might see that as kowtowing to an authoritarian one party state in the pursuit of profit. So far the Police have said that they will investigate Norman’s complaint about the incident, but  that does not mean it will result in charges being laid.

One line of argument could be that NZ has to look at the broader and longer-term picture and not jeopardise a relationship that is crucial to NZ’s future prosperity over a trivial incident. A counter-argument is that NZ has more to lose if it abandons its democratic principles in favour of the ethereal promise of cash down the road. One rationale privileges principle over practicality; the other privileges the reverse.

So, what is to be done? What should be Labour and ACT’s responses be (as the majority opposition party and supposed champion of individual rights, respectively)? Should pragmatism triumph over principle, or should principle outweigh economic and diplomatic considerations? Is there a compromise solution in which face is saved all around? Will the Police go through the motions of an investigation but do nothing, and if so, what will National do by way of official follow up?

Less one think that this conundrum could only occur because of the nature of the Chinese, consider this scenario:

A protester attempts to approach US Vice President Biden and/or Secretary of State Clinton at the Beehive entrance in order to deliver a petition demanding closure of Camp X Ray at Guantanamo, or better yet, a summons to the International Court of Justice for complicity in US “war crimes” in Iraq and Afghanistan. What do you think the Secret Service response would be, and if the Secret Service agents surrounding the US dignitaries were to react in a physical manner, would the NZ Police or government press charges against them?

Such are the quandaries of being an elf amongst giants.

Resentful reactionary ethnocentric cultural protectionism

datePosted on 18:55, August 17th, 2009 by Lew

Buy Robyn Kippenberger an atlas, and a history of New Zealand. The chief executive of the RNZSPCA was on The Panel (audio; starts at about 06:15) this afternoon talking about the killing and eating of dogs, as opposed to other critters. Quoth Ms Kippenberger:

I think it’s generally agreed that we have companion animals in European countries, and we don’t eat them. […] I guess that New Zealand is a country that is largely European, and Māori, and none of us eat our dogs. And we’re also … and that’s the main culture in this country. […] I mean, if you want to eat dog, then go to Viet Nam, or go to China, or indeed, maybe go to Tonga.

In the immortal words of that noted killer and eater of critters, Barry Crump: hang on a minute mate. I have a few questions for Ms Kippenberger. In no particular order:

  • Who’s this ‘we’ you’re presuming to speak for, again, and who gave you the right to speak for them?
  • Since when was New Zealand a ‘European’ country? It’s in the South Pacific; the same part of the world as Tonga, incidentally.
  • Given that Māori brought dogs with them to Aotearoa for the express purpose of eating them, how exactly is it culturally offensive for Māori?
  • Upon what basis do you define ‘New Zealander’ as excluding Chinese, Viet Namese and Tongan people?
  • Why do you presume to go on the radio and talk about matters on which you are clearly not informed (viz: geography, Māori history, cultural identity and multiculturalism)?

She goes on:

What we’re saying is, it’s culturally insensitive to do it here. Other cultures tell us what is culturally insensitive to do in their countries. I don’t think that it’s anything other than giving people the heads-up that if they live in this country, actually, we don’t like what they’re doing if they do that.

The underlying discourse here is something along the lines of:

The whole world is PC and everyone gets to have their meddling way, telling us what we can and can’t do, so us whitebread suburban honkey hand-wringers are going to take this chance to draw a line in the sand, to the north of Asians and Islanders, and to the south of Māori (but not Māori as they actually are; but only as we feel like we are supposed to think of them, as rather like us, only brown).

(My words, not hers).

Yes, many New Zealanders object to the killing and eating of pets, particularly dogs. But liberal, multicultural society is quite capable of handling these differences internally. The SPCA is not an agency of cultural arbitration; as Ms Kippenberger has so aptly demonstrated, it is not equipped to be such an agency. Even the CEO doesn’t have the skills or inclination to come up with any better argument than assimilative monoculturalism, and can’t even get the most basic facts and logic of that feeble and reactionary argument right. Its mandate should be limited to those things it knows about – advocating against cruelty to animals while they’re alive, for example. There’s no argument here that the animal was treated cruelly, so the SPCA has no business being involved.

Animal rights and welfare activists should be likewise angered by this. Ms Kippenberger, who ought to be a champion of your cause, has demonstrated that it is led by fools whose attitude to cultural difference is ‘go back to the Islands’.


Contrasting examples of cultural difference

datePosted on 21:34, August 4th, 2009 by Lew

Two very different perceptions of the way cultural difference operates. From Tauhei Notts, commenting on Kiwiblog’s thread about the guilty verdict returned against Taito Phillip Field:

I believe that the jury was not culturally sensitive. Many people in Foreign affairs who dosh out us taxpayers’ funds to Polynesian nations are aware that what Field did was par for the course. Indeed, Field was incredulous at the fact that charges were even laid against him. He could not, and would not, see that what he had done was wrong. This is because what he did had been done for decades by Polynesian leaders. Field is the first one to be found guilty of what most New Zealanders consider to be awful behaviour, but what Polynesian people consider okay. The natives of the South Pacific have always had a different slant on morality and I think it is our job to encourage them to join the 21st century world.

And from Raymond Huo, talking about the case of Danny Cancian, who is in prison for killing a Chinese:

With regard to business, Westerners are generally transaction-orientated. They walk in the door, figure out the deal, sign the contract and get out. Chinese, on the other hand, are relationship orientated. The Chinese concept of friendship, or guanxi, is vital. In a highly centralised state, the use of guanxi is sometimes the only way to get things done.
The core of guanxi is doing business through value-laden relationships. To some extent, guanxi is the counter-part of a commercial legal system. Don’t get me wrong – Asian people do respect contracts. They are ethical. The only difference is that they do business differently. Mostly, obligations come from relationships, not only pieces of paper.

I’ve spent no time in the Pacific islands, but plenty of time living in East Asia, where obligations attach to relationships developed in a more or less organic fashion between individuals, their roles and networks, and the censure of failing to fulfill obligations is rendered by those individuals, roles and networks rather than being imposed by external arbitration. I played the kibun game (I think) very well in Korea for three years, until the very last hurdle – severance pay in our final job. On our second-to-last day in the country, several days after it was due to be paid up, I lost my nerve and called my boss (who’d been good to us and generally trustworthy) and insisted that he pay us immediately. He did. An hour later he cancelled the meal which had been called in our honour for that night (and at which he was planning to present us with the money, all in good time).

Transculturalism is complicated.