Posts Tagged ‘China’

Pick your poison.

datePosted on 13:37, June 12th, 2018 by Pablo

Two decades ago New Zealand uncoupled the security and trade strands in its foreign policy. The decision stemmed from the removal of New Zealand’s preferential trade status with the UK in the early 1970s and the fallout to the embrace of a non-nuclear status in 1985, which led to the dissolution of the Australia-New Zealand-US military alliance (ANZUS). With the end of the Cold War, New Zealand foreign policy elites decided that one of the cornerstones of foreign policy in the tight bipolar world that dominated international affairs from 1945 to 1990, issue linkage between security allies who trade preferentially with each other, no longer applied to the conduct of its international relations and that placing the trade and security “eggs “of foreign policy in different baskets better ensured independence and autonomy in international affairs.

Over the next twenty years New Zealand shifted its trade orientation to non-traditional partners in Asia, Latin America and the Middle East while slowly re-establishing its security ties with its traditional Anglophone allies. The latter trend was accentuated after 9/11 but did not slow the pursuit of preferential trade agreements with new markets, China in particular. In fact, New Zealand signed the first bilateral free trade agreement (FTA) between a Western democracy and the PRC in 2008, and within a few short years China has become New Zealand’s second largest trading partner (after Australia), supplanting both the EU and the US in that regard.

In parallel, New Zealand joined the US-led “war on terror” (sic) by deploying troops to Afghanistan from 2001 to the present (now in a diminished role), Iraq 2003-2013 and Iraq and Syria from 2015 to the present. It signed the bilateral Wellington (2010) and and Washington (2012) Declarations that made it a first tier defense partner of the US, and it has strengthened its intelligence ties with the Anglophone partners in the 5 Eyes signals intelligence network as well as upgraded liaison relations between its human intelligence agency, the Security Intelligence Service (SIS) and Western counterparts such as ASIO (Australia), the CIA (US), DGSE (France) and others.

The trouble with the “eggs in different baskets” approach is that it assumes that a balance of power can be maintained and ignores the possibility of conflict between major trade and security partners. The guiding principle of issue linkage was that security and trade partners trusted and did not conflict with each other. Conflict was limited to between alliance systems. Uncoupling of security and trade linkages consequently raises the possibility of conflict between competing security and trade partners, something that makes the delinked stance more akin to straddling a barbed wire fence while standing on ice blocks than balancing between competing interests.

The situation is made worse for small states trying to remain neutral between competing great powers. That situation, described by Thucydides in the History of the Peloponnesian Wars when recounting the siege of Melos and its attempts to skirt the conflict between Athens and Sparta,occurs when a small state is forced to choose between two great power rivals. Although the Spartans accepted its neutrality, Melos refused Athenian demands to swear fealty and as a result was starved, invaded, ransacked, its men killed and its women and children taken prisoner.

Mutatis mutandis, this is increasingly likely to be the dilemma posed to New Zealand as a resulted of its bifurcated foreign policy. China and the US are on a collision course across a range of strategic issues, including security and trade, as the jockey for dominance in the Western Pacific. Chinese militarisation of artificial islands in the South China Sea and its claims to sovereignty over that entire water space (and territories claimed by five neighboring states), coupled with its aggressive use of “checkbook diplomacy” to win friends in and influence the foreign policies of Pacific Island nations, added to its rapid naval expansion and power projection into the blue waters of the Western Pacific have been met with a US “pivot to Asia” and a shifting of US military assets to the Pacific theater. The Chinese have tied their military expansionism in part to the “One Belt One Road” trade initiative that seeks to extend China’s trade influence across continents (combining the old land-based Silk Road routes with a Maritime Silk Road linking Southern China and East Africa with ports in between). It also has a naval strategy—the “chain of pearls” strategy– premised on moving beyond defence of what it considers to be its inshore seas (such as the South and East Asian Seas) and into the Indian and Pacific oceans where it can self-guarantee maritime security in its sea lanes of communication.

Under Donald Trump’s presidency the US has retrenched economically, abandoning free trade pacts such as the Transpacific Partnership in favor of an economic nationalist strategy premised on protective tariffs and bilateral trade agreements. It has turned its back on much of the rules-based liberal world order crafted over the past sixty years in favor of a unilateralist diplomatic approach heavily grounded in aggressive military re-assertion in contested areas. It has also abandoned issue-linkage between trade and security with ertswhile allies except to use “national security” as an excuse to gut extant trade pacts (as the most recent G7 fiasco demonstrates).

The combination of economic nationalism and military-led diplomacy raises the possibility of open conflict with power contenders disinclined to bend to US demands. More broadly, the transition from the Cold War to the unipolar world in which the US was undisputed hegemon has now been followed by the rise of a contentious multipolar order in which rising and re-assertive powers contest US leadership in world affairs, China and Russia especially. Since conflict serves as a systems regulator during transitional international moments and because old alliance systems are under siege and new “power blocs” are being created, the likelihood that conflict will break out between ascendent and descendent powers as they jockey for supremacy in the new world order has increased markedly.

The jostling for position has many manifestations. One of them is the contest for influence in non-aligned and uncommitted states. Because of its bifurcated foreign policy New Zealand is seen as one such state by China, and recent controversies about PRC “influence operations” in Aotearoa parallel similar debates about the extent of Chinese “soft” subversion in the political and economic systems of Australia, Canada and several African and Latin American states. In fact, there is enough backlash throughout the Five Eyes network about PRC use of front organizations and other “magical weapons” (including corrupt inducements to key actors) so as to have it rated as a threat as grave over the long-term as espionage and other intelligence collection activities conducted by the Chinese. They are seen as more pernicious than Western influence activities such as educational and cultural exchanges, etc. because they are more directly focused on influencing political and economic outcomes in ways favorable to the PRC and are designed to support (and are in fact closely linked to) the authoritarian policies of the Chinese Communist Party at home and abroad.

The result is a growing ideological battle between the PRC and New Zealand’s Western allies, particularly the US and Australia, over the future direction of the country. On the one hand, the Chinese presence in New Zealand has been materially beneficial. But that has come with strings attached that are believed to compromise the integrity of New Zealand institutions. For its their part, New Zealand’s Anglophone orientation has not paid similar material dividends in recent times even though it gives it a seat at the table in security meetings with its traditional partners. And although Western influence in New Zealand has been benign due to shared values and cultural norms, the record of the the US when confronting democracies that stray from their preferred political and economic approaches demonstrates that there is a dark side to their influence as well (one only need think of US subversion of the Whitlam government in Australia and record in Latin America to get a sense of this).

New Zealand consequently finds itself caught on the horns of an impending dilemma: if push comes to shove between China and the US, which side should it choose? Even if the great power conflict is economic and diplomatic rather than military, it will be forced to choose within the next decade or so because New Zealand is too deeply tied to both countries to play the balancing game once the great power rivalry erupts into open conflict. The question is therefore not a matter of if but of when and for/against who?

There will be significant costs to whatever choice is made. Should New Zealand choose China (as a rising great power), it will lose the security umbrella and suffer the diplomatic wrath of its most traditional and closest international partners. The consequences will be felt in a loss of trade and diplomatic ostracism, but most acutely in security relations with other Western democracies. The Five Eyes listening posts in New Zealand will be dismantled and all of the highly sensitive equipment, to say nothing of archived records and stored data, will be removed under duress. This could well cause a revolt within the New Zealand intelligence community given its Anglophone orientation and when coupled with “dark” influence operations could prompt civil unrest amongst those disinclined to cast their lot with the Chinese. It could even prompt covert and overt hostile responses from the jilted partners, who will likely discontinue military relations with New Zealand, including sale and supply of equipment. There will be a moment of national crisis.

Should New Zealand opt to side with the US and its security allies in any future conflict with China, it will suffer serious economic losses as a result of Chinese retaliation. This has already been presaged by the Chinese response to New Zealand’s support for the International Court of Arbitration’s ruling in favor of the Philippines in its dispute with China over island-building in contested waters, where New Zealand goods were held up in port and CCP-controlled media editorials warned New Zealand over the consequences of siding against China in future disputes.

Given that the New Zealand economy is highly dependent on agricultural and other primary good exports to China as well as tourism and students from it, the economic costs of losing the Chinese market will not be balanced by increasing trade elsewhere or recruiting tourists and students from other countries. That includes trade with the European Union with or without Great Britain, particularly if New Zealand persists in negotiating a bilateral FTA with Russia in the face of EU sanctions against it. No other export market can compensate for the loss of China, and since New Zealand does not have enough value-added exports or a domestic service sector that can take up the slack, and because its tourism and foreign student markets have been framed around preferential treatment for Chinese (e.g. via special visa schemes), it is bound to suffer a severe economic downturn should its choice go against the PRC.

The PRC will also use its deeply embedded influence assets to sow discord within the Chinese expat community and within the power circles that it has penetrated. That could add to the general unrest caused by the turn away from such an economic powerhouse and benefactor. It will undoubtably use diplomatic as well as economic and perhaps even covert and overt hostile means to punish New Zealand and hurt its interests (say, by abandoning fishery and other conservation schemes in the South Pacific and using naval assets to protect its commercial fleet from foreign law enforcement). This list of retaliatory measures is long and the means by which they are delivered powerful.

So what could precipitate the forced choice? Consider the following scenarios which, if not exhaustive or immediate, are definitely within the realm of the plausible:

1. China continues to demand that New Zealand renounce its participation in the multinational naval conducting freedom of navigation and safe passage exercises in the disputed waters of the South China Sea. When New Zealand refuses to do so and send a ship on patrol just outside the 12 mile territorial limit claimed by the Chinese around, say, the Spratly Islands, the Chinese respond by suspending all agricultural imports from New Zealand for six months. New Zealand exporters go crazy over the loss of income and the government is pressured to give in to the Chinese demand; or, the government refuses to give in to the demand and a subsequent patrol by a New Zealand frigate is hit by an anti-ship missile fired from the Spratlys**. Several sailors are killed and the ship is crippled and towed into Chinese claimed waters and held until apologies are given for its “intrusion” and “provocation.” What then?

2. The Chinese announce the signing of a forward basing agreement with Fiji in which a deep water berthing complex, a 14,000 foot runway and facilities for a division’s worth of troops will be constructed near Suva. Soon after that the Russians announce that they have made a deal with the Chinese to rotate expeditionary forces through the base for tropical warfare training. Australia, France, the UK and US denounce the move as unacceptable. What does New Zealand do?

3. Australia and the US announce the uncovering of a Chinese espionage ring in the South Pacific. It includes several Chinese individuals, including dual nationals, in New Zealand. These are diplomats, students, business people and front agencies engaged in both intelligence gathering and subversive activities that extend into the Beehive and security bureaucracies. The allies call for the closure of Chinese diplomatic facilities and the expulsion of diplomats identified in the sweep and the arrest of those without diplomatic immunity on spying charges, including the possibility of their extradition to the US because of attempts to penetrate the Five Eyes listening posts and other sensitive sites in which the US has a presence. How does New Zealand respond?

4. The US imposes redoubled tariffs on New Zealand exports because it refuses to raise its defense spending to 2 percent of GDP and permit US pharmaceutical and IT companies to extend the lifetime of monopoly patents and proprietary intellectual property rights in New Zealand. It demands New Zealand take a more adversarial stance against China in regional and international fora and reinforces its position by restricting intelligence flows and military-to-military contacts within 5 Eyes and between the two countries, including a cut off of US Air Force resupply flights to NZ Antarctic bases from Christchurch.

Strategic planners in Wellington may not like to ponder these unpalatable scenarios and the unpleasant consequences that a forced choice entails regardless of the nature of the decision. But given the way great power rivalries are playing our at present, they need to consider the possibility that the time will come when the “eggs in different baskets” approach is proven detrimental to the national well-being and a choice between great power poisons has to be considered.

** Less readers think this scenario far-fetched, be aware that it would demonstrate Chinese resolve to defend its self-proclaimed territories knowing that New Zealand’s larger security partners will not risk war over an attack on the “weakest link,” in the multinational naval coalition, especially given New Zealand’s seeming reluctance to denounce Chinese norm violations in the region. That will force a diplomatic resolution, which itself is a victory for the PRC.

Cherry picking on Chinese influence.

datePosted on 11:32, May 29th, 2018 by Pablo

Concern about Chinese influence operations in Western democracies has increased over the last few years, including here in NZ. The concern stems from the fact that, although not espionage or intelligence gathering per se, such operations–which involve money spent on individuals and organisations, establishment of pro-China fronts and media outlets, and placement of individuals linked to or controlled by the Chinese Communist Party in positions of corporate and political importance–corrupt Western democratic systems and undermine the political, social and economic values that underpin them.

The impact of Chinese influence operations has been the subject of considerable discussion in Australia, to the point that politicians have been forced to resign because of undisclosed ties to Chinese interests and intelligence agencies have advised against doing business with certain Chinese-backed agencies. As usual, the NZ political class and corporate media were slow to react to pointed warnings that similar activities were happening here (people may remember my essay on a Chinese fifth column from a few years ago). It was not until Canterbury University academic Anne Marie Brady published an essay last year on so-called Chinese “magic weapons” that the extent of Chinese influence in the local political and corporate worlds was revealed and became a matter of public interest.

It is significant that Brady’s work was first published in the US for a think tank focused on Chinese international affairs, and her first public exposure happened in Australia at a parliamentary committee hearing. That is because, unlike the US and Australia, NZ politicians are not particularly interested in digging into the nature and extent of Chinese influence on the party system and government policy. This, in spite of the “outing” of a former Chinese military intelligence instructor and academic as a National MP and the presence of well-heeled Chinese amongst the donor ranks of both National and Labour, the close association of operatives from both parties with Chinese interests, and the placement of well-known and influential NZers such as Don Brash and Jenny Shipley in comfortable sinecures on Chinese linked boards, trusts and companies.

As I have written before, there is enough to this pattern of behaviour to warrant scrutiny from NZ intelligence agencies and the police. But we also need to put Chinese influence operations in perspective. How are the Chinese any different than the Indians or Polynesian groups when it comes to infiltrating political parties, other than the amount of money available to them? How are these influence operations substantially different than those of other governments such as the US, which funds an array of scholarships, visitor programs, parliamentary delegation junkets and the like? How are Chinese backing of friendship and solidarity groups different than those backed by other foreign governments? How is Chinese corporate fund raising, “fact-finding” and conference travel and other ear-bending efforts any different than the lobbying of corporations, business associations, advocacy groups, etc.?

The answer seems to be that the Chinese are authoritarian, have lots of money to spend on making friends and influencing people and do so in a clearly transactional fashion, much as they do via their chequebook policy in the South Pacific. The implication is that they engage in corrupt practices when necessary and will not adhere to the strictures of democratic governance other than as lip service when it comes to pursuing their interests. Since NZ is, in essence, just another Pacific Island nation, why should this come as a surprise? In fact, the more interesting issue is why, fully knowing that the Chinese are using influence operations for purposes of State that go beyond international friendship or business ties, do so many prominent New Zealanders accept their money and/or positions on front organisations? Is the problem not so much what the Chinese do as as a rising great power trying to enlarge its sphere of influence as it is the willingness of so-called honourable Kiwis to prostitute themselves for the Chinese cause?

Last week the beat up on Chinese influence in NZ took a strange twist. At a US-China Economic and Security Review Commission (USCESRC) hearing, an ex-CIA analyst said that the Chinese had penetrated the “political core” of the country and that in light of that the US should reconsider keeping NZ in the Five Eyes signals intelligence sharing network.

The absurdity of these remarks needs to be deconstructed, not only for what was said but for what was not said. Let it also be noted that although nominally a bipartisan agency of the US Congress, the USCESRC has increasingly become a China-bashing forum, something that has been accentuated under the leadership of Senate Majority Leader Mitch McConnell (who oversees Commission appointments) and President Trump. This also matters because the witnesses called to testify before USCESRC are often cherry picked for their views on matters of US-China relations.

In his case the ex-CIA analyst rightly pointed out that, in contrast to the US and Australia, the NZ political elite were blasé about the extent of Chinese influence in local politics. But he took a step too far, downplaying the record of the previous National government and criticising the new Labour government for casting a blind eye on pernicious Chinese influence within its ranks (the only mention of National was a reference to the Jian Yang case). He then jumped the shark by recommending that the US and other 5 Eyes partners reconsider NZ’s membership in the signals intelligence sharing partnership.

Let’s be very clear: for the previous nine years National was in power, the deepening of Chinese influence was abided, if not encouraged by a Key government obsessed with trade ties and filling the coffers of its agrarian export voting base. It was National that ignored the early warnings of Chinese machinations in the political system and corporate networks, and it was Chinese money that flowed most copiously to National and its candidates. It is not an exaggeration to say that Chinese interests prefer National over Labour and have and continue to reward National for its obsequiousness when it comes to promoting policies friendly to Chinese economic interests. In fact, it is National that had a Minister, in the person of Judith Collins, attempt to use her position and manipulate the NZ ambassador to China into pushing her husband’s dodgy Chinese-backed business.

All political parties protest that they strictly adhere to campaign finance law and on paper they clearly do. But the whiff of dark money, dirty politics and other forms of unacknowledged influence trading has long clung to National in a measure not shared with its opponents. Put succinctly, contrary to what the the ex CIA analyst intimated, the influence of Chinese interests has been strongest when National is in government. And it is not just the Chinese who have availed themselves of the favourable climate operative during National’s tenure.

Not that National is solely to blame when it comes to trading favours. Labour clearly has consorted with some unsavoury Chinese donors and it remains to be seen if it will be any different than National now that it is out of the wilderness and back into government. But if foreign penetration of the “political core” is such a concern, it is surprising that no serious mention has made either at home or abroad of Winston Peters’ ties to Russia via the horse industry and beyond. In fact, when one looks at Peters’s links to an assortment of industries and interests, it is not just foreigners who appear to have an inside track on his thinking. Even so, the notion of a “political core” being compromised assumes that a whole array of constituent groups, from unions to manufacturers to iwi, are in the pockets of the Chinese no matter who is in government. Perhaps they are, but if so, I have not heard about it.

Labour may have the likes of Raymond Ho in its ranks and some dubious Chinese businessmen among its supporters, but it comes nowhere close to National when it comes to sucking up to the Chinese. That is why Jian Yang is still an MP, and that is why we will never hear a peep from the Tories about the dark side of Chinese influence operations. For its part, Labour would be well-advised to see the writing on the wall now that the issue of Chinese “soft” subversion has become a focal point for Western democracies. After all, Chinese influence operations that work to subvert basic value structures do so against a backdrop of aggressive Chinese cyber attacks and intelligence gathering in the countries in which influence operations are most prominent, NZ included.

But that is also why the recommendation that NZ be excluded from 5 Eyes is ridiculous. First, because for all of the talk about counter-terrorism, the bulk of counter-intelligence efforts by NZ (through the SIS and GCSB) and its 5 Eyes partners are directed at state actors, China in particular. Even if the NZ political elite were totally compromised by the Chinese, the security bureaucracies would insulate their operations from political interference and would likely work with the Police to demonstrate when and where politicians were acting on behalf of Chinese rather than NZ interests. It is the NZ intelligence community (NZIC), more than anyone else, who know the full extent of Chinese activities in the country, and the NZ intelligence community is fully ensconced in Anglo-centric democratic intelligence networks. It is therefore not likely that the NZIC would overlook the type of Chinese influence operations that result in capture of NZ’s “political core.”

Secondly, getting thrown out of 5 Eyes is not simply a matter of being told to take one’s toys and go home. The equipment at the listening posts at Waihopai and Tangimoana and at GCSB headquarters in Wellington is acutely sensitive and there are numerous citizens of partner countries working at those installations. Dismantling and removing equipment, files, archives and other sensitive material from such facilities will be time consuming, diplomatically fraught and operationally vulnerable, especially when it is well known that the Chinese, foremost amongst others, are extremely interested in them.  Institutional history, to include linkages with 5 Eyes partners and broader security networks, would have to be purged in order to avoid it falling into adversary hands. So getting kicked out of 5 Eyes involves much more than a rebuke, and, given NZ’s taskings within the 5 Eyes network, it is precisely the Chinese who will benefit the most from the expulsion.

If the US and other 5 Eyes partners are as worried about NZ being compromised by the Chinese as the ex-CIA analyst suggests that they are, a message of concern would have been sent to the NZ government in at least three ways: via diplomatic communications from the US embassy (which undoubtably has sent reports back to the State Department about the prevalence and impact of Chinese influence operations and intelligence gathering in NZ); by a diminishing of intelligence feeds from those partners in an obvious fashion; and by direct communication between the intelligence chiefs involved. This could well have been the purpose of the visit by the US Director of Intelligence to NZ a few weeks ago and if so, the gravity of the concerns have now been made clear to the Ardern government. However, the PM as well as the Opposition leader have both said that nothing has been brought to their attention that causes them to believe that NZ’s political system has been compromised by Chinese agents.

Given my antipathy towards authoritarians, I hold no particular affection for the PRC. But I do recognise that it does so as a maturing great power and accept that its behaviour is not going to change any time soon unless action is taken to circumscribe its activities in the West–a problem for societies founded on notions of freedom of association, movement and speech (including of opinion and the press). Because these rights are seen as Achilles Heels to be exploited by authoritarian rivals such as China and Russia, it should be expected that they will continue to be used as avenues of exploitation by them (as has been well demonstrated in the US).

What I deplore the most, though, is attacks on left-leaning governments (such as they are) like the current Labour government in NZ for supposedly going soft on Chinese influence pandering when in fact it has been right-leaning governments, not only in NZ but elsewhere, that have most assiduously courted Chinese investment and better diplomatic ties in spite of the PRC’s authoritarian character and dubious record when it comes to human rights and adherence to international conventions. For the NZ media to pick up and bang this hammer when it is part of an orchestrated attack on the Chinese by the US doing so for geopolitical reasons of its own demonstrates how shallow and uncritical reporting has become in Aotearoa. The issue is serious, which is precisely why it should not be subject to partisan manipulation or, ironically, pressure from allied states.

So yes, NZ has a problem with Chinese influence operations on its soil, particularly the willingness of NZers to serve Chinese interests for a handful of coin. But no, it is not just the fault of Labour and no, it is not as bad as has been alleged by the ex-CIA analyst. Nor is what the Chinese do in terms of influence mongering that dissimilar to what many other entities do when pushing their message in the NZ political system.  So let us take better notice of the phenomenon and address it for what it is without succumbing to the apocalyptic diatribes of people whose concern about Chinese influence operations has  less to do with the particularities of NZ and more to do with the broader strategic competition that sees China on the rise and the US in decline.

BONUS LISTEN: Here is an interview done on RNZ by the ex CIA analyst in question. Readers can form their own opinions as to whether he sounds like an authoritative and credible source for the claims he has made: https://www.radionz.co.nz/national/programmes/morningreport/audio/2018646774/ex-cia-analyst-admits-trump-irony-in-china-influence-warning

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:

Llama



Lama



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.

L

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’.

L

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.

L