Posts Tagged ‘PRC’

The incremental shift.

datePosted on 14:13, December 28th, 2021 by Pablo

In the build up to the Xmas holidays I was interviewed by two mainstream media outlets about the recently released (December 2021) Defence Assessment Report and last week’s 5 Eyes Communique that included New Zealand as a signatory. The common theme in the two documents was the threat, at least as seen through the eyes of NZ’s security community, that the PRC increasingly poses to international and regional peace and stability. But as always happens, what I tried to explain in hour-long conversations with reporters and producers inevitably was whittled down into truncated pronouncements that skirted over some nuances in my thought about the subject. In the interest of clarification, here is a fuller account of what is now being described as a “shift” in NZ’s stance on the PRC.

Indeed, there has been a shift in NZ diplomatic and security approaches when it comes to the PRC, at least when compared to that which operated when he Labour-led coalition took office in 2017. But rather than sudden, the shift has been signalled incrementally, only hardening (if that is the right term) in the last eighteen months. In July 2020, the the wake of the ill-fated Hong Kong uprising, NZ suspended its extradition treaty with Hong Kong, citing the PRC passage of the Security Law for Hong Kong and its negative impact on judicial independence and the “one country, two systems” principle agreed to in the 1997 Joint UK-PRC Declaration on returning Hong Kong to Chinese control. At the same time NZ changed its sensitive export control regime so that military and “dual use” exports to HK are now treated the same as if they were destined for the mainland. 

In November 2020 NZ co-signed a declaration with its 5 Eyes partners condemning further limits on political voice and rights in HK with the postponment of Legislative elections, arrests of opposition leaders and further extension of provisions of the mainland Security Law to HK. The partners also joined in condemnation of the treatment of Uyghurs in Yinjiang province. In April 2021 Foreign Minister Nanaia Mahuta gave her “Dragon and Taniwha” speech where she tried to use Maori allegories to describe the bilateral relationship and called for NZ to diversify its trade away from overly concentrated partnerships, using the pandemic supply chain problems as an illustration as to why.

She also said that NZ was uncomfortable with using the 5 Eyes intelligence partnership as a public diplomacy tool. I agree completely with that view, as there are plenty of other diplomatic forums and channels through which to express displeasure or criticism. The speech did not go over well in part because NZ business elites reacted viscerally to a large tattooed Maori woman spinning indigenous yarns to a mainly Chinese and Chinese-friendly audience (and other foreign interlocutors further afield). From a “traditional” (meaning: white male colonial) perspective the speech was a bit odd because it was long on fable and imagery and short on “hard” facts, but if one dug deeper there were plenty of realpolitik nuggets within the fairy dust, with the proper context to the speech being that that Labour has an agenda to introduce Maori governance principles, custom and culture into non-traditional policy areas such as foreign policy. So for me it was the balancing act bookended by the trade diversification and 5 Eyes lines that stood out in that korero.

Less than a month later Prime Minister Ardern spoke to a meeting of the China Business Summit in Auckland and noted that “It will not have escaped the attention of anyone here that as China’s role in the world grows and changes, the differences between our systems – and the interests and values that shape those systems – are becoming harder to reconcile.” That hardly sounds like appeasement or submission to the PRC’s will. Even so, Mahuta and Ardern were loudly condemned by rightwingers in NZ, Australia, the UK and US, with some going so far as to say that New Zealand had become “New Xiland” and that it would be kicked out the 5 Eyes for being soft on the Chinese. As I said at the time, there was more than a whiff of misogyny in those critiques.

In May 2021 the Labour-led government joined opposition parties in unanimously condemning the PRC for its abuse of Uyghur human rights. The motion can be found here.

In July 2021 NZ Minister of Intelligence and Security Andrew Little publicly blamed China-based, state-backed cyber-aggressors for a large scale hacking attack on Microsoft software vulnerabilities in NZ targets. He pointed to intolerable behaviour of such actors and the fact that their operations were confirmed by multiple Western intelligence agencies. He returned to the theme in a November 2021 speech given at Victoria University, where he reiterated his concerns about foreign interference and hacking activities without mentioning the PRC by name as part of a broad review of his remit. Rhetorical diplomatic niceties aside, it was quite clear who he was referring to when he spoke of state-backed cyber criminals (Russia is the other main culprit, but certainly not the only one). You can find the speech here

In early December 2021 the Ministry of Defense released its Defense Assessment Report for the first time in six years. In it China is repeatedly mentioned as the major threat to regional and global stability (along with climate change). Again, the issue of incompatible values was noted as part of a surprisingly blunt characterisation of NZ’s threat environment. I should point out that security officials are usually more hawkish than their diplomatic counterparts, and it was the Secretary of Defense, not the Minister who made the strongest statements about China (the Secretary is the senior civil servant in the MoD; the Minister, Peeni Henare, spoke of promoting Maori governance principles based on consensus and respect into the NZDF (“people, infrastructure, Pacifika”), something that may be harder to do than say because of the strictly hierarchical nature of military organisation. At the presser where the Secretary and Minister spoke about the Report, the uniformed brass spoke of “capability building” based on a wish list in the Report. Let’s just say that the wish list is focused on platforms that counter external, mostly maritime, physical threats coming from extra regional actors and factors rather than on matters of internal governance.

Then came the joint 5 Eyes statement last week, once again reaffirming opposition to the erosion of Hong Kong’s autonomy and its gradual absorption into the Chinese State. Throughout this period NZ has raised the issue of the Uyghurs with the PRC in bilateral and multilateral forums, albeit in a quietly diplomatic way.

I am not sure what exactly led to NZ’s shift on the PRC but, rather than a sudden move, there has been a cooling, if not hardening trend during the last eighteen months when it comes to the bilateral relationship. The decision to move away from the PRC’s “embrace” is clear, but I have a feeling that something unpleasant may have occurred in the relationship (spying? influence operations? diplomatic or personal blackmail?) that forced NZ to tighten its ties to Western trade and security networks. The recently announced UK-NZ bilateral FTA is one step in that direction. AUKUS is another (because if its spill-over effect on NZ defense strategy and operations).

What that all means is that the PRC will likely retaliate sometime soon and NZ will have to buckle up for some material hardship during the transition to a more balanced and diversified trade portfolio. In other words, it seems likely that the PRC will respond by shifting its approach and engage diplomatic and economic sanctions of varying degrees of severity on NZ, if nothing else to demonstrate the costs of defying it and as a warning to those similarly inclined. That may not be overly burdensome on the diplomatic and security fronts given NZ’s partnerships in those fields, but for NZ actors deeply vested/invested in China (and that means those involved in producing about 30 percent of NZ’s GDP), there is a phrase that best describes their positions: “at risk.” They should plan accordingly.

Along with the New Year, there is the real possibility that, whether it arrives incrementally or suddenly, foreign policy darkness lies on the horizon.

Media Link: “A View from Afar” podcast, episode 7.

datePosted on 13:19, September 6th, 2020 by Pablo

In the most recent broadcast Selwyn Manning and I talk about the turn (back) towards hard power competition in international affairs. You can find it here.

I did an interview on the TVNZ Breakfast Show about the situation in Hong Kong. I tried to frame the issue as a collective action problem between two sides with very different end games. The video is here.

Because of time constraints we could not discuss the fact that the Hong Kong protests do not have a unified leadership that could lend coherency to the strategy and connection between tactics and that strategy. It also did not address the fact that the protestors have now moved to challenging the (HK) State’s monopoly over organised violence in the territory, which means that it is posing an existential threat to a core function of that State. Since the Hong Kong State has little more than police and intelligence agencies as its repressive apparatus, that means that further and more serious challenges to this monopoly will be met by a State that has far more coercive power at its disposal–the PRC.

I should have mentioned at some point that the interplay between hard-liners and soft-liners on both sides is crucial to a peaceful settlement. Only if soft-liners prevail on both sides will the solution be peaceful, but in order to have that happen the soft-liners will have to prevail within their respective camps. With hard core nationalists on both sides rejecting any form of compromise as a loss of face and demonstration of weakness, the stage is set for them to prevail. If they do the outcome will be bloody.

The soft-line opposition strategy is based on the fact that the PRC can wait a long time while gauging international reaction to immediate events in Hong Kong, added to the fact that provoking a violent PRC response erases what the Hong Kong hard liners aspire to deliver ( and those goals are indeed aspirational rather than deliverable). It remains to be seen if the principles understand this type of logic.

We also did not discuss the how the moderate-militant approach I mention in the clip has to be part of a larger incremental gains strategy whereby the protestors try to push a “two steps forward, one step back” agenda that sees them roll back various authoritarian initiatives while conceding on short term or relatively minor issues (perhaps including the extradition bill that sparked the current round of protests).

Nor did we discuss the fact that at the time of initial handover from the UK, the PRC was in no position to contest the terms of the agreement, especially those centred on the “One Nation, Two Systems” 50 year compromise. Nearly halfway into that process, it is clear that conditions have changed. Among other things, Hong Kong is no longer the source of GDP and international capital that it was for the PRC in 1997, having been eclipsed by mainland centres of commerce like Shanghai. This makes it less risky for the PRC to impose its will and accelerate the devolution process before the 50 year transition period ends in 2047. That puts it on a collision course with those in Hong Kong who want more rather than less autonomy when that time comes.

Finally, we did not discuss the fact that should push come to shove the protesters are on their own. For all the US bluster and the threats of trade sanctions against the PRC if it uses force to quell the protests, no one is coming to the rescue. Not the UK, not the EU, not NATO, not SEATO, not Taiwan, not blue-helmeted UN troops–nobody will do anything significant in their defence.

That means that there is a limit to what the protestors can achieve by pushing the protest envelope, since there will be no counter to the PRC use of force if and when it comes. Hence the need for the incremental gains approach mentioned above, and even that may be too little to stave off the eventual PRC takeover in 2047.

A bridge too far.

datePosted on 07:28, November 21st, 2018 by Pablo

The Labour-led government in New Zealand has settled on a new mantra when it comes to addressing the US-China rivalry. It claims that New Zealand is ideally situated to become a bridge between the two great powers and an honest broker when it comes to their interaction with the Southwest Pacific. This follows the long-held multi-party consensus that New Zealand’s foreign policy is independent and autonomous, and based on respect for international norms and multinational institutions.

The problem is that the new foreign policy line is a misleading illusion. It ignores historical precedent, the transitional nature of the current international context, the character and strategic objectives of the US and the PRC and the fact that New Zealand is neither independent or autonomous in its foreign affairs.

The historical precedent is that in times of conflict between great powers, small states find it hard to remain neutral and certainly do not serve as bridges between them. The dilemma is exemplified by the island of Melos during the Peloponnesian Wars, when Melos expressed neutrality between warring Athens and Sparta. Although Sparta accepted its position Athens did not and Melos was subjugated by the Athenians.

In stable world times small states may exercise disproportionate influence in global affairs because the geopolitical status quo is set and systemic changes are incremental and occur within the normative framework and around the margins of the system as given. When international systems are unstable and in transition, small states are relegated to the sidelines while great powers hash out the contours of the emerging world order—often via conflict. Such is the case now, which has seen the unipolar system dominated by the US that followed the bi-polar Cold War now being replaced by an emerging multi-polar system aggregating new and resurgent powers, some of which are hostile to the West.

In this transitional moment the US is in relative decline and has turned inward under a Trump administration that is polarizing at home and abroad. It is still a formidable economic and military power but it is showing signs of internal weakness and external exhaustion that have made it more reactive and defensive in its approach to global affairs. China is a rising great power with global ambition and long-term strategic plans, particularly when it comes to power projection in the Western Pacific Rim. It sees itself as the new regional power in Asia, replacing the US, and has extended its influence world-wide.That includes involvement in the domestic politics and economic matters of Pacific Island states, including Australia and New Zealand.

China’s rise and the US decline are most likely to first meet in the Western Pacific. When they do, the consequences will be far reaching. Already the US has started a trade war with the Chinese while reinforcing its armed presence in the region at a time when China cannot (as of yet) militarily challenge it. China has responded by deepening its dollar and debt diplomacy in Polynesia and Melanesia as part of the Belt and Road initiative, now paralleled by an increased naval and air presence extending from the South and East China Seas into the blue water shipping lanes of the Pacific.

There lies the rub. New Zealand is neither independent or autonomous when it confronts this emerging strategic landscape. Instead, it has dichotomized its foreign policy. On the security front, it is militarily tied to the US via the Wellington and Washington Declarations of 2010 and 2012. It is a founding member and integral component of the Anglophone 5 Eyes signal intelligence gathering network led by the US. It is deeply embedded in broader Western security networks, whose primary focus of concern, beyond terrorism, is the hostile activities of China and Russia against liberal democracies and their interests.

On trade, New Zealand has an addict-like dependency on agricultural commodity and primary good exports, particularly milk solids. Its largest trading partner and importer of those goods is China. Unlike Australia, which can leverage its export of strategic minerals that China needs for its continued economic growth and industrial ambitions under the China 2025 program, New Zealand’s exports are elastic, substitutable by those of competitors and inconsequential to China’s broader strategic planning. This makes New Zealand extremely vulnerable to Chinese economic retaliation for any perceived slight, something that the Chinese have been clear to point out when it comes to subjects such as the South China island-building dispute or Western concerns about the true nature of Chinese developmental aid to Pacific Island Forum countries.

As a general rule issue linkage is the best approach to trade and security: trading partners make for good security partners because their interests are complementary (security protects trade and trade brings with it the material prosperity upon which security is built). Absent that, separating and running trade and security relations in parallel is practicable because the former do not interfere with the latter and vice versa. But when trade and security relations are counterpoised, that is, when a country trades preferentially with one antagonist while maintaining security ties with another, then the makings of a foreign policy conundrum are made. This is exactly the situation New Zealand finds itself in, or what can be called a self-made “Melian dilemma.”

Under such circumstances it is delusional to think that New Zealand can serve as a bridge between the US and China, or as an honest broker when it comes to great power projection in the Southwest Pacific. Instead, it is diplomatically caught between a rock and a hard place even though in practice it leans more West than East.

The latter is an important point. Although a Pacific island nation, New Zealand is, by virtue of its colonial and post-colonial history, a citizen of the West. The blending of Maori and Pasifika culture gave special flavor to the Kiwi cultural mix but it never strayed from its Western orientation during its modern history. That, however, began to change with the separation of trade from security relations as of the 1980s (where New Zealand began to seek out non-Western trade partners after its loss of preferred trade status with UK markets), followed by increasingly large waves of non-European immigration during the next three decades. Kiwi culture has begun to change significantly in recent years and so with it its international orientation. Western perspectives now compete with Asian and Middle Eastern orientations in the cultural milieu, something that has crept into foreign policy debates and planning. The question is whether the new cultural mix will eventuate in a turn away from Western values and towards those of Eurasia.

The government’s spin may just be short term diplomatic nicety posing as a cover for its dichotomous foreign policy strategy. Given its soft-peddling of the extent of Chinese influence operations in the country, it appears reluctant to confront the PRC on any contentious issue because it wants to keep trade and diplomatic lines open. Likewise, its silence on Trump’s regressions on climate change, Trans-Pacific trade and support for international institutions may signal that the New Zealand government is waiting for his departure before publicly engaging the US on matters of difference. Both approaches may be prudent but are certainly not examples of bridging or brokering.

While New Zealand audiences may like it, China and the US are not fooled by the bridge and broker rhetoric. They know that should push come to shove New Zealand will have to make a choice. One involves losing trade revenues, the other involves losing security guarantees. One involves backing a traditional ally, the other breaking with tradition in order to align with a rising power. Neither choice will be pleasant and it behooves foreign policy planners to be doing cost/benefits analysis on each because the moment of decision may be closer than expected.